Medical cannabis is permitted in most of the states in the United States, and 10 states have legalized cannabis for recreational use. The 2018 Farm Bill opened up many market opportunities in the United States. CB Insights published a report in which it examined which traditional sectors of the economy are changing as a result of the growing cannabis market. Here are 10 of them.
The medical properties of cannabis, such as cannabinoids, were not only studied in the United States but around the world. To date, the most well-known cannabinoids are tetrahydrocannabinol (THC), cannabinol (CBN) and cannabidiol (CBD). These studies will make massive changes to the cannabis sector.
CBD, in particular, attracted the attention of scientists. Many of whom are studying its impact on epilepsy, cancer, anxiety, and other disorders.
Recently, the U.S. Food and Drug Administration (FDA) approved the use of CBD for the treatment of two types of epilepsy.
According to research data, pharmaceuticals may receive more than $4 billion a year as a result of the increase in the number of prescriptions for medical marijuana.
Therefore, many pharmaceutical companies are looking for ways to benefit from the growth of the marijuana market. Including PharmaCannis, GW Pharmaceutical, and Tilray.
Scientists report that CBD can not only alleviate pain and depression. This substance also has anti-inflammatory and acne properties.
Lord Jones produces chewing gum and lotions with CBD oil, which help with muscle inflammation and joint pain. The well-known beauty giant Sephora also offers products using CBD oils.
The product packaging for cannabis is strictly regulated. There are requirements for childproof and resealable covers, protection against unauthorized access and opacity. According to forecasts, by 2026, the market for cannabis packaging will reach $5 billion.
At the federal level, cannabis remains illegal in the United States, making it difficult for companies to obtain financing from large banks. However, credit unions and small banks help these companies. For example, 400 local banks and credit unions reported that the number of cannabis-related clients has more than tripled since 2014.
Because cannabis remains illegal at the federal level, companies do not have access to banking services and bank card payment processing. Now, thanks to the advent of specialized cryptocurrencies, it is possible to not need cash or a typical bank account. There are specialized cryptocurrencies created specifically for the marijuana distribution industry.
Companies and e-commerce sectors want to connect manufacturers and buyers. For example, Meadow offers consumers the option of making a prescription for medical marijuana through video chat.
Products containing cannabis are becoming increasingly popular. In 2016, Californians bought $180 million worth of cannabis products, accounting for 10% of all US cannabis sales. Moreover, according to the Green Market Report, this percentage increased to 18% by February 2018.
British alcoholic beverage manufacturer Diageo, whose brands include Smirnoff, Johnnie Walker, Guinness and Bailey’s, is in talks with at least three Canadian cannabis producers to develop a specific beverage. Constellation Brands recently announced an investment of $4 billion in Canopy Growth, increasing its share from just under 10% to 38%.
One last noteworthy fact, cannabis lawyers now exist to advise companies on everything from advertising strategies to business practices. The legalization of cannabis for industrial, recreational and medical purposes clearly led to the creation of many new professions.
(Featured Image by mohamed_hassan)
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