Global Cannabis Market Revenue Is Expected To Reach $76 Billion By 2027
PALM BEACH, Fla. – The cannabis business is one of those atypical industries that actually flourished because of the pandemic. The global worldwide market has significantly grown in all its segments. A recent report from statista.com projected that: “Revenue in the Cannabis market is projected to reach US$47.20bn in 2023; Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 12.69%, resulting in a market volume of US$76.12bn by 2027; In global comparison, most revenue will be generated in the United States (US$32,870.00m in 2023); and In relation to total population figures, per person revenues of US$332.30 are generated in 2023.” The report continued: “The maturity of the Cannabis market varies across the globe mainly due to differing legal environments and public attitudes towards cannabis. Some countries such as Canada and the United States have adopted fully regulated frameworks that allow cultivation, consumption, and retail distribution of various cannabis products. There are other countries that have more limited frameworks that allow the cultivation of cannabis, but have not legalized retail sales (e.g., South Africa). Regulations can also differ regarding how cannabis is used.
Some countries allow consumption of products that contain high tetrahydrocannabinol (THC) strictly for medical use, while there are other countries that also permit the consumption of high THC products for recreational use.” Active Companies from around the market with current developments this week include: Leafbuyer Technologies, Inc. (OTCQB: LBUY), SNDL Inc. (NASDAQ: SNDL), Tilray Brands, Inc. (NASDAQ: TLRY), Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON).
“Legalization of cannabis is an important source of economic growth as it contributes to the growing tax revenue, increasing demands on the construction industry and to the creation of new work places. In addition to economic benefits, legalization of cannabis leads to more transparent tracking of its supply chain and therefore reduces the counterfeiting activities and overall criminal rates. The majority of consumers will shift from illicit markets to legal ones and potential users will be more eager to use cannabis as it will not be subject to penalties. We believe that loosening of legal restrictions in the coming years, rising demand and social acceptance as well as increasing investment flows in infrastructure, technology, and real estate around the world will lead to considerable growth in the overall market. COVID-19 has also contributed to the higher usage of cannabis mainly due to increased levels of stress and anxiety along with lack of social isolation.”
Leafbuyer Technologies, Inc. (OTCQB: LBUY) BREAKING NEWS: Leafbuyer Technologies, Inc. Announces Results: 45% increase in Quarterly Revenue and First Profitable Quarter as Public Company – Leafbuyer Technologies, a cannabis technology and marketing platform, announced that quarterly revenue rose 45% year over year in the quarter ending December 31, 2021. The company also announced that it achieved profitability for the quarter.
The financial data reflects the GAAP revenue booked in the quarter versus the same quarter of the previous year.
- Profitable: Net Income of $95,397 in Q2 from a Net loss of $1,373,858 in the prior year
- Revenue rose 45% from $923,829 to $1,341,750 in the second quarter of fiscal year 2022
- Gross Profit increased 174% from $261,770 to $716,146 in the same period
- Operating Expenses decreased 23% from $750,675 to $579,978
Kurt Rossner, Chief Executive Officer of Leafbuyer, stated, “We achieved the best quarter in the Company’s existence, even though we streamlined costs and automated many systems. Our growth was significantly higher than the industry average and we are now one of the few publicly traded cannabis marketing firms that are profitable.
In the industry developments and happenings in the market, this week include:
SNDL Inc. (NASDAQ: SNDL) recently announced the completion of the previously disclosed acquisition of all of the issued and outstanding common shares of The Valens Company Inc. (Nasdaq: VLNS), other than those held by SNDL and its subsidiaries, pursuant to a plan of arrangement under the Canada Business Corporations Act, for total consideration of approximately $138 million consisting of common shares of SNDL and assumption of Valens’ $60 million non-revolving term loan facility. All financial information in this press release is reported in Canadian dollars unless otherwise indicated.
With approximately $262.5 million in net cash and no debt, SNDL will continue to have one of the strongest balance sheets in the North American cannabis industry. SNDL will also have the highest pro forma consolidated net revenue among all Canadian cannabis companies based on the last fiscal quarter of each company on an annualized basis. The combined company will operate as SNDL Inc., headquartered in Calgary, Alberta.
Tilray Brands, Inc. (NASDAQ: TLRY), a global cannabis-lifestyle and consumer packaged goods company recently announced the expansion of their best-selling Good Supply cannabis brand portfolio and the launch of their latest flower campaign. The brand’s latest product releases include larger packs of pre-rolls, new pre-roll strains, and new hash and milled flower products, available in select provinces across Canada.
Good Supply’s latest product lineup includes: Orange Frosting Flower: Full of orange and floral aromas thanks to its rich and unique terpene profile, this new Sativa-leaning Hybrid delivers on uplifting enjoyment. Available in Ontario only in 14g. Daily Grind Milled Flower: The Daily Grind was designed to be as easy as it gets, because let’s face it, life is hard. Whole flower buds are milled to be a consistent and versatile size. Available in Alberta in 30g, and Ontario, Manitoba and Saskatchewan in 14g. Party Pack Pre-Rolls: Created for the convenience of the daily cannabis user, Good Supply’s new 10 and 14 pack pre-rolls are available in Sweet Berry Kush (Indica) and Orange Frosting (Hybrid) strains. Available in Ontario, Alberta, Manitoba, and Saskatchewan.
Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), the Canadian company opening the world to cannabis, recently announced its financial and operational results for the fiscal second quarter ended December 31, 2022. As a reminder, Fiscal 2023 is comprised of three quarters ending March 31, 2023.
“We are pleased to have delivered on our commitment to achieve positive Adjusted EBITDA in Q2 2023, following a tremendous effort to realize approximately $340 million of total annualized savings since February 2020. We have right-sized our business while remaining the #1 Canadian LP in global medical cannabis revenues, and having demonstrated organic quarter over quarter revenue growth across all of our cannabis segments during Q2 2023. Additionally, our robust balance sheet remains in a net cash position which puts it among the strongest in the industry, and we continued to make significant strides in reducing our debt in the recent quarter,” stated Miguel Martin, Chief Executive Officer of Aurora.
Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) recently announced that it will hold its 2022 fourth quarter and full-year earnings conference call on Tuesday, February 28, 2023 at 8:30 a.m. ET. Cronos’ senior management team will discuss the Company’s financial results and will be available for questions from the investment community after prepared remarks.
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