Medical cannabis market is projected to grow significantly from USD 8.28 billion in 2017 to USD 28.07 billion in 2024
Written By: Jen Neville
April 19, 2018
According to a report by Energias Market Research, the global medical cannabis market is projected to grow significantly from USD 8.28 billion in 2017 to USD 28.07 billion in 2024 and at a CAGR of 19.1% from 2018 to 2024. Factors driving the growth of the medical cannabis market include growing recognition of medical benefits, growing demand for cannabis in the treatment of various diseases, and growing number of research and development activities. Sales of recreational cannabis also expected to increase, as California's new recreational cannabis laws went into effect on January 1st, 2018.
The potential economic benefits from legalization are important and significant. Fortune reported that "in order to collect $1 billion a year in taxes, the state will need to reach a projected $7 billion in annual legal recreational cannabis sales. At that rate, California would easily be the country's largest legal marijuana market, as the entire legal cannabis industry in the U.S. is expected to pull in roughly $10 billion in total sales for 2017. That number would almost certainly get a boost in the coming years, as legal markets grow in California and other states, such as Nevada and Massachusetts."
Snipp Interactive Inc. is also listed on the TSX Venture Exchange under the ticker (TSX-V: SPN). On March 26th the company, "shared their perspective with The Wise Marketer (http://www.thewisemarketer.com ) on industry regulations and their impact on marketing in the Cannabis sector along with the use of technology for marketing in this industry.
The Wise Marketer bills itself as the only objective voice serving the $200 billion global loyalty industry. It has 20,000 plus web visitors per month who are high-level marketing executives, senior directors, and managers with day-to-day accountability for customer strategy and loyalty. It has more than 15 years of experience covering, commenting on, and educating loyalty practitioners with more than 11,000 active, engaged email subscribers from 50 countries around the world. It launched the Loyalty Academy in 2015 and is the only forum dedicated to educating loyalty professionals in existence. It also publishes The Loyalty Guide – one of the most respected digests for loyalty best-practices and case studies and holds the Loyalty Academy Conference each year, as the only live forum dedicated to exchanging high quality thought among loyalty practitioners.
The article titled "More than Buzz to Cannabis Marketing Resource" touches on the complications arising from an evolving regulatory framework and on the need to leverage experiences that companies like Snipp have had in the alcohol and pharma space to effectively use technology to meet marketing objectives given the challenges of staying compliant across jurisdictions with different regulations.
"The Wise Marketer is one of the most respected and followed resources for loyalty professionals worldwide. The fact that they are interested in covering what companies like Snipp are now doing to drive customer retention in the cannabis industry, points to the fact that the Cannabis industry has come of age and ready to contribute to the overall knowledge base for marketers," commented Atul Sabharwal, CEO, and Founder of Snipp. "Our proven technology solutions in regulated industries will help transform the way cannabis marketers connect with their consumers as well as with their supply chain. With our recently launched Cannabis Marketing Resource Center and hope to not only contribute to this discussion but also become a focal point for industry discussions and coordination to influence regulation for responsible marketing."
MPX Bioceutical Corporation is a multinational diversified cannabis company focused on the medical and adult use cannabis markets. Earlier this month, the company announced that the Company, through its wholly-owned U.S. subsidiary CGX Life Sciences Inc., has entered into a definitive limited liability membership interest and asset purchase agreement, dated and effective March 1, 2018 to, acquire 100% of the membership units of ABACA, LLC, Ambary, LLC, Tarmac Manufacturing, LLC and Tower Management Holdings, LLC. ABACA is a fully-integrated medical marijuana business licensed under the provisions of the Arizona Medical Marijuana Act, A.R.S. Title 36, Section 28.1 (the "AMMA") operating a dispensary under the trade name "The Holistic Center" in Phoenix, Arizona as well as certain real estate interests located at 21035 North Cave Creek Road, Phoenix, Arizona.
Golden Leaf Holdings Ltd., a Canadian company with operations in multiple jurisdictions including Oregon, Nevada, and Canada, is one of the largest cannabis oil and solution providers in North America, and a leading cannabis products company built around recognized brands. Golden Leaf cultivates, extracts and manufactures and distributes its products through its branded Chalice Farm retail dispensaries, as well as through third-party dispensaries. Recently, the company announced that it has signed a letter of intent with Blackshire Capital Corp., a Canadian Private Equity firm focused on the cannabis sector, to launch the Chalice Farms franchise model. This would be one of the first franchising deals of its kind in the cannabis space. Golden Leaf is presently working with Blackshire to complete the franchising documentation necessary to launch its cannabis retail franchising opportunity under the "Chalice Farms" brand in the U.S., Canada, and international markets. Golden Leaf and Blackshire are also in final discussions to form a jointly owned management company which, as the franchise, would manage and own the Chalice Farms cannabis retail franchises. The implementation of this potential partnership with BlackShire would be the first step in Golden Leaf's franchise program rollout.
Lexaria Bioscience Corp. has developed and out-licenses its disruptive delivery technology that promotes healthier ingestion methods, lower overall dosing and higher effectiveness of lipophilic active molecules. Recently, the company announced it has received a new Notice of Allowance from the United States Patent and Trademark Office ("USPTO") providing for "composition of matter" claims that protect the specific combination of substances which enable improved taste and bioabsorption properties of its DehydraTECH™ technology for the delivery of cannabinoids. This is a significant addition to Lexaria's existing manufacturing "method of use" patent rights previously granted. Lexaria has additional patent applications that remain within the USPTO process, of both the composition of matter and process varieties. Lexaria will continue to develop and strengthen its patent portfolio in the USA, Canada, and internationally and expects further patent awards this year. As its patent portfolio increases, Lexaria will be better able to commercialize its technologies and defend its intellectual property.
India Globalization Capital, Inc. has two lines of business. In addition to its cannabis pharmaceutical business, it also operates a legacy infrastructure and commodity trading business. Recently, the company announced that Alzheimer's patients in Puerto Rico will be the first in the United States to obtain Hyalolex, IGC's proprietary cannabinoid-based formulation aimed at relieving many of the symptoms of Alzheimer's Disease, such as agitation, anxiety, sleep disorder, as well as caregiver distress, among others. Pursuant to an agreement between IGC and DaMa Pharmaceutical and its affiliates, Hyalolex will be on the shelves in April, and available to patients in ten of Puerto Rico's 30 dispensaries, including the two premier dispensaries in San Juan, the largest city in Puerto Rico. Hyalolex is the Company's lead product but it is in various stages of development of other cannabis-based medical products.