Independents continue to lead the way in the global CBD market place as most major consumer brands baulk at the ‘hazy’ legal status of the cannabis industry, says a new report.
The Global Cannabis Report completes a full set for U.K. based analysts Prohibition Partners following recent reports into Europe, North America and other jurisdictions. Its headline grabbing figure is the global legal cannabis market is forecast to be worth up to U.S. $103.9 billion by the year 2024.
It seems like a reasonable guesstimate, whilst other bullish, and less-statistically driven commentators slap a trillion dollar price tag on legal cannabis.
Future Looks Bright
Prohibition Partners highlight the plummeting market valuations for North American cannabis companies but goes on to say the future looks bright.
It says: “However, despite a lack of investor confidence, due in part to the overvaluation of cannabis companies and a lack of revenue growth in 2019, the report demonstrates that the fundamental value and growth of the market remain strong.”
It highlights the medical cannabis market as contributing more than half global revenues at $62.7 billion by 2024. The report says it is mostly ‘independent start-ups’ that are leading the market for CBD wellness products as it appears in all formats from creams, to drinks, food ingredients and beauty and skin creams,
It says: “The hazy legal status of the industry has deterred many large consumer goods companies from getting involved. As the market progresses, big tobacco, pharma and CPG companies are expected to make moves, as exemplified by deals from Constellation Brands, Altria, Novartis and Anheuser-Busch, to name but a few.”
Asian Domino Effect
The report highlight the dominance of Canadian companies, pinpoints the emerging European markets and identifies ‘Latin America and Africa as ripe for investment’. Europe is forecast to have the largest legal cannabis market by 2024 at US$39.1 billion, mainly driven by its medicinal market – and it is predicted to outgrow North America.
In Latin America many governments are keen to encourage the industry with the Colombian Ministry of Justice and Law committing to speedy licensing and its drugs council raising national cultivation targets. In Asia, the report identifies a ‘domino effect’, where the attitudes in many countries are being influenced by new legislative decisions implemented by their neighbours.
Last December Thailand became the first country in Southeast Asia to approve the use of medical cannabis.
@Prohibition Partners says it methodology is based on a variety of official sources and data from bodies such as; the United Nations, the World Bank, the Organisation for Economic Co-operation and Development, the European Monitoring Centre for Drugs and Drug Addiction and the International Narcotics Control Board.
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