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Cannabis Products Market Value Expected to Reach $36.2 Billion by 2022

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According to a new report from The Business Research Company, the global cannabis products market was valued at about $12.7 billion in 2018, and it is expected to grow to USD $36.3 billion at CAGR of 29.9% through 2022.

With growing medical applications in conditions such as nausea and vomiting, glaucoma, epilepsy, and asthma, among other things. Therefore, many countries have legalized the use of cannabis for medical applications. Some medical applications of cannabis include, but not limited to treating cancer, chronic pain, depression, arthritis, diabetes, glaucoma, migraines, epilepsy, AIDS, Alzheimer's disease and Parkinson's disease.

What's more, according to Harvard Health, around 85% of Americans supported legalizing marijuana, and at least several million Americans were using it in 2018.

With the growing adoption of cannabis on state- and consumer-level, cannabis market value expectation of USD $36.2 Billion in 2022 with a CAGR of 29.9% isn't too far-fetched.

Notable Players

In May 2018, Aurora acquired MedReleaf for $2.5 billion. This acquisition will benefit Aurora in increasing its annual production capacity of marijuana from 32,300 kgs to 570,000. MedReleaf Corp is a pharmaceutical company involved in producing and selling cannabis-based pharmaceutical products in Canada.

Solar cannabis cultivation is an emerging trend in the cannabis products market. As cannabis cultivation requires a large amount of energy for lighting, heating, air-conditioning, and dehumidification systems, cannabis products manufacturing companies are investing in solar cannabis cultivation. This is mainly a result of legalizing cannabis products in various states of the USA, which is continuously increasing the consumption of energy and leading cannabis manufacturers to opt for solar cannabis cultivation. For instance, in 2018, Aurora acquired 71 acres of land in Medicine Hat, Alberta, and installed a high-technology hybrid greenhouse cannabis production facility. Source.

Expanding Cannabis Product Lines

As the cannabis industry continues to develop, consumers and businesses are constantly creating new ways to ingest cannabis. For instance, in legal markets such as Colorado or California, extracts and concentrates have become increasingly popular because of their potency and immediate effects.

While extracts and concentrates are widely popular, vendors have incorporated cannabis into edibles and beverages.

The cannabis-infused beverage industry is experiencing significant strength because of large beverage corporations entering into the market. Notably, large alcohol companies have set their sights on the cannabis market because of its declining primary revenue drivers. As a result, many companies are adding cannabis-infused beverages to their product lines in order to combat lower sales numbers that are a result of the declining alcohol consumption levels.

However, to note, most companies are predominantly only adding CBD to their beverages because of regulatory restrictions on THC. Moreover, companies are marketing CBD-infused beverages as health and wellness products rather than recreational or relaxation products. And while the infused beverage market is already experiencing a surge in momentum in legal regions, its expansion into new sectors is expected to spur its growth. According to Fior Markets, the global cannabis beverages market is expected to reach USD $4.56 Billion by 2025 with a CAGR of 16.8% during the forecast period from 2018 to 2025. Source.

 

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