The total worth of the marijuana market will reach US$166 billion by 2025, according to a market report made public on Tuesday (February 26) from Euromonitor International.
The firm expects legal cannabis to represent over 70 percent of the total market globally by the target date.
Zora Milenkovic, head of drinks and tobacco at Euromonitor International, said cannabis will serve as an ingredient in several consumer goods.
The researcher highlighted food, beverages, beauty, health and tobacco as the ones with highest potential of disruption from the growing cannabis market.
At the same time, the industry will continue to experience exponential growth while alcohol and tobacco will grow at a much slower pace, the report says.
“From 2018 to 2025, legal cannabis is estimated to grow more than 2,000 percent globally, compared to alcoholic drinks at 1.4 percent and tobacco at 1.2 percent,” the research firm indicated.
As the cannabis legalization movement continues across the globe, Canadian marijuana firms with first mover status in the industry have moved forward with expansion plans internationally.
Through joint ventures, acquisitions and other business tactics, Canadian cannabis companies pursue ventures across the legal marijuana map.
“Euromonitor International expects global sales of packaged food with CBD to double over the next two years, further blurring the lines between consumer health and food,” the research firm wrote.
Cannabidiol (CBD) has picked up in consumer interest as the product, derived from hemp, finds its way to the US market.
Cannabis companies across the US and Canada have started pursuing operations involving hemp production to enter the CBD market.
Projections for global market value continue rising
Vivien Azer, managing director and senior research analyst specializing in the beverage, tobacco, and cannabis sectors for Cowen, indicated US cannabis sales will reach US$80 billion by 2030.
Similarly, research firm Seaport Global issued its own cannabis report and initiated coverage in several stocks in the market.
“From a little over $12B in global value today, we see the market ultimately evolving to almost $630B in due time,” the firm indicated according to a report from New Cannabis Ventures.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Mergers and acquisitions (M&A) in cannabis space have helped boost the industry to new levels.
Strategic sale of non-core assets by Lobe adds non-dilutive capital and shareholder value
Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) is pleased to announce, further to its press release dated February 23, 2021, that it has completed the sale to Ionic Brands Corp. (“Ionic Brands”) of Lobe’s non-core cannabis assets relating to Washington-based Cowlitz County Cannabis Cultivation Inc. (“Cowlitz”) held by Lobe’s subsidiary vendor, Green Star Biosciences Inc. (the “Transaction”).
Seattle Area Grocery Chain Metropolitan Market to Begin Carrying KOIOS and Fit Soda on March 22, 2021
Adding to its existing presence on the west coast of the United States, all five KOIOS™ flavours and all four Fit Soda™ flavours will be carried in Metropolitan Market stores beginning on Monday, March 22, 2021. Serving the Seattle-Tacoma area (population 3.87 million), Metropolitan Market is one of five chains under its parent firm Good Food Holdings, which has a total of 51 stores in California, Oregon, and Washington State.
Koios Beverage Corp. (CSE: KBEV; OTC: KBEVF) (the “Company” or “Koios”) is pleased to announce that beginning on Monday, March 22, 2021, Koios’ entire line of canned beverage products will be sold at all locations of Metropolitan Market, an urban format supermarket chain in the Seattle-Tacoma area of Washington State. In Q1 2021, the Company announced multiple placements of its beverage products with regional grocers in markets on the west coast of the United States including Market of Choice in Oregon Jensen’s in Southern California and major natural grocery chain Sprouts Farmers Market which has a substantial west coast presence with over one third of its locations (360+ stores across 23 states) in California as well as Washington State 1 . The Company has also recently announced other developments relating to its expansion efforts being undertaken in 2021 such as an in-house beverage canning facility and distribution agreements with regional and national wholesale partners.
Pineapple Express Delivery Partners with CannTrust to Offer Same-Day and Next-Day Delivery for estoraTM Medical Cannabis Patients in Ontario
Ensuring estoraTMpatients have seamless access to their high-quality medical cannabis products
World-Class Extractions Inc. (CSE:PUMP)(FRA:WCF)(OTCQB:WCEXF) (the “Company” or “World-Class”) is pleased to announce that its subsidiary Pineapple Express Delivery Inc. (“Pineapple Express Delivery” or “PED”), a leading logistics technology company offering compliant and secure delivery of controlled substances and regulated products, has partnered with CannTrust Inc. to bring same-day and next-day delivery to estoraTM medical cannabis patients in Ontario
American cannabis sales hit US$17.5 billion in 2020, a research group’s new study shows.
Meanwhile, a Canadian cannabis producer began offering CBD beverages in the US, another move that shows how interested Canadians are in the overall US cannabis market at the moment.