Cannabis Markets

 

'Home to the world’s largest federally legal adult-use cannabis program in Canada, and a patchwork of legalized U.S. states, North America is laying the foundation for a global industry. With total cannabis demand valued at $93 billion in 2020, the demand for cannabis in North America is second only to Asia’s ($186 billion), and is 20% larger than in the European market. Both the United States and Canada have been at the forefront of the legal cannabis movement, influencing how governments and legislative bodies across the world are approaching potential legalization of cannabis in their own countries.' - New Frontier Data

 

 

Sample this. Despite the illegal status of cannabis worldwide, sales were reported to be $415 billion in 2022, and this is said to be the floor, not ceiling, in terms of sales potential. At least five US states - California, Oregon, Washington, Colorado and Illinois are clocking more than $1 billion in sales annually with more states expected to join this club. With only 23 out of 50 US states having legalized adult recreational use, at the time of writing, the US is still predicted to have a $100 billion market by 2024. Asia, with cannabis largely illegal, reports sales of $186 billion last year despite low usage rates per person. North America comes second. Europe is expected to overtake North America in the long term. India, the land of ganja, alone has a dormant $500 billion market, as per my estimates. When the US legalizes cannabis federally, which is a question of when, rather than if, the global cannabis markets are going to see a domino effect like never before. South America and Africa, two traditional cannabis consuming continental giants, are slumbering volcanoes waiting to explode. We could easily be talking of numbers in the ranges of a few trillion dollars here. Then there is the question of cannabis for industrial and agricultural purposes, besides medical and recreational.

 

When we talk about cannabis markets, you should not be surprised that we are talking about a truly global phenomenon here. Worldwide the number of cannabis consumers is currently estimated to be around 260+ million, officially that is. I would estimate that the actual numbers of cannabis consumers are easily more than twice this, or closer to 800 million people. North America (led by the U.S. and Canada) and Oceania (led by Australia and New Zealand) have the world’s highest cannabis use rates. Asia however leads in terms of volumes of cannabis consumed. Africa has the third-highest use rates according to New Frontier Data. The UNODC World Drug Report 2020 states 'The cultivation of cannabis plants was reported by 151 countries in the period 2010–2018 – countries home to 96 per cent of the global population – and was reported through either direct indicators (such as the cultivation or eradication of cannabis plants and the eradication of cannabis-producing sites) or indirect indicators (such as seizures of cannabis plants and the origin of cannabis seizures reported by other Member States).' So this is the state of affairs when the plant is banned worldwide and consumers face imprisonment and social stigma if associated with it. If the plant was legalized globally, the total number of users would push upwards of 1.2 billion, with India alone contributing 250+ million users.

At least 38 US states have legalized cannabis for medical use so far, and 23 have legalized recreational use, at the time of writing. The federal US government however continues to keep cannabis in the Schedule 1 list of banned substances saying that it has no medicinal value. The list of US states that have legalized adult recreational cannabis is available here. Besides the US states, recreational cannabis is legalized in the countries Uruguay, Canada, Malta and Luxembourg. Quasi legal markets exist in Denmark, Jamaica, Thailand, Morocco and the Netherlands. The judiciary in Mexico and South Africa have ruled in favor of cannabis legalization, it is only the legislature that drags its feet, dancing to the tune of the industries opposed to cannabis. In 2020, Israel was the world's largest importer of cannabis. Germany was the largest medical cannabis market in Europe in 2022.  The illegal consumer market is global, and I would be very surprised if there is even a single country in the world where there is no recreational use at all. The cannabis plant, being one of the most ancient recreational and medicinal plants, will surely have consumers in the deepest forests and remotes areas of countries that have banned the plant completely in their urban areas. In most cases, cannabis production sources and markets are quite close to each other. 

Medical use markets are primarily in North America, Europe, Australia, New Zealand and some parts of Asia. Many countries, especially in Europe, like Germany and Italy have a great demand for medical cannabis but do not allow the growing and recreational use of the same. To meet their need, they typically import cannabis from countries where it is legally grown or processed. The key countries that currently grow cannabis for export are Canada, Uruguay, Colombia, Israel, the Netherlands, etc while the key countries that are importing cannabis are Germany, Italy, France, etc.

With regard to industrial use markets, China is the world's largest producer of cannabis for industrial purposes. France is said to be Europe's leading cultivator of cannabis for industrial purposes. The US is looking to upstage both China and France and emerge as the global leader in cannabis cultivation for industrial use. It legalized cannabis for industrial use, as hemp, in the 2018 Farm Bill to try and meet this objective. Interestingly the UN Single Convention Treaty of 1961 does not cover the use of cannabis for industrial or horticultural purposes which essentially means that at the UN level any country can cultivate cannabis for these purposes. It appears that most countries fail to do so either due to ignorance of this aspect, or the negation of this aspect through Scheduling or through the over enthusiasm of nations in implementing the ban on industrial use of their own accord.

There is complexity in terms of whether a country is an exporter or an importer or both. All this may be ways to work with national and international cannabis laws. It is seen that countries exporting cannabis themselves face shortage of supply and often source their cannabis based on agreements with governments of countries where both recreational and medical use is prohibited, such as the African, Middle Eastern and South American countries. So a number of the leading cannabis exporters are countries that source their cannabis not locally but from other countries and then supply it to the final destination country. To further complicate things, countries that import cannabis are reluctant to lift the curbs on cultivation for internal use which would help to meet domestic demands and reduce the need to import from other countries at a premium price. Poor nations are at the receiving end of this whole process, since people from these countries who would benefit the most from the availability of cannabis for medical, industrial or recreational purposes rarely get to see the plant because of its illegal status. The persons who finally use the plant are persons from wealthy nations who can afford multiple medical and recreational drugs, the same wealthy nations that pushed for the worldwide prohibition of cannabis and took it out of the hands of poorer nations.

