Considering increasing sales of CBD-derived products in retail stores, a new report from Global Market Insights estimates the global market valuation for CBD will cross $89 billion by 2026.
PALM BEACH, Florida, June 24, 2020 /PRNewswire/ -- Of the more than 85 cannabinoids so far identified in the cannabis plant, CBD is the second most common after tetrahydrocannabinol (THC) but is in the news more and more every day. Global Market Insights, Inc. has recently added a new report on cannabidiol (CBD) market which estimates the global market valuation for cannabidiol will cross US$ 89 billion by 2026. Growing medical applications and increasing sales of cannabidiol derived products in retail stores are two major factors supplementing the market growth. The report said: "After passing the Farm Bill in 2018, there has been a significant demand for CBD products across the globe especially in developed countries such as the U.S., France, Canada and Netherlands among others. The sales of CBD products are also increasing rapidly as cannabidiol-based products contain trace amounts of THC (psychoactive compound) and varied amounts of CBD. Also, many cannabidiol product manufacturing companies have partnered with big retail stores across countries which is expected to double the sales… According to this GMI report, the neurological conditions application segment is projected to grow with a considerable CAGR of 51.8% during the forecast timeframe. Cannabidiol has been proven to reduce the seizures and nausea associated with few of the neurological conditions such as Parkinson's disease, Alzheimer's disease, epilepsy and others. There around 5.5 million individuals in the U.S. suffering from Alzheimer's disease and around 1.2% of the total U.S. population suffers from epilepsy. Such increasing incidences of neurological disorders will aid in augmenting the CBD market growth." Active companies in the Cannabis market this week include Cannabis Strategic Ventures, Inc. (OTCQB: NUGS), Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), OrganiGram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), Medical Marijuana, Inc. (OTCPK: MJNA), Puration, Inc. (OTCPK: PURA).
The report continued: "By source, the CBD market is segmented into marijuana and hemp. Hemp segment is expected to grow with a higher CAGR of 53.1% and is predicted to continue this trend throughout the forecast timeframe. Hemp consists trace amounts of THC, whereas CBD is present in huge amounts, thus CBD based products are being utilized for treating various ailments. Additionally, majority of the countries have only legalized farming of hemp instead of marijuana as it contains THC which is a psychoactive substance. Thus, owing to the aforementioned factors, the market is expected to gain traction during the coming years.
Cannabis Strategic Ventures, Inc. (OTCQB:NUGS)
BREAKING NEWS: Cannabis Strategic Ventures Announces Record $400K Sales Day, Record Month Underway - Cannabis Strategic Ventures, an emerging leader in the U.S. cannabis marketplace, is pleased to report continued robust growth in total volume of cannabis sales and revenues from cannabis sales during the month of June, which is now on pace to set a new Company record for cannabis sales performance.
This strong performance was aided by a single day (June 4) during which the Company booked $400,000 in sales – its largest ever single day of sales. Management notes that the Company booked a record $929K in sales in May (7% more than its April sales total, which was also a monthly sales record, itself). The Company had already amassed nearly $900K in June sales with 30% of the month remaining.
Simon Yu, CEO of Cannabis Strategic Ventures, stated, "We continue to benefit from our decision in March to get more aggressive rather than retrench in response to the coronavirus crisis. The cannabis shortage we have seen in California since that time has afforded us a golden opportunity to sharply expand our distribution footprint and nurture a widening network of key distributor relationships. June is on pace to be our third consecutive record sales month. Given our strong positioning and expanding production capacity, we anticipate continued robust growth ahead."
The Company continues to invest in expanding its production capacity given highly positive pricing trends and tight supply side market conditions in the California cannabis marketplace. Management notes that the Company has increased its size of harvest by as much as 2.5x and is currently negotiating a deal through which it can be more than doubled again, as outlined in its release dated June 17.
In addition, due to strong execution on product quality and grow operations, the Company has progressed from booking sales well below industry standard pricing to selling at an 11% premium to benchmarks over recent months. Volume sold also continues to rise sharply on a week-over-week, month-over-month, and quarter-over-quarter basis.
"We are scaling up in healthy response to signals from the market telling us loud and clear that we are on the right track," continued Yu. "We anticipate all these trends will continue to characterize our operational performance during the second half of the year."
Other recent developments and major influences in the cannabis industry include:
OrganiGram Holdings Inc. (NASDAQ: OGI) (TSX: OGI) the parent company of Organigram Inc. (the "Company" or "Organigram"), a leading licensed producer of cannabis, recently announced that it has entered into a multi-year agreement for supply of dried flower to one of Israel's largest and most established medical cannabis producers, Canndoc Ltd. ("Canndoc"), a subsidiary of InterCure Ltd.
Canndoc has been a pioneer in pharmaceutical-grade cannabis for more than 12 years. Its GMP-approved medical cannabis products are sold in pharmacies in Israel, and it holds international cultivation and distribution agreements in the European Union and Canada.
Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) the Canadian company defining the future of cannabinoids worldwide, recently provided a progress update on its Business Transformation Plan that was previously communicated February 6, 2020 . "Across our organization we continue to take decisive action and execute on our previously announced Business Transformation Plan," stated Michael Singer , Executive Chairman and Interim CEO of Aurora. "With today's announcement we have achieved our stated SG&A run-rate target and expect to operate at approximately $42 million for the first quarter of fiscal 2021. The further cost savings and margin improvement to be realized from our facility rationalization plan is another example of our commitment to deliver greater efficiency throughout the business."
Puration, Inc. (OTCPK: PURA) recently released its 12th weekly Coronavirus update. The Texas economic reopening is showing signs of strain. Recently, Texas saw record new cases and local news sources were reporting a spike in hospitalization. PURA is continuing with its efforts reported last week to begin restocking inventory of its EVERx CBD Sports Water. PURA enjoyed sustained sales through the March and April shutdowns and immediately redistributed its current inventory to support demand once the economy in Texas reopened in May. PURA reported $2.7 million in annual sales last year and $800,000 in the first quarter of 2020. To insure against the possibility of another potential shutdown, in part or whole, PURA is rushing to complete another production run of EVERx.
Medical Marijuana, Inc. (OTCPK: MJNA) the first-ever publicly traded cannabis company in the United States that launched the world's first-ever cannabis-derived nutraceutical products, brands and supply chain, announced that its investment company AXIM® Biotechnologies, Inc. ("AXIM® Biotech" or "AXIM") has expanded its research division through the establishment of a state-of-the-art laboratory in the biotechnology industry hub of San Diego, Calif. Additionally, respected scientist Dr. Sergei Svarovsky will lead the oncology-focused research team as the Chief Scientific Officer and founder of AXIM's subsidiary, Sapphire Biotech, Inc. ("Sapphire").
"This new laboratory is a giant step forward for AXIM to bring its research completely in-house and continue its scientific discoveries at an accelerated pace," said Dr. Stuart Titus, CEO of Medical Marijuana, Inc. "We are excited to see further innovations from the team to be led by well-recognized researcher, Dr. Svarovsky."
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