Unlike dozens of other industries across the globe, cannabis experienced significant growth as a result of the COVID-19 pandemic. In fact, with consumption for both medical and recreational products on the rise, 2020 was a record-breaking year for the industry. After years of investor uncertainty, analysts are predicting a continued bull market in 2021, with several new and exciting developments on the horizon.
Here are nine things the Nigerian Government need to know;
1. Cannabis Stocks on the Rise
While asset prices took a dip during the initial stage of the COVID-19 outbreak in March, the cannabis sector recovered swiftly after reporting impressive numbers.
2. All Eyes on the European Cannabis Market
The European cannabis market has been on investors’ radar for several years, and with good reason—it is one of the largest cannabis markets in the world.
Driven primarily by medicinal products, the market will be valued at over $39 billion by 2024, with countries like Germany—Europe’s largest economy—leading the way.
In late 2020, the market experienced its biggest breakthrough yet, with the European Union ruling that products containing CBD (one of the most active ingredients in cannabis) are no longer listed as narcotics.
3. Making History in Mexico
Mexico is another market that is piquing the interest of investors and cannabis companies the world over. That’s because it could soon be the third country in the world to legalize recreational cannabis by court order.
With a total addressable market of $2 billion and the potential to support up to 75,000 jobs, these new regulations could change the dynamic of the global market for the better.
4. Most Popular Cannabis Products
Given the flurry of product innovation in the market, the consumption of cannabis is quickly changing.
Relatively new products such as edibles and oils are gaining traction, while consumption of flower appears to be declining. This could be due in part to oral products being perceived as a healthier alternative to smoking.
5. CBD Products are Moving into the Mainstream
Although CBD was once considered a niche product that could only be found in dispensaries, growing awareness of the benefits and safety of these products are causing companies operating in the consumer packaged goods industry to take notice.
The cannabis compound is a new addition to a wide range of products such as skincare, makeup, and supplements that can now be purchased almost anywhere—from e-commerce sites to local grocery stores.
6. The New Cannabinoids on the Block
Beyond CBD, scientists have discovered over 100 rare, or minor cannabinoids such as CBG and CBN, that could have even more significant benefits than their major cannabinoid counterparts.
For example, preliminary research shows that CBG could inhibit cancer growth, help treat glaucoma, bladder dysfunction, and kill drug-resistant bacteria.
These discoveries are not only attracting huge attention from the cannabis industry but from the pharmaceutical industry as well.
7. COVID-19 and Cannabis
Cannabis has become an attractive option for people spending more time at home, both as a means of entertainment, and to reduce stress and anxiety associated with the pandemic.
As a result, cannabis sales are soaring. In Canada, monthly sales reached an all-time high of $270 million (CAD) in October 2020, a dramatic increase from $180 million just six months earlier.
8. Cannabis Black Market No More?
For millions of U.S. citizens who live in states where the sale of cannabis is still restricted, the illicit market continues to be their only option.
But with loosening restrictions and legal cannabis becoming more widely available, legal sales are predicted to reach $50 billion by 2026 while illegal sales will plummet to less than $1 billion by the same year.
9. Political Change Driving Market Growth
Almost 70% of Americans now support the full legalization of cannabis—the highest figure ever recorded.
States, where cannabis is legal, are now paving the way for cannabis sales, with California expected to pull in over $6 billion by 2021 alone. If federal legalization comes to fruition over the next several years, the already booming U.S. market could see further growth.
Milestones in the Making
With all of these exciting developments coming to the fore, it’s safe to say 2021 could be one of the cannabis industry’s most transformative years to date. Potential Nigerian investors should advocate for full legalization, there is a huge market opportunity in Europe and America.
Article Source: visualcapitalist.com