So the situation is all very funny and complicated at the moment. In 2020, the UN removed cannabis from its Single Convention Treaty Schedule IV status which was a step down on the aggression towards cannabis. It however still retains it in the treaty's Schedule I which essentially means that all the curbs and restrictions vis a vis the common man still remain.  Completely lifting the ban on cannabis imposed through the Scheduling in the UN Single Convention Treat of 1961 will go a long way in enabling countries to freely cultivate and trade their varieties of cannabis worldwide, thus becoming both export and import markets for the plant to be used for recreation, medication and industrial needs.  The result will be easy access to all, as well as abundant and more equitable opportunities for agriculture, business, industry, tourism, research, medicine and recreation for all. Right now a few global companies, legal and illegal, working under the protection of their governments, are controlling the world's cannabis markets while the majority of the world, especially the poor everywhere, remain without cannabis. Day by day the numbers grow as news of recreational legalization spreads and people learn more about the plant's recreational, industrial and medical benefits and its social and recreational usage worldwide, both historical and current. The interesting thing is that the majority of legal consumers now are in markets that were the primary drivers of worldwide prohibition. These markets have started to embrace the plant while the majority continue to prohibit the plant given its UN classification, and the decades of anti-cannabis propaganda. 

Related articles

The following set of articles related to the subject are taken from various media. Words in italics are the thoughts of yours truly at the time of reading the article.  

 

Explore Untapped Consumer Segments in Legal Cannabis Markets

Our new report delves into the challenges the cannabis industry faces in maintaining its growth amid evolving regulation and legalization dynamics. It highlights the untapped potential within two key segments: potential new consumers and individuals participating in gray markets in legal states. The report presents data from a 2023 cannabis survey of over 5,500 US adults, which provides insights into the behaviors, preferences, and concerns of these segments. By understanding these factors, the report aims to help the industry develop effective strategies to welcome and integrate these untapped participants, ultimately facilitating the industry's growth.

https://info.newfrontierdata.com/cannabis-consumers-in-america-2023-part-3

'Among the report’s key takeaways were:

- Given that $415 billion in global sales, “Cannabis already represents a market of global consequence,” the report says. Also, this sales figure is the “floor,” not the “ceiling,” the report says.
- Worldwide, one-third of nations have passed some form of legalization, but most programs are too restrictive to be considered operational high-THC markets.
- More than 4.4 million patients globally are registered in medical programs, with that number forecast to reach 7 million by 2025 despite limited physician education.
- “North America will remain the global epicenter of legal cannabis for the foreseeable future.”'

https://www.greenentrepreneur.com/article/387636


'Home to the world’s largest federally legal adult-use cannabis program in Canada, and a patchwork of legalized U.S. states, North America is laying the foundation for a global industry. With total cannabis demand valued at $93 billion in 2020, the demand for cannabis in North America is second only to Asia’s ($186 billion), and is 20% larger than in the European market. Both the United States and Canada have been at the forefront of the legal cannabis movement, influencing how governments and legislative bodies across the world are approaching potential legalization of cannabis in their own countries.'

https://newfrontierdata.com/cannabis-insights/fragmented-markets-and-patchwork-regulations-aside-north-america-sets-global-course-for-legal-cannabis-industry/

'Worldwide, an estimated 268 million people consumed cannabis at least once during 2020. The estimated number of cannabis consumers per region is heavily dependent on the population size, demographic age ranges, and average rates of past-year cannabis use in the individual countries that compose each region. While Asia – the world’s most populous region – by default has the highest count of cannabis consumers (with an estimated 93.8 million), the continent nevertheless has comparatively lower cannabis usage rates than any other region, giving it both the largest number but lowest density of cannabis consumers globally.

Across the planet’s adult populations (i.e.,ages 15+), North America (with an estimated 49.6 million cannabis consumers) is home to the highest rates of cannabis use, with those in Canada and the United States (accommodated by liberal social policies) both supporting the advancement of legalization and establishment of robust regulated markets. The legalization of cannabis leads to higher reported rates of use, and acts as the single-most important factor in the growth of a national cannabis consumer base. Mexico recently became the latest country to fully legalize possession and use for adults, and others are likely to follow as more countries realize how reform legislation could help spur economic growth in their post-pandemic economies.'

https://newfrontierdata.com/cannabis-insights/grass-grows-greener-globally-as-total-cannabis-consumers-increase-worldwide/

'As cannabis legalization initiatives gain momentum, it will be cannabis producers poised for international growth on multiple continents that dominate the industry. Latin America is positioned to deliver high-quality products all over the globe, so when the regulatory environment in the United States is ready, we’ll be able to meet that demand.'

https://www.nasdaq.com/articles/as-the-u.s.-inches-forward-slowly-latin-america-lights-the-way-for-global-cannabis

'2021 is shaping up to be a record year for legislative-driven recreational marijuana legalization – and cannabis industry executives and advocates have lawmakers and governors in four states to thank for that.

The MJBizFactbook projects those four markets – Connecticut, New Mexico, New York and Virginia – together will generate more than $4.5 billion in annual sales by their fourth year of operation.

In addition, $500 million in annual medical marijuana sales are expected to be produced over time through MMJ legalization this year in the Deep South state of Alabama – again thanks to lawmakers and the governor.

This year’s adult-use victories represent a record number of legislative wins for recreational marijuana advocates.'

https://mjbizdaily.com/marijuana-industry-scores-5-billion-worth-of-legalization-wins-in-2021-via-state-legislators/

'With new markets coming online and existing markets trending upward, legal cannabis sales in the U.S. are projected to surpass $30 billion in 2022, according to an updated long-term forecast by Seattle-based marijuana analytics firm Headset.

This latest forecast includes impending recreational marijuana markets in New Mexico and Connecticut and a medical market in Alabama as each is set to begin retail sales at some point in 2022.

Though some of those markets will be open for business for only part of 2022, the total annualized first-year sales volume for the three will be near $300 million, according to Headset.

One unknown is the opening of the gargantuan recreational market in New York.'

https://mjbizdaily.com/us-cannabis-sales-could-top-30-billion-by-2022/

'The UN body cites a global survey conducted last year that found cannabis consumption was perceived to have increased in approximately 32 countries.

