The medicinal cannabis space has been around in North America for quite some time with Canada leading the way for over ten years now. According to new data, it seems as though the medicinal marijuana industry has just begun, and can only expect to grow in the near future.
Research from the company Energias Market Research has shown that “the global medical cannabis market is expected to grow significantly from USD 8.28 billion in 2017 to USD 28.07 billion in 2024, at a CAGR of 19.1% from 2018 to 2024.” There are many different factors that have gone into this massive growth in the market. One of the most prominent of these is the growing demand for cannabis throughout the world. With new and promising research coming from the use of cannabis medicinally, more and more throughout the industry and beyond are supporting cannabis than ever before.
The report shows that there are other factors “including growing recognition of medical benefits, increasing demand for cannabis in the treatment of various diseases, and growing number of research and development activities.” The U.S. currently has 29 states with some sort of legalization of cannabis whether it be medicinal or recreational. In terms of purely recreational states, as many as nine in the U.S. have put in legislation. Many companies have been taking advantage of this new legislation to try and build businesses within the U.S., but the pseudo-legality has been an issue for some.
The states in the U.S. are subject to gain some of the most of the whole industry due to the high taxes for cannabis and its related products. One report suggests that “in order to collect $1 billion a year in taxes, the state will need to reach a projected $7 billion in annual legal recreational cannabis sales. At that rate, California would easily be the country’s largest legal marijuana market, as the entire legal cannabis industry in the U.S. is expected to pull in roughly $10 billion in total sales for 2017. That number would almost certainly get a boost in the coming years, as legal markets grow in California and other states, such as Nevada and Massachusetts.” These numbers may seem large, but the high and increasing demand for legal cannabis makes all of these numbers make sense.
Companies in the cannabis space have been growing due to this new and impending legislation such as Medical Cannabis Payment Solutions (OTC:REFG). REFG announced recently that they acquired the company SpeedyGrow, with licenses to continue growth in the state of Colorado. The company currently works with the extraction of CBD, but more demand for the raw plant means that they could be growing more cannabis in the near future. The CEO of Medical Cannabis Payment Solutions, Jeremy Roberts stated that “we weren’t initially anticipating entering this space. But after careful consideration, the opportunity to expand our footprint in the state-sanctioned cannabis space was too good of an opportunity for our shareholders to pass up.”
The example above highlights how many partnerships in the cannabis market are increasing the growth of the space as a whole. New partnerships have meant larger companies with more power to control the market. The cannabis industry is still however very much in its infant stages, but the partnerships are helping the market to break out of this mold. The hopes are high that the future of the cannabis industry will mean more partnerships, and easier access to the treatment that many rely on for their daily lives.