Cannabis Industry Sees Continued Growth Across Various Markets

LOS ANGELES–, The cannabis industry has witnessed a significant expansion in recent years, finding applications in diverse sectors such as cosmetics, pharmaceuticals, and food and beverages, according to a report from Grand View Research. The market’s upward trajectory can be attributed to the increasing legalization of cannabis, coupled with a growing acceptance of its medicinal use. Extensive research into the plant’s therapeutic properties has also contributed to its widespread adoption as a treatment for various chronic conditions, notably chronic pain and chemotherapy-induced nausea.

Government authorities have taken steps to legitimize medical cannabis, exemplified by the approval of cannabis-derived drugs like Epidiolex and Cesamet by the Food and Drug Administration (FDA). These medications have proven effective in managing seizures and alleviating chemotherapy side effects, respectively. Moreover, legislative moves, such as the U.S. House of Representatives’ decision to remove cannabis from the Controlled Substances Act of 1970 in December 2020, have created significant growth prospects for the market. Projections indicate that the U.S. cannabis market, valued at USD 13.2 billion in 2022, is poised to expand at a compound annual growth rate (CAGR) of 14.2% from 2023 to 2030.

Active companies operating in this flourishing market include Leafbuyer Technologies, Inc. (OTCQB: LBUY), Canopy Growth Corporation (NASDAQ: CGC) (TSX: WEED), HEXO Corp. (NASDAQ: HEXO) (TSX: HEXO), SNDL Inc. (NASDAQ: SNDL), and Tilray Brands, Inc. (NASDAQ: TLRY) (TSX: TLRY), each contributing to the sector’s ongoing development.

Positive Consumer Attitudes Drive Cannabinoid-Based Product Penetration

The increased prevalence of cannabinoid-based products can be attributed to consumers’ positive attitudes towards their consumption, as highlighted in the Grand View Research report. In the United States, approximately 64% of adults were familiar with CBD and its products, according to the Gallup Survey in 2022. The SingleCare Survey in 2020 revealed that about one-third of Americans had utilized CBD. Additionally, the market growth is bolstered by the entry of numerous companies catering to the rising demand for cannabis. The robust startup ecosystem in the U.S. further stimulates market expansion, while favorable cultivation norms and the legalization of medical marijuana have transformed major states such as Florida, Oregon, Nevada, California, Washington, and Colorado into significant cannabis producers.

Noteworthy developments within the industry this week include Leafbuyer Technologies, Inc.’s announcement of a 31% increase in quarterly revenue and a 35% boost in profit margins. Leafbuyer, a prominent cannabis technology and marketing platform, experienced substantial growth that surpassed the overall market’s expansion rate. Concurrently, Canopy Growth Corporation entered into an exchange agreement with Greenstar Canada Investment Limited Partnership to retire CAD 100 million (approximately USD 73.9 million) of its outstanding 4.25% unsecured notes due 2023.

Furthermore, Tilray Brands, Inc., a global cannabis and consumer packaged goods company, introduced a new line of infused teas under its cannabis wellness brand, Solei. The tea collection offers wellness-oriented, caffeine-free options, infused with unique CBD, CBN, and THC formulations, allowing consumers to personalize their self-care routines. Additionally, HEXO Corp. obtained an interim order from the Ontario Superior Court of Justice for a special meeting of its shareholders to approve the company’s acquisition by Tilray Brands, Inc., scheduled for June 14, 2023.