“In the absence of information on global production of cannabis, this can be read as an indication that supply may have expanded to meet the increase in consumption,” according to the report, which deals mostly with unregulated cannabis markets.

“Some cannabis markets have grown strongly during the pandemic – and likely because of it – as a result of stay-at-home orders and social distancing restrictions,” it said.'

https://mjbizdaily.com/un-report-cannabis-markets-likely-grew-because-of-pandemic/


'CBD has been touted for a variety of wellness and therapeutic applications — whether from aches and pains, to relaxation, to treating acute medical conditions. Accordingly, consumers’ reasons vary for their use of it. In a survey of U.S. CBD users, New Frontier Data found that consumers differ profoundly about their primary motivations for using it. A new report provides analysis of four key demographic cohorts driving consumption, and summarizes key market differences defining use behaviors and preferences for each'

https://newfrontierdata.com/cannabis-insights/who-is-driving-cbd-consumption-four-groups-define-sales/

'The U.S. recreational and medical marijuana markets are on a trajectory to reach up to $45.9 billion in annual sales by 2025, or as much as twice the level of sales projected for this year, according to the newly released 2021 Marijuana Business Factbook.

U.S. adult-use and medical cannabis sales in 2021 are expected to reach $22 billion-$26.4 billion.'

https://mjbizdaily.com/new-marijuana-business-factbook-projects-nearly-45-billion-us-market-by-2025/

'“The European cannabis market has the potential to exceed the U.S. cannabis market over the long-term and will help fuel our growth for years.”

According to the Financial Times, Curaleaf was making 90% of its revenues from medical marijuana at the start of 2020, but today that split has shifted, with 60% of the company’s revenues coming from adult-use cannabis.

Similar moves to legalize recreational cannabis are expected across Europe in coming years, as various countries roll back marijuana prohibition and become more accepting of cannabis in general.

Costanzo said he believes most of Europe is about three to four years behind the U.S. on that front.'

https://mjbizdaily.com/curaleaf-acquires-emmac-life-sciences-enters-european-marijuana-market/

'Key findings from the report include:

- Annual legal (medical and adult-use) sales are projected to grow at a compound annual growth rate (CAGR) of 21%, to reach more than $41 billion by 2025 (from $13.2 billion in 2019)
- By 2025, an estimated 39% of total annual cannabis demand across the country will be met by legal purchases in regulated marketplaces (from 17% in 2019)
- Annual legal sales of medical cannabis are projected to grow at a 19% CAGR through 2025, to an estimated $16.3 billion (from $5.9 billion in 2019), while adult-use sales are projected to grow at a 23% CAGR, to $25.1 billion (from $7.4 billion in 2019)'

https://azmarijuana.com/arizona-medical-marijuana-news/u-s-marijuana-industry-projected-to-reach-41-billion-by-2025/

'In 2020, a year we’d all surely sooner forget, Americans spent an astonishing 67 percent more on cannabis than they did in 2019, for a total of almost $18 billion, and Covid is likely to blame.

That means sales were up more than $7 billion from the previous year, confirming our suspicion that perhaps forgetting the unending string of horrific events that took place last year was the goal all along.

According to Leafly, which crunched the numbers by assessing state tax and revenue data across all medical and adult-use markets, the coronavirus pandemic that hit the United States in March is what’s behind for American’s increased appetite for cannabis.'

https://thedalesreport.com/cannabis/thanks-to-covid-19-u-s-marijuana-sales-saw-massive-increase-in-2020/

'Some specifics:
- California’s legal market – which launched in 2018 – hit $4.4 billion in sales, compared with $2.8 billion in 2019 and $1.4 billion in 2018.
- Colorado’s sales figures for medical and recreational cannabis exceeded $2 billion even without December sales yet tabulated, up from $1.7 billion in 2019 and $1.5 billion in 2018.
- Oregon’s annual sales surpassed $1 billion for the first time in 2020, and the state had four months in a row, starting in May, when recreational and medical sales combined set a record at more than $100 million.
- Washington state, the second-oldest adult-use market in the country, reached a sales high of $1.4 billion in 2020, up from $1.1 billion in 2019 and just over $1 billion in 2018.
- Illinois set a high bar for performance in its first year of adult-use sales by breaking the $1 billion threshold.
- Massachusetts hit almost $700 million in sales, up roughly 56% from 2019 – despite last spring’s adult-use store closures.
- Even tourist-reliant Nevada, which has yet to report sales figures for the final quarter of 2020, appears on pace to beat its 2019 sales totals of $701 million, with more than $554 million in medical and recreational sales through September.'

https://mjbizdaily.com/cannabis-sales-records-smashed-or-set-in-2020-and-insiders-expect-the-gains-to-continue/


'[US] Sales of legal marijuana products rose by more than $7 billion in 2020, according to an analysis of state revenue data compiled by Leafly.com.

In all, customers purchased an estimated $17.9 billion in cannabis products from legal retailers in 2020 – up from a total of $10.7 billion in 2019. Leafly’s analysis includes sales from both medical-use and adult-use retailers.'

https://norml.org/news/2021/01/21/legal-marijuana-sales-spiked-dramatically-in-2020


'The oldest adult-use marijuana market in the United States, Colorado, hit a milestone in 2020 when sales surpassed $2 billion for the first time in a calendar year.

