Cannabis based drugs (CBD) contain Tetrahydrocannabinol (THC), which is legalized in various countries such as Canada, Austria, Chile, Israel, Belgium, etc. It is one of 113 chemicals, that are founded in the cannabis plant, and considered as a cure to burden of modern life. According to National Institute on Drug Abuse for Teens, Government of the 25 states in the U.S. have allowed the people use cannabis drugs, as per doctor recommendation. Further, state of Columbia has passed laws for legalization of cannabis in medicine, owing to its positive impact on treatment of diseases such as cancer, AIDS etc. The Drug Policy Alliance considers that cannabis medicine to be safer and thus should be legalized and regulated just like tobacco and alcohol. In California, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) creates general framework for the regulation of adult-use and commercial medicinal cannabis.
Snapshot of the U.S. Cannabis retail sales
As per Marijuana Business Daily, the total demand for recreational cannabis in the U.S. alone is expected to be between $40-45 billion— exceeding the demand from wine, beer, and organic food industry. Moreover, as per Yahoo Finance, the Federal Government of the U.S. and other regulatory bodies are involved in monitoring and testing procedures of medical cannabis and cannabis infused products.
Cannabinoids or Medical Cannabis are pharmaceutical drugs used to treat vomiting and nausea related with anorexia, cancer chemotherapy, cachexia in HIV/AIDS, chronic diseases—especially neuropathic pain, spinal cord injuries and spasticity in multiple sclerosis.
As per the statistics from United Nations, 3.8% of the global total population (approx. 266 million) use cannabis at least once in a year. According to American Medical Marijuana Association, the number of one-time users of cannabis are anticipated to reach over approximately 419 million by 2022. Moreover, increasing awareness about usage of cannabis as medicine, and legalization of cannabis in someregions are some major market forces that driving the usage of cannabis across the globe. According to United Nation Office on Drugs and Crime (UNDOC), over 60% of the cannabis users across the globe are adults aged between 25-65 years. Same source quoted that Iceland (18%), USA (16%), Nigeria (14%), Canada (12%), and Chile (11%) has largest number cannabis users, across the globe. Also, in Europe, Cannabis account as a largest illicit drug being used. As per European Monitoring Center for Drugs and Drug Addiction (EMCDDA), the number of cannabis users are high in countries like France, Italy, Czech Republic, Spain, Denmark, Netherlands, Finland and Estonia. Government and other regulatory bodies are looking forward to legalize cannabis use across the globe in coming years.
Since 2010, the Federal government of the U.S.was highly investing in research projects related to testing of marijuana-based treatment for Alzheimer’s, cancer, HIV/AIDs and epilepsy. In 2015, the Federal Government of the U.S. announced a research grant of more than $70 million via National Institute of Health to the Universities and Public Research Institutes that were supporting the marijuana research. Amongst the total funding, ~30% of the funding is focused upon developing cannabis plants that consist oflow CBD, high THC, low THC, high CBD, and equal strength of THC and CBD. As per European Weed Research Society, there are more than 21 research projects related to medicinal aspects of cannabis are currently being carried out across Europe.
China and India are expected to be the largest market for medical cannabis by 2020, owing to increase in number of chronic diseases and increasing population with large base. Both countries are making regulatory shift in policies concerned with the usage of marijuana. In 2016, in India, Ministry of Healthcharted more than 30 proposals to legalize cannabis oil extraction to treat cancer. Moreover, Ministry of Commerce and Indian Regulatory bodies are looking forward for policy adjustments in FY 2017for medicinal cannabis market. Hence, Government of India is looking forward to attract investment from companies that manufacture medicinal cannabis in India through policy adjustment.
In order to create awareness about the usefulness and advantages of cannabis medicine, several awareness programs were organized globally. For instance: Medical Cannabis Awareness is a registered charity group located in New Zealand with an objective to promote and provide medical cannabis in New Zealand. On April 20, 2017, Caron Foundation organized Takeback 420, which was a cannabis awareness programtowards engagement and transformation to empower youth to make healthy choices. This program was focused uponspreading information related to impact of marijuana usage. Moving forward, Prevention Plus Wellness organized a Marijuana awareness Media Campaign to rectify the misbeliefs and misconceptions about usage of cannabis, to create awareness about existing laws and regulation of cannabis medicine, etc. On December2016, New Mexico Department of Health also started Medical Cannabis Program to create awareness among patients. On September 2016, Silicon Valley Marijuana Awareness Conference was arranged to create awareness about facts, myths, and usage of cannabis.
The CBD market is highly concentrated from nature. The CBD market will offer opportunities for market players during the forecast period. The CBD Market research report offered by Report Ocean will offer a complete competitive landscape of major market players present in the market, some of the companies are enlisted below: