Cannabis — The Hottest Investment Opportunity in 2021
As per CNET, cannabis has been decriminalized in 32 states till date. Medical sales are legal in 35 states, while recreational sales in 15 states, in addition to Washington, D.C. Medical sales of CBD have been legalized in seven states. Maryland is proposing legalization, while North Dakota recently approved a legalization bill.
According to Maryland State Delegate Jazz M. Lewis (D-Prince George’s), the HB 32 bill will bring equity to a new industry, create employment opportunities, and attract millions of dollars in annual tax revenue.
With cannabis being used by people from all walks of life and varied ages and more people are likely to use amid growing legalization, the plant-based miracle product is poised to offer the hottest investment opportunities in the ongoing year.
According to a research from The Brightfield Group, the global size of the legal cannabis, CBD, and hemp sector is estimated to rise from $7.7 billion in 2017 to $31.4 billion in 2021. Currently, the recreational market accounts for just 37% of the total global market, but it will increase to 57% by 2021. As per industry analyst BDS Analytics the sales of CBD products is likely to reach $20 billion by 2024. This clearly shows the rising trend of CBD products’ sales, which forecasts a good return.
The CBD-infused beverage market, which is rapidly gaining traction in the cannabis industry, could offer an investment opportunity of $3 billion to investors. The surge in the CBD infused beverage is mainly because it is seen as a healthier alternative to other cannabis products and consumers are ready to invest in premium products that can provide therapeutic benefits and help their cognitive wellness.
As per a report by Data Bridge Market Research, CBD infused edibles market is expected to grow at a compound annual growth rate (CAGR) of 25% between 2020 and 2027. The growth will be driven by rising social acceptance, adoption of CBD in various verticals, growing popularity of recreational cannabis. The edibles include chocolates, coffee, baked goods, gums, and candies. Among the most popular are CBD candies that contain cannabidiol oil and come in different flavors, colors, shapes, and concentrations of CBD. These are non-psychotropic (free from Tetrahydrocannabinol) and help in relieving pain, inflammation, depression, and induces sleep.
When it comes to the adoption of CBD across verticals, the demand for CBD hand sanitizers is rising particularly after the COVID-19 pandemic and the global market for the product is expected to register huge growth in the current year.
Owing to the rising consumption of CBD oil, the outlook of the global CBD oil market is also positive with the growth is projected at 38.4% by the ‘Global CBD Oil Market 2021 Industry Research Report.’ The APAC region has the highest market for the oil, followed by North America and Europe. The market penetration has increased in the U.S., the Netherlands, and Japan.
A report released by Grand View Research indicated that the size of the global cannabidiol market is projected to grow at a CAGR of 21.2% from 2021 to 2028 and reach USD 13.4 billion by 2028. The growth will be fueled by concentrate, tinctures, capsules, oils, and topical solutions such as lotions, lip balms, slaves, and face wash.
Apart from the growth trends across cannabis verticals, new discoveries and insights into cannabis products and their potential health benefits are likely to draw in more users and investors into the industry. With all this, the industry is set to open up more investment prospects for investors who are looking for a good return on their investments.
The Cannabis Investing Forum will host a virtual webinar on March 18, 2021, in which leading investors and industry speakers will discuss business opportunities in the CBD, cannabis, and hemp industries.