And that total did not include sales figures for December.'

https://mjbizdaily.com/colorado-marijuana-sales-reach-2-billion-in-2020/

'The growth of the CBD market in Europe is attributed to the increasing acceptance of CBD-infused goods in industries such as pharmaceuticals, personal care, cosmetics, nutraceuticals and medical applications… The demand for CBD in Europe continues to grow rapidly as consumers embrace this cannabinoid for medical and general wellness, creating opportunities for large food and beverage brands and health and beauty brands… In Europe, CBD is seeing monumental demand. In Europe alone, according to the Brightfield Company, the business is expected to rise by 400 per cent over the next four years.'

https://www.prnewswire.com/news-releases/global-cbd-industry-projected-to-accelerate-to-23-6-billion-over-the-next-five-years-301179412.html

' - According to a New Frontier Data U.S. market survey, average overall cannabis use has increased for more than 4 in 10 (42%) cannabis consumers (i.e., those using at least once a year) during the COVID-19 pandemic.
- Another 42% of those surveyed reported maintaining consistent consumption, while 16% reported decreasing use during 2020.
- Among demographic differences, younger consumers (ages 18-34) were considerably likelier to increase use than were older consumers; consumers under age 55 were more than 2x likelier than those 55+ to increase consumption.
- The group likeliest reporting increased consumption were parents living with children under age 18, more than half (56%) of who reported increased use, compared to 39% of those without children, and 25% of those with adult children.
- Flower remains the most popular product form: More than one-quarter (27%) of consumers reported increasing their use of flower, while 15% reported a decrease. Edibles and vapes saw roughly equal numbers of consumers increasing or decreasing their use of same.'

https://newfrontierdata.com/cannabis-insights/cannabis-consumers-coping-with-covid-19/

'The legalization ballot measures that voters approved on Election Day will open new cannabis markets in five U.S. states that have a combined population of about 21.2 million people.

While details of each framework still must be established, Arizona, Montana, New Jersey and South Dakota all approved adult-use cannabis.

And voters in Mississippi and South Dakota OK’d medical marijuana programs.

Following is a look at some key economic and demographic data for each of the new markets.'

https://mjbizdaily.com/getting-to-know-the-five-new-legal-cannabis-markets/

'The 2020 election was significant for a number of reasons:

- New Jersey voters legalized an adult-use market that Marijuana Business Daily projects could approach $1 billion in sales a year by 2024. That vote also will increase the pressure on neighboring states such as New York and Pennsylvania to legalize recreational cannabis.
- Arizona voters legalized adult use four years after a narrow defeat. MJBizDaily projects the state will total $760 million in annual sales by 2024.
- Marijuana legalization victories in Mississippi and South Dakota show that red states increasingly are embracing marijuana. The wide-open medical marijuana initiative passed in Mississippi also could influence other states in the Deep South, experts say.
- South Dakota became the first state to legalize medical and adult-use marijuana at the same time.'

https://mjbizdaily.com/voters-in-nj-arizona-3-other-states-legalize-potential-2-5b-plus-marijuana-markets/


'“In 2019, U.S. consumers spent nearly $80 billion on legal and illegal cannabis products, a material figure at any point, but certainly during a time of economic crisis,” says New Frontier Data Founder & CEO Giadha DeCarcer. “As established mainstream brands, particularly Food & Beverage and Health & Beauty CPG firms, look for growing consumer groups to engage with, the cannabis sector rises to the top of their target list, especially as known consumption previously within the illicit space more rapidly moves into the legal realm and thus an accessible space.”'

https://candidchronicle.com/report-shows-legal-u-s-cannabis-market-at-35-billion-by-2025/

- 'U.S. population growth and rising usage rates will naturally increase the nation’s total number of cannabis consumers.
- However, with 34 existing legal medical states and 11 legal adult-use states, those programs are projected to capture some of the growing demand, and thus erode part of the growth in illicit markets nationwide.
- In 2019, 17% of cannabis sales in the U.S. were estimated to be legal; New Frontier Data estimates that by 2025 more than one-third (34%) of total annual cannabis demand will be met through regulated markets.
- When individual states impose strict market limitations limiting access or creating delays for cannabis, illicit markets tend to recapture consumers.
- In California this year, but 38% of in-state demand will likely have been provided by legal regulated sources, though that share is projected to reach 46% by 2025.
- Meantime, other recently activated recreational markets (e.g., Illinois, Massachusetts) are expected to convert nearly three-quarters of all cannabis sales to legal program.'

https://newfrontierdata.com/cannabis-insights/legal-cannabis-industry-growth/


'Voters in five states will decide whether to legalize medical and recreational cannabis on Nov. 3, with billions of dollars of market opportunities hanging in the balance.

Successful ballot measures could sway residents and lawmakers in neighboring states to follow suit – especially in the Northeast if New Jersey residents vote to legalize an adult-use market.'

https://mjbizdaily.com/billions-at-stake-as-voters-decide-on-medical-adult-use-marijuana-markets-in-five-states/

'When CBD first exploded on the scene, THC’s non-intoxicating relative quickly became a sought-after compound for pain and anxiety sufferers across the country. Since the Farm Bill made all hemp-derived products federally legal in late 2018, startups have been looking to capitalize on new compounds and technologies that may just leave CBD in the dust. '

https://www.forbes.com/sites/amandasiebert/2020/09/17/move-over-cbd-rare-cannabinoids-shaking-up-cannabis-and-hemp-products/amp/

' - In 2019. cannabis-infused products (i.e., topicals and edibles) accounted for 14% of total U.S. legal cannabis sales (both medical and adult-use markets).
- Cannabis-infused products are forecast between 2020-2025 to generate nearly $22 billion in U.S. sales.
- Including CBD- and other minor-cannabinoid-infused products, substantial opportunities presented by the sector are fueling interest from investors and entrepreneurs.
- Uncertainty exists as regulators (i.e., both the U.S. Drug Enforcement Administration, and the EU’s European Commission) have proposed rules effectively constraining those respective markets.
- Should the regulators permit open and competitive markets, cannabis-infused products would represent some of the most dynamic and disruptive market opportunities in the global industry.'

https://newfrontierdata.com/cannabis-insights/infused-products-offer-big-opportunities-if-regulators-allow/

'As the West Coast matures from the early Green Rush and Midwest markets like Michigan and Illinois hit their stride with recent legalization, all eyes are on the Northeast as the sleeping giant that will radically change the national cannabis landscape for 2021 and beyond. Among the 40 million-plus residing in the tri-state area between New York, New Jersey, and Pennsylvania, the East Coast offers a monumental competitive advantage with substantial opportunities for new players to make their mark as soon as the industry is given the green light to move forward—which is only a matter of time.'

https://thefreshtoast.com/cannabis/2021-will-be-the-year-for-the-northeast-cannabis-market/


'In the first three quarters of 2020, states have seen an average year-over-year increase in average spending per user of 34%. That growth was not limited to emerging markets, with the four oldest recreational markets (i.e., Colorado, Washington, Alaska, and Oregon) alone seeing a 30% average increase in per user expenditures. Adult-use states saw an average increase in spending per user of 28%, while medical-only states saw an increase of 39%.

Whether COVID-19 has resulted in a temporary surge in cannabis use, or is a catalyst for long-term, sustained growth in per-capita consumption is yet unclear. In the near term, however, New Frontier Data expects to continue seeing elevated levels of consumer spending, throughout the duration of the pandemic, and perhaps beyond.'

https://newfrontierdata.com/cannabis-insights/august-numbers-show-sustained-post-covid-sales-increase/

'- Increased cannabis sales are continuing since spikes in demand seen post-COVID-19 shutdowns.
- Despite a slight decrease from initial lockdown-related sales spikes in Q2-2020, average cannabis expenditures per user increased 17.4% year-over-year (YoY) from August 2019 to last month.
- States have seen a national average increase of 22.8% in average expenditure per user since the start of 2020.
- Flower and extracts have seen the largest increase in average purchase value, respectively growing 70.8% and 55.8% since Q1-2019.
- Tincture sales have waned since their peak popularity, deceasing 19.2% in average purchase value since Q1-2019.
- In the first three quarters of 2020, states have seen an average 34% YoY increase in average spending per user.
- Recreational states saw an average increase in spending per user of 28%, while medical-only states saw an increase of 39%.
- This growth was not limited to emerging markets. The four oldest adult-use markets (i.e., CO, WA, AK, OR) shared average growth rates of 30%.'

https://newfrontierdata.com/cannabis-insights/annual-growth-in-average-cannabis-spending/


'The case might also be made that cannabis is an “inferior” good – a product that experiences sales increases during negative economic cycles. Alcohol sales often follow this pattern.

With fewer outside-the-home entertainment options available, consumers might shift discretionary spending to activities that can be done at home, including ingesting marijuana.'

https://mjbizdaily.com/chart-adult-use-cannabis-sales-remain-steady-even-as-unemployment-bonus-ends/


' - A New Frontier Data consumer survey found that 56% of Europeans surveyed have heard of CBD, compared to 86% of U.S. respondents.
- 16% of Europeans report having used CBD.
- More than 1/3 (35%) of EU CBD consumers reported their primary source being a personal connection.
- Among the most popular reasons for using CBD (including more than one): Pain management (40%), relaxation (34%), stress relief (31%), and anxiety reduction (26%).
- In 2020, the estimated annual spending on CBD in the EU is €8.3 billion (USD$9.75 billion), projecting to reach €13.6 billion (USD$15.98 billion) by 2025 (a 10.4% CAGR)'

https://newfrontierdata.com/cannabis-insights/europes-cbd-market/

'The EU CBD Market Remains Immature

While industrial hemp cultivation is nothing new to the EU market, CBD remains largely unknown to a large percentage of the European public. As of Q4-2019, only 56% of Europeans had heard of CBD, compared to 86% of Americans, respectively. Among Europeans surveyed, only 46% had a positive view of CBD.

Brands hoping to make inroads in the continent’s market will have to close the knowledge gap. For early market entrants, that presents significant opportunities to build customer loyalty before competitors have established a footprint.'

https://newfrontierdata.com/cannabis-insights/eu-advertising-restrictions-keep-european-consumers-uncertain-about/

 

'May was the top month for medical coverage for cannabis since the current regulatory framework was implemented in early 2017.

During that month, statutory health insurers covered 10.6 million euros of medical cannabis, surpassing the 10 million euro mark for the first time. The number fell to 9.5 million euros in June.'
https://mjbizdaily.com/analysis-german-sales-of-insured-medical-cannabis-soar-in-second-quarter/



Pharmaceuticalizing the plant...

'CBD is currently listed as a Schedule 4 substance in Australia and therefore available only with a prescription.

Under the proposed change, CBD would become a Schedule 3 substance, meaning no prescription would be required as long as the following conditions apply:

    - The cannabidiol is plant-derived or, if it’s synthetic, is subject to certain conditions.
     - The maximum recommended daily dose is 60 milligrams or less.
     - The product is in packs containing not more than a 30-day supply.
     - Cannabidiol comprises 98% or more of the total cannabinoid content of the preparation.
     - Any cannabinoids, other than CBD, must be only those naturally found in cannabis and comprise 2% or less of the total cannabinoid content of the preparation
     - The product is for adults 18 and older.'
https://mjbizdaily.com/australia-moves-toward-over-the-counter-cbd-sales/


'As the coronavirus spread across the globe, lawmakers had to cancel further action in late March, missing an April 30 deadline Mexico’s supreme court set. Now, lawmakers have to pass a legalization bill during their next scheduled legislative session, which runs from Sept. 1 to Dec. 15.

If approved, Mexico would be the world’s most populous country – population 130 million – with legalized cannabis regardless of THC content, meaning both marijuana and hemp.'
https://hempindustrydaily.com/mexico-moves-toward-legal-hemp-marijuana-despite-latest-delay/


'A study on the impact of cannabis legalization on alcohol sales in Colorado, Oregon and Washington, the three states with the longest history of legal nonmedical use of cannabis, showed that there was no evidence that legalization had had any impact on the sale of spirits or on total alcohol sales, which are generally considered a good proxy for alcohol consumption in the United States. The study showed that the per capita sale of spirits had increased by 3.6 per cent in Oregon, 5.4 per cent in Washington and 7.6 per cent in Colorado in 2018, after the measures allowing the non-medical use of cannabis were implemented in those states. Consistent with national trends, per capita sales of beer had declined by 3.6 per cent in Colorado, 2.3 per cent in Washington and 3.6 per cent in Oregon. The sale of wine increased by 0.7 per cent in Oregon, declined by 3.1 per cent in Washington and increased by 3.2 per cent in Colorado. Overall, per capita sales of alcoholic beverages were fairly stable, as they increased by 1.7 per cent in Colorado, declined by 0.2 per cent in Washington and declined by 0.5 per cent in Oregon' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf


'In the United States, a total of 33 states, as well as the District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands, had approved or had in place a comprehensive programme for medical cannabis by the end of 2019. As at December 2019, 11 state-level jurisdictions in the United States, plus the District of Columbia, allowed the nonmedical use of cannabis, and most also allowed commercial production by for-profit industry. It is worth noting that all the states that have legalized the non-medical use of cannabis previously had measures in place permitting the medical use of cannabis.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf


'After the cannabis regulations were adopted and sales began in October 2018, retail sales of nonmedical cannabis online and in cannabis stores up to September 2019 totalled some 908 million Canadian dollars, or an average of Can$24 (approximately $18) per capita. Although Ontario had the smallest number of retail outlets, it had the highest retail sales (Can$216 million), followed by Alberta (Can$196 million) and Quebec (Can$195 million), by the end of September 2019. Out of the total of Can$908 million, most sales were made through bricks-and-mortar stores (Can $788 million), while online retail sales (Can$120 million) accounted for 13 per cent. Direct-to-consumer trade by wholesalers, which includes retail sales by public sector stores classified as wholesalers, accounted for 1.9 per cent over the same period.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf


'According to the new cannabis regulations, the federal Government of Canada is responsible for setting the requirements for those who grow and produce cannabis, including the types of cannabis products available for sale. For example, the regulations were amended in October 2019 to allow the production and sale of edible cannabis, cannabis extracts and topicals, and the sale of those products began gradually from December 2019. The provincial and territorial governments, for their part, are Responsible for developing, implementing, maintaining and enforcing systems to oversee the distribution and sale of cannabis.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf


'While most cannabis users had used more than one product, over three quarters of users purchased and consumed dried cannabis flower or leaf for smoking. Although the sale of edibles and extracts started only at the end of 2019, a substantial share of cannabis users reported using edible cannabis products (26 per cent), cannabis oil or vape pens (19 per cent), hashish (16 per cent) and solid cannabis concentrates (14 per cent) during the same year.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf


'In 2019, young people aged 15–24 were more likely than those in older age groups to obtain cannabis from illegal sources, whereas a larger share of older cannabis users relied solely on legal sources; 41 per cent of cannabis users aged 65 or older reported using only legal sources to obtain cannabis, compared with roughly one quarter of the other age groups.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf


'The transition from the illegal market to legal sources of cannabis has been a gradual one. The proportion of cannabis users sourcing their products from the legal market increased from around 25 per cent in the second and third quarters of 2018 to about 50 per cent one year later, and in 2019 nearly 30 per cent relied solely on the legal market for their cannabis (compared with 10 per cent in 2018). Many users relied on multiple sources to obtain their cannabis, with about 40 per cent of cannabis users still getting their product from illegal sources.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf


'Along with the increase in prevalence, the frequency of cannabis use also increased marginally. At the beginning of 2018, some 5 per cent of the population aged 15 and older were daily users of cannabis products; by the third quarter of 2019, this proportion had increased to 6 per cent. Increases in the proportion of daily users of cannabis were observed mainly among males, young people aged 18–24 and those aged 65 and older. Daily or near-daily use of cannabis is more frequent in younger users than in older ones. Nearly 8 per cent of people aged 15–24 and 9 per cent of those aged 25–44 were daily or near-daily users of cannabis, compared with 4 per cent of people aged 45–64 and nearly 3 per cent of those aged 65 and older. Men were twice as likely as women to be daily or near-daily cannabis users. A commonly observed pattern of use is that regular and frequent users of cannabis, such as daily or near-daily users, represent a small proportion of all cannabis users, but they account for the bulk of cannabis products consumed. It is estimated that in 2018, for example, around half a million people in Canada consumed some 810 tons of cannabis, of which half (426 tons) were consumed by daily or near-daily users and another 355 tons by those who reportedly used cannabis at least once a week.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf


'Cannabis use has increased in all provinces but Manitoba. In most provinces, the increase between 2018 and 2019 was rather modest. In four provinces, however, cannabis use increased considerably (Newfoundland and Labrador, Prince Edward Island, Nova Scotia and New Brunswick).' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf


'With revenue of $10.6 billion-$13 billion in 2019, sales of legal adult-use and medical marijuana in the United States topped spending on sleep aids, hard seltzer and toothpaste combined.

Total marijuana sales now exceed the National Basketball Association’s annual U.S. revenue and, by 2024, could surpass Americans’ annual spending on craft beer.

The data – published in the 2020 edition of the Marijuana Business Factbook – underscores the fact that the U.S. cannabis industry is already a major economic force, even though it has yet to reach its full potential.'
https://mjbizdaily.com/chart-retail-cannabis-sales-surpass-nba-revenue-approach-prescription-pain-meds/


'Israel had no large imports before 2020, but in only six months the country became the largest importer in the world, underscoring how quickly things change in this nascent international industry.

Israeli producers have long eyed the export market, but the government has been slow to successfully facilitate exports, despite many attempts.

Several government decisions supposedly approving exports have been widely celebrated over the past couple of years, but so far no meaningful exports from Israel have occurred.'
https://mjbizdaily.com/israel-passes-germany-as-worlds-largest-importer-of-medical-cannabis-flower/


'Unlike other plant-based drugs, for which cultivation and production is concentrated in only a limited number of countries, cannabis is produced in almost all countries worldwide. The cultivation of cannabis plants was reported by 151 countries in the period 2010–2018 – countries home to 96 per cent of the global population – and was reported through either direct indicators (such as the cultivation or eradication of cannabis plants and the eradication of cannabis-producing sites) or indirect indicators (such as seizures of cannabis plants and the origin of cannabis seizures reported by other Member States).' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_Booklet_3.pdf


'Most countries do not have a comprehensive system in place for monitoring areas under illicit cannabis cultivation. At present, the information available is insufficient to produce scientifically accurate global estimates of the area under illicit cannabis cultivation. In addition, most of the estimates of the areas under illicit cannabis cultivation reported to UNODC do not generally meet scientific standards.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_Booklet_3.pdf


'The largest quantities of cannabis herb seized in 2018 were those reported in the Americas (61 per cent of the total), with South America alone accounting for 43 per cent of the global total. Of note is the marked decline in the share of seizures made in North America, which had long been the subregion reporting the largest cannabis herb seizures: on average, 50 per cent of the global total over the period 2008–2018, falling to 17 per cent of the global total in 2018, that is, to less than the total for Africa that year (19 per cent). The next largest regional reported seizure totals in 2018 were those for Asia and Europe.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_Booklet_3.pdf


'The quantity of cannabis herb seized in 2018 declined by 16 per cent compared with a year earlier, falling to 4,303 tons, the lowest level since 1999. As compared with 2010, the quantity seized fell by 34 per cent at the global level, largely due to decreases reported in North America (-84 per cent), with marked declines being reported by Mexico, the United States and Canada. Discussions and policies aimed at liberalizing the cannabis markets, including changes in the drug’s legislation in Canada and some jurisdictions of the United States, legalizing the production, distribution and the recreational use of cannabis, seem to have played a key role in this respect. By contrast, the quantities of cannabis herb seized almost doubled in the rest of the world over the period 2010–2018 (South America: +194 per cent; Oceania: +94 per cent; Europe: +73 per cent; Asia: +71 per cent; Africa: +53 per cent). The global cannabis herb trafficking index, based on qualitative information reported by Member States on trends in cannabis herb trafficking, also increased over the same period, although the trend appeared to be stabilizing in 2018.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_Booklet_3.pdf


'In 2018, the largest quantities of cannabis herb seized worldwide continued to be those reported by Paraguay, followed by the United States and India. Cannabis herb produced in Paraguay is reported to have been mainly destined for neighbouring Brazil (77 per cent) and Argentina (20 per cent). Over the period 2008–2018, the largest cannabis herb seizures worldwide took place in the United States, followed by Mexico, Paraguay, Colombia, Nigeria, Morocco, Brazil, India and Egypt' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_Booklet_3.pdf


'Trafficking in cannabis resin continues to be far more geographically concentrated than is trafficking in cannabis herb. More than half of all cannabis resin was seized in Western and Central Europe (51 per cent) in 2018, followed by the Near and Middle East/South-West Asia (36 per cent) and North Africa (8 per cent). These three subregions accounted for 95 per cent of all cannabis resin seized worldwide in 2018.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https-://wdr.unodc.org/wdr2020/field/WDR20_Booklet_3.pdf


'Morocco, with 47,500 ha reported to be under cannabis cultivation in 2018, continues to be the most frequently mentioned source country for cannabis resin worldwide in the annual report questionnaire, being mentioned in more than a fifth of all cases as the main country of origin of cannabis resin seized worldwide over the period 2014–2018; Morocco was followed by Afghanistan, where, a UNODC survey found, in 2010 an area of 9,000–29,000 ha was under cannabis cultivation. Cannabis resin produced in Morocco is mainly destined for other markets in North Africa and markets in Western and Central Europe. Some cannabis resin of Moroccan origin is also trafficked to Eastern Europe and South-Eastern Europe. Most cannabis resin of Moroccan origin destined for Europe is first shipped to Spain, from where it is smuggled to other markets in the region. For many years, including in the period 2014–2018, Spain has been identified by other European countries as the principal country of departure and transit for cannabis resin, followed by the Netherlands.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_Booklet_3.pdf


'Afghanistan appears to be the second most important source country of cannabis resin worldwide, with 19 per cent of all mentions worldwide in the annual report questionnaire over the period 2014– 2018, followed by Pakistan and Lebanon. The cannabis resin produced in these countries is principally destined for other countries in the Near and Middle East/South-West Asia, although cannabis resin originating in Afghanistan has also been identified in Central Asia, Eastern Europe and Western and Central Europe. The Islamic Republic of Iran reported that the cannabis resin found on its territory originated mainly in Afghanistan (followed by Pakistan), with some 65 per cent destined for countries of the Arabian peninsula, 15 per cent for the Caucasus and some 20 per cent for domestic consumption. Cannabis resin originating in Lebanon is mainly found in the Near and Middle East and, to a lesser extent, in Western and Central Europe.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_Booklet_3.pdf


Afghanistan and Mexico source the heroin and morphine. Mexico, Thailand, Myanmar and China source the methamphetamine. The Middle East and Eastern Europe sources the amphetamine. The US consumes heroin, cocaine and methamphetamine. Europe consumes heroin, morphine, methamphetamine and amphetamine. Asia consumes heroin, morphine and methamphetamine. Australia consumes methamphetamine. The Middle East consumes heroin and amphetamine. West Asia consumes heroin and methamphetamine. All countries grow and consume cannabis. Opioids, methamphetamine and amphetamines kill the most in terms of drug deaths, cannabis kills none. Who are the leading opponents to cannabis legalization and leading enforcers of global anti-cannabis policy? The countries involved the most in heroin, morphine, amphetamines and methamphetamines. They put on a mask of concern about harms from drugs, produce, sell and consume the most dangerous synthetic drugs and vehemently oppose cannabis legalization worldwide while clandestinely feeding their habits and protecting their sources. They use arms and armies to protect and promote their synthetic drug habits, and drug money to fund and wage a war on cannabis everywhere, pushing man and planet ever closer to death on massive scales and away from the safe, healing cannabis herb...
Jul 10, 2020, 1:14 PM


'The lack of disaggregated data makes it impossible to obtain a global overview of drug use as distributed between urban and rural areas and to analyse interacting global trends in urbanization and drug markets. From the information available, it seems that drug use is more prevalent in urban areas than in rural areas, in both developed and developing countries, with the exception of some major rural drug-producing areas. Urbanization has also been found to be a general risk factor for drug use; for example, data from school surveys in Colombia and Mexico show the prevalence of use of some drugs being up to 60 per cent higher in urban areas than in rural areas. Data on drug law offences including possession and trafficking of drugs in Germany and Austria confirm the same patterns with main cities showing higher per capita offences than the national average (typically around 50 per cent higher in 2018)'- United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf


'Data on the annual prevalence of drug use among adults in Australia, the United States of America and the United Kingdom of Great Britain and Northern Ireland, for example, show there is much higher drug use in urban areas than in rural areas, with the divide being even more pronounced among frequent users in the United States, where, in 2018, past-month prevalence of drug use was almost 80 per cent higher in large metropolitan areas than in rural areas.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf


'This suggests that while people with higher socioeconomic status may have a greater propensity to experiment, it is among the lower socioeconomic classes that the most negative impact of the onset of recreational drug use is found, with a higher proportion of people becoming dependent. This suggests that poverty is associated with drug use disorders. Indeed, poor people living on the margins of society tend to be more vulnerable to slipping from recreational drug use into full-scale drug abuse and drug dependence because treatment facilities for intervening at an early stage in a drug career are often unavailable or unaffordable for such population groups. In this context, drug use itself may exacerbate poverty and marginalization, thus creating the potential for a vicious cycle' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf


'Over the past two decades, drug markets have become increasingly complex in terms of variety and combinations of substances used and trafficked, manufacturing processes and the organizational structure of drug trafficking organizations. There has been a rapid emergence of new substances, as well as new mixes of controlled and non-controlled substances, with an increasing misuse of pharmaceuticals, which poses new challenges for both drug demand and supply control efforts at the national, regional and global levels.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf


'Beyond internationally controlled substances, the legal status of many substances in the market differ from country to country, and sometimes within countries. This creates quite complex production and trafficking patterns in which some substances are under national control in some countries but not in others, leaving ample opportunities for producers and traffickers of the substances to select countries depending on the legal status of those substances in the respective jurisdictions, while also quickly adjusting to new controls wherever and whenever they may occur. The multiplicity of substances currently in the market challenges the effectiveness of national and international interventions because the elimination of one substance from the market easily leads to replacement by another.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf


'The situation is particularly complex for the opioids group, as both legally and illegally produced substances satisfy the non-medical demand for opioids. While illegally produced opiates, such as heroin, used to dominate the non-medical demand for opioids, the illicit opioid markets in many countries have become far more diversified over the past two decades, with a number of pharmaceutical opioids that have started to cover a substantial part of the market for opioids for non-medical purposes.

 This is creating an additional challenge for drug use prevention because, unlike the traditional hard drugs such as heroin, pharmaceuticals are often not perceived as harmful. In terms of drug control, this requires a careful equilibrium between maximizing accessibility for medical use while minimizing availability for non-medical use. It should be noted that the use of pharmaceuticals for non-medical purposes is not limited to opioids. There is also a substantial market for stimulant pharmaceuticals for non-medical use, particularly in Latin America and the Caribbean' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf



'Increases in drug use have at times also been supply driven, as users react to growing supply and the attendant falling prices by increasing their consumption of those drugs. This was the case with cocaine in recent years, among other drugs. Some of the recent changes in drug markets, such as the opioid crisis in North America and the rapid emergence of a synthetic drug market in the Russian Federation and Central Asia, can also be defined as supply driven phenomena. The expansion of the synthetic drugs market in the Russian Federation seems to be mainly linked to the Hydra darknet platform. While there may now be an established user-based demand for synthetic drugs, the initial trigger was new suppliers. The rise of fentanyl in North America was not defined by a new demand either but was the result of opportunities seized by drug suppliers to reduce costs and thus increase profit margins.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf


'While the main drug treatment interventions in Asia and Europe continue to be linked primarily to opiates, in Africa to cannabis, and in South America to cocaine, in North America there has been a shift over the past decade from the predominance of cocaine to an increasing importance of opioids. Marked shifts in the main drug for which patients receive drug treatment can also been observed at the subregional level. In a number of countries in East and South-East Asia, for example, methamphetamine has emerged as the predominant drug; in the Near and Middle East, “captagon” tablets (amphetamine), and along the eastern coast of Africa, heroin, have emerged as the predominant drugs.' - United Nations Office on Drugs and Crime, World Drug Report 2020, https://wdr.unodc.org/wdr2020/field/WDR20_BOOKLET_4.pdf


'As more countries enter the export market, the ones with local production facilities and access to cheaper raw materials will have the advantage over countries whose products come with large import costs.'
https://newfrontierdata.com/marijuana-insights/canada-goes-fully-legal/


Weekly Cannabit from New Frontier Data on the Oceania Market:

• There are an estimated 2.8 million cannabis consumers in Oceania, representing a total addressable market of approximately $5 billion USD.
• While Australia, New Zealand, and Guam have legal medical markets, and the Northern Mariana Islands recently legalized both medical and adult use, the vast majority of the total addressable market remains illicit.
• Much of the demand resides in Australia and New Zealand, the countries with both the highest rates of cannabis use and the highest GDP per capita levels in Oceania.

Weekly CannaBit from New Frontier Data

• With global demand for hemp surging, China’s sector is poised for years of dramatic growth.
• In 2017, Chinese hemp sales totaled $1.1 billion (USD), approaching 1/3 of the $3.1 billion global market, with sales forecasted to grow to $1.5 billion (up 36%) by 2020.
• In 2017, textiles accounted for about 3/4 of China’s overall sales of $823 million (USD).
• Hemp-derived CBD accounted for Chinese sales of $53 million (USD) in 2017 but is forecasted to more than quadruple (by 4.3x, to $228 million) by 2020.
• Demand for CBD products in both Japan and South Korea – countries with high relative spending for wellness and cosmetics – could further catalyze demand for China’s hemp-derived CBD

• Investors and cannabis businesses are flocking into Latin America as countries across the region expand legal access to cannabis.
• Latin America is home to an estimated 12.9 million consumers (per annual usage) who spend nearly $10 billion per year on cannabis.
• Collectively, Latin Americans annually consume over 5.1 million pounds of cannabis, which underscores the significant market opportunity as legalization extends across the region.
• Progressive cannabis laws coupled with a strong focus on building exports and low production costs have led to significant international investment into countries in the region including Brazil, Colombia, and Uruguay.
