OptimumSpectrum wrote: There has been many evaluations, predictions and assertions towards the potential revenue generated by the new evolving industries we are currently witnessing before our eyes. I thought it would be interesting to calculate the potential market size that CROP has already thrown itself into, for each individual sector of their products, on each individual scale. There is a lot of reading, but it is all great information, in my opinion. Enjoy
Cannabis
Cannabis producers could be chasing global market worth $194 billion in seven years: BMO report
Cannabis sales growth in North America. It is important to point out, that Mexico has just legalized recreational sales of marijuana just yesterday, as well as UK legalizing medical marijuana. There are all very major milestones in the globalization of acceptance in a plant that only heals.
Will the US be next to legalize? All indicators point to yes....well almost all indicators.....
Market share for each individual state in 2020. As you can see, the management team at CROP have been very strategic in their positioning of locations for marijuana production, with California and Washington taking up over 1/3 of the US revenue generated.
California - 39.54 million residents (2017)
California Cannabis Market Expected to Reach $5.1 Billion Market Value
The cannabis market could triple in size in the next four years, according to Arcview Market Research and BDS Analytics new report, 'The State of Legal Marijuana Markets'. In fact, by 2022, the global cannabis market could be worth as much as $32 billion, a three-fold increase in just five years with the U.S. expected to fuel much of that growth with an expected market value of $23.3 billion. Much of the current growth we're seeing comes from California's cannabis market, which is expected to exceed $5.1 billion market value in the next year after legalizing its recreational use on January 1, 2018.
Washington - 7.406 million residents (2017)
7 States Could Have $1 Billion Marijuana Markets By 2022 Washington may actually reach the $1 billion club this year. The state spent $984 million on cannabis last year, so unless they see no growth this year, they'll probably hit $1 billion. Washington though is only expected to grow a little over the next few years as they're only projected to spend $1.5 billion on cannabis in 2022.
Nevada - 2.998 million residents (2017)
Not the largest population, however
Nevada marijuana sales blew away projections in first year.
Nevada dispensaries sold nearly $425 million worth of recreational marijuana and pulled in nearly $70 million in tax revenue in the state’s first full year of sales, officials announced Tuesday.
Including recreational and medical marijuana as well as marijuana-related goods and accessories, Nevada stores eclipsed a half-billion dollars in sales, just under $530 million, according to figures released Tuesday by the Nevada Department of Taxation.
That dwarfs first-year sales seen in other states, and significantly outpaced Nevada’s own projections for the budding industry.
Jamaica - 2.89 million residents (2017)
Now the Jamaican market also doesnt exactly allow for a major capitalization in it's own country, based off the population size, however the tourist marijuana market is fairly decent, and the possibilities of exports to other countries is rapidly expanding. The cost to grow in Jamaica will be very minimal as well, which is Im guessing why CROP has chosen this destination for expansion.
Jamaica makes first shipment of medical marijuana to Canada
Jamaica has made its first shipment of medical marijuana extract oil to Canada.
In making the announcement, Minister of Industry, Commerce, Agriculture and Fisheries Audley Shaw, “Jamaica is uniquely positioned to be a global player and we are committed to providing the leadership and resources required for opening the international markets including Canada and Europe for our licensed and regulated Jamaican companies.”
Exciting times for cannabis.
Hemp / CBD / Extracts
New Report Predicts CBD Market Will Hit $22 Billion by 2022
For years, experts have predicted that if the cannabis industry expands at its current rate, the American market will reach $20 billion by 2020. But it turns out that one market is spinning off into a mega-industry of its own: according to a new estimate from cannabis industry analysts
the Brightfield Group, the hemp-CBD market alone could hit $22 billion by 2022.
There’s been an invisible cap because of federal restrictions. One thing that could help remedy this is the 2018 Farm Bill, which would amend the term “marihuana” — a term currently found in the 1972 Controlled Substances Act — to exempt hemp, which is defined as a cannabis plant containing less than .3 percent THC. If the bill passes, it would open a huge new industry to farmers across the country.
According to the firm’s projections, there would be increases in just about every sector that sells CBD — from dispensaries to smoke shops to medical companies. But perhaps the biggest push, according to Gomez, would be from big-box retailers and national chains who have been eager to get in on the lifestyle craze but have felt stifled by the current, muddy regulations.
CBD is growing faster than cannabis in the U.S. and will soon be a $22 billion industry. It’s been flying under the radar but is set to explode having profound impacts on CPG and Pharma.
Will CBD Entirely Eclipse The Cannabis Market? "Between 2017 and 2018, the U.S. hemp-derived CBD market has nearly doubled in size, but the five-year growth projections for this market are now dramatically higher than they were a year ago. This is because the full legalization of hemp-derived CBD is now a real and likely prospect following Republican Mitch McConnell’s recent proposal of the Hemp Farming Act of 2018 (Farm Bill). This legislation – likely to pass later this year – would clearly and unambiguously legalize hemp as well as its derivatives, extracts and cannabinoids, including hemp CBD."
This projection is not necessarily accurate because it fails to recognize that if the Hemp Amendment passes, states are in no way obligated to create hemp programs. States can deny having an industrial hemp program entirely.
"Not every state is forced to have a hemp program, elucidates Buccola. "They are permitted to."
The report continues, that even if the Farm Bill is tied up in a partisan battle over the Supplemental Nutrition Assistance Program (SNAP), "The will for hemp legalization is unchanged and a similar Hemp Bill will be expected to pass after the 2018 elections. Previous market forecasts assumed the status quo would continue, and the hemp CBD grassroots movement would remain as such, with growth limited by a burdensome regulatory system and minimal retail and marketing channels. Instead, our forecasts now anticipate the bill passing and paving the way for major retail chains, manufacturers, and investors to enter the market and drive rapid growth.
As for other extracts or concentrates- shatter, budder, distillate, oils, etc., I know from personal experience that this the avenue of the market is where the top dollar earnings are to be made. Once you switch from flower to concentrates, it is very difficult, if not impossible, to transition yourself back to bud, because you dont get high after elevating your tolerance levels so much! It is also a lot grosser tasting to smoke a joint after, and the longer people continue their experience with concentrates, it will eventually become the new norm for most advanced users.
This is why I am so pleased with this weeks extraction facility news release, because I know for a fact that this is the market they need to corner in every way possible.
Emerging Opportunities in the Cannabis Extracts Market
Canada’s cannabis market is witnessing steady growth with the opening of the legal adult-use market and is expected to continue that stellar growth in the years ahead. While big leafy buds tend to be the first image that comes to mind when the topic of cannabis arises, it’s the cannabis extracts market that’s really killing it in the market.
According to the most recent Health Canada statistics, sales of cannabis oil in the first three months of 2018 outpaced those of dried flower by 56 percent. In terms of year-over-year (YOY) growth for the two forms of cannabis, extracts are clearly the winner with a sizable increase of 82 percent over the same period in 2017 compared to a meager 13 percent in YOY performance for dried flower.
Under a regulatory framework that has only allowed for the medical use of cannabis, it’s no surprise that the cannabis extracts market would dominate. Patients looking to ease pain, anxiety or inflammation to improve their health and wellbeing are also more likely to want to avoid the negative health impacts of smoking marijuana, making use of a more discreet treatment option. Cannabis extracts also allow medical practitioners to better control proper dosing for patients.
Cannabis Infused Beverages
The CEO of Molson Coors says the market for cannabis-infused beverages could be worth billions.
Speaking on Wednesday during the company's third-quarter earnings call, CEO Mark Hunter said the cannabis market could total $7 billion to $10 billion in Canada alone.
Nonalcoholic cannabis-infused beverages could account for as much as $3 billion, or 30% of the total market.
Molson Coors' foray into the cannabis space comes as beer sales have declined slightly across the industry.
If the market in Canada for cannabis infused drinks is already poised to be $3 billion, there is no telling how high the demand will be in the US. $30 billion??
Vaporizers
Personally, I dont see the Air Chronic vape taking over the massive influx of vape pens out there on the market, but it is an uptrending market, nonetheless!
In conclusion, there really is no knowledge of what the cap may be for any of these industries that CROP is positioning itself up for growth in, but for now, each of them are all on a major upswing. It is just nice to see the management team so focused on the areas which I believe will flourish the most, in the most cost effective locations with highest growth rates.