The valuation of the global cannabis market amounted to $7.7 billion in the year 2019. The market is expected to grow at a rate of 18.1% during the next few years. One of the key factors in the growth of the marijuana market is the legalization of cannabis in different countries. The use of marijuana for medical purposes is gathering momentum across the world due to this legalization in different countries. Medical cannabis can be used for the treatment of chronic conditions such as arthritis, cancer, and other neurological problems such as depression, anxiety, Parkinson’s, and epilepsy.
Legalization of cannabis
Decriminalization and legalization of medical marijuana in certain countries have led to a significant reduction in the black market as people are resorting to the legal purchase of marijuana for adult and medical use. Government income via taxation is also considered as an opportunity by many countries to make greater revenues. For example, the total tax revenue collected in California was around $345 million in the year 2018. This has attracted many local governments to provide funding to many development programs regarding infrastructure and education.
The business of legal marijuana is creating several job opportunities with close to 10,000 licenses being issued in the U.S. alone that includes manufacturers, cultivators, deliverers, dispensers, and laboratories. Due to these factors, the legalization of marijuana has led to a rise in demand within these countries and gradually eroding the presence of the black market.
Region-wise development of cannabis
In the year 2019, North America dominated the cannabis market with a whopping market share of around 89%. Several factors were affecting this such as liberal government policies and the legalization of marijuana for medical and adult-use in the U.S. and Canada. By the year 2019 use of cannabis had become legal within 33 states territories such as Guam, Puerto, and Columbia in the U.S. In addition to this, the Farm Bill introduced in 2018 legalized hemp and products based on hemp in America. It enhanced the regional product demand further. But, the legalization of medical cannabis in Europe is accompanied by strict rules and regulations about cultivation and sales placing restrictions on regional growth.
Other promising markets for the growth of the cannabis industry are Germany, Australia, Colombia, Poland, Israel, and Uruguay. Israel is leading the way at the moment providing knowledge transfer and technology to other markets around the world. The vast knowledge it possesses about the agro-business has helped the country to create new technologies for developing new strains and greater yields. Some Latin American countries such as Colombia and Uruguay are working towards turning into suppliers of cannabis in the global market. The U.S. market remains closed for export and these countries are seizing the opportunity for exports.
Some other newer markets are entering the field of cannabis such as Thailand and the U.K. They are developing a legal structure for the cannabis business as their revenues are expected to rise quickly. Other countries such as New Zealand and South Africa are considering the legalization of medical cannabis and they might emerge as potential markets in the upcoming years. There is cut-throat competition among existing players because very few cannabis companies have the technology, legal clearances, and financial resources to get into the large-scale making of medical cannabis. The research funding provided for this industry may also play a significant role in encouraging more startups to develop innovative products.
Using cannabis consulting firms for leverage
If you have an established cannabis business that has run into major roadblocks in the field of profitability, compliance, or location you can use the services of a cannabis consulting firm. It can step in and develop a strategy for turning around the company out of troubled waters into a stronger than before business. If your cannabis business is thriving and you are thinking about upgrading the software, adding more products and services, or moving into a new location the cannabis consulting company can efficiently help you. There are many things these consulting firms can advise you about such as selling, buying, or merging the cannabis business. They can also help you with legal compliance, branding, and development of standard operating procedures (SOP).