Investing is a demanding task because your own money is at stake. At the same time, today it is investments that are the most effective way to increase your prosperity. Until 30 years ago, investments were mainly associated with securities, the oil and gas sector, or, in extreme cases, with real estate. But the world is changing, and today the most profitable are innovative investment projects. Such as the booming cannabis industry.
What Is Cannabis and Which Role It Plays in the Wellness & Health Care Industry?
Why cannabis, you may ask? The previously forbidden plant is gaining incredible popularity. And all thanks to the latest medical research. It’s all about one single component of Cannabis Sativa – cannabidiol. Cannabidiol or CBD is a natural cannabinoid that actively affects the human body. Moreover, the effect is curative. If earlier cannabis was a taboo subject due to its psychedelic properties, then with the development of technologies that allow the extraction of pure cannabidiol, the situation has changed radically. Now cannabis is not a way to escape from reality, it is an opportunity to change this very reality and your health for the better.
What does CBD affect? In fact, there are no areas in our body that are not affected by the action of cannabidiol. It integrates into the human endocannabinoid system and helps restore health and strength. Cannabidiol helps fight:
- Depression and mental disorders
- Pain in joints and muscles
- Chronic headaches and general pain syndrome,
- Skin diseases.
Its effectiveness has already been proven as an analgesic and supportive component of therapy for oncology, AIDS/HIV, Crohn’s disease. Currently, the development of effective drugs based on CBD for the treatment of Alzheimer’s disease, dementia, diabetes, and epilepsy is underway. It is prescribed by psychotherapists as an alternative to antidepressants and sleeping pills.
All this together created a real boom effect and led to the popularization of cannabis as a remedy for all diseases of mankind, which means it is a profitable investment object.
What Is The Cannabis World Market?
The cannabis market is not as new as it might seem at first glance. This plant has long served people as a useful and productive component of agriculture. Hemp is at the same time a raw material for the production of ropes, clothing and footwear in the eco-segment; it is a safe biofuel and extra-strong building material; it is a fodder base for farm animals and poultry.
In addition to the textile industry and the medical industry, hemp, or rather, seeds that do not contain psychotropic elements, can be eaten or used as animal feed, and oil is also made from them. Hemp stalks can be used to make cellulose, which is used to produce paper and extra strong composites for the aircraft and automotive industries.
At the same time, as much cellulose can be produced from 1 ha of hemp as from almost 5 ha of forest. In addition, a packaging film is created from it, which is almost completely identical to plastic, but completely biodegradable in three months.
But above all, it is a medicine for humanity. What are the constituent parts of the global cannabis market?
- The development of new varieties and genetic research. Gradually, the newest developments of breeders come to the usual regular varieties: varieties that are capable of producing a crop regardless of photoperiodicity, varieties with increased content of CBD in cones and inflorescences, varieties with increased productivity and resistance to parasites and diseases. All this allows CBD manufacturers to increase the productivity of the industry.
- Greenhouses and plantations directly. The increase in cannabis planting is not only about the increase in CBD production. It is also beneficial for the climate and the environment, as well as improving air quality in plantation sites. This is the creation of additional jobs, which means an injection into the world economy and a decrease in the unemployment rate.
- Manufacturing facilities for processing cannabis into pure CBD. Thanks to the work of enthusiasts and professionals, today CBD extraction is carried out with maximum efficiency, while the extraction methods are safe for the environment, and the finished product contains the most purified cannabidiol concentrate.
- Design and manufacture of products based on CBD. The industry today boasts thousands of CBD products. Due to the multifaceted use of this cannabis derivative, the range of manufacturers includes both dosage forms for consumption (concentrates, isolates, capsules, drops) and edible products (cookies, muffins, drinks with cannabidiol). External use allows the production of creams and cosmetics for skin care, balms for muscles and joints treatment, cosmetics for bathing, hair care products. The industry cares not only about mankind. There is a whole range of CBD products for pets too.
- Distribution of products from the CBD industry is another important part of the market. The development of supply chains, constant pressure on government agencies to relax legislation in countries where CBD has not yet been legalized, the creation of an educational and informational base to introduce people to the beneficial aspect of cannabis use – all this constitutes the CBD market.
Due to the fact that cannabis is gradually coming out of the shadows, its legal status is widening and covers such economic giant countries as Canada, the USA, the European Union, Israel, the countries of South America, it is not surprising that the cannabis market has very quickly and effectively replaced classic investment instruments.
Some Facts About CBD Market Development
But let’s not remain unfounded. Here are some important facts about the global cannabis market in its current state.
- Over the past 5 years, the cannabis market has grown by a record 750%.
- The first use of medical cannabis was recorded in 1996 in California, USA, and the first country to legalize cannabis was Uruguay in 2013.
- Every year the map of legal use and production of cannabis doubles.
- In 2018, the U.S. market for CBD was $ 4.5 billion. And the number of companies involved in the production of cannabis and products based on it has exceeded 28,000.
- By 2025, the capitalization of the industry is expected to grow to $ 200 billion.
- According to the UN, up to 238 million people use cannabis.
Traditionally, the USA and Canada remain the market leaders in the production of cannabis. It is here that the production facilities of the largest industry giants are concentrated.
- Canopy Growth Corp is a 3,500-strong company with 10 branches around the world, valued at $ 15 billion.
- Aurora Cannabis is the second largest company in the world. Almost 3,000 employees, operating income in 2019 – $297 billion.
- Curaleaf Holdings with the headquarters in Massachusetts gets 3rd place in the world rate with 1.6 billion square feet of greenhouses.
Yet, all the TOP-3 operate classical investment models using stocks that can be bought on the stock market. But this format is gradually becoming a thing of the past, and 2019 has become a turning point for the sharks of the cannabis industry because they are breathing in the backs of producers of a new generation.
A New Wave in the Cannabis Market: Who Are the Companies of a New Generation?
Who are the new wave cannabis companies? First of all, these are manufacturers who use advanced technologies at all stages. Such companies focus on organic cannabis cultivation, making sure that their products are eco-friendly. But above all, they create a comfortable environment for investors. Wegrower Cash Alliance is a striking example of such companies of a new formation. Based in Uruguay, the company not only offers high-quality products from its own genetic development of medical cannabis but also offers an open investment format. The investment principles for new wave companies are very simple:
- Anyone who is interested in the market and industry can become an investor.
- Transparency of investments and full production cycle are the main principles of work.
- The return on investment in cannabis is 1000%.
At the same time, WeGrower was able to set a high bar for competitors in a year of operation: starting from scratch, the company’s turnover in a year was $ 1,000,000.
And the number of investments exceeded $ 250,000.
Why Is Investing in the Cannabis Industry So Profitable?
To summarize our article, let’s put together the arguments for investing in cannabis. In 2021, cannabis is not a narcotic substance, but a promising material for several industrial sectors at once.
But the main emphasis in its use is on health care and improving the quality of life. Due to the wide range of effects of medicinal cannabis in general and CBD in particular, its use is increasing every year. Despite the fact that there are already many manufacturers on the world market, the demand for cannabis-containing products exceeds the supply at least three times. Therefore, now is the time to invest in new market players. Thanks to the trend towards multiple market growth and new options for producer-investor interaction, everyone can invest their money in the cannabis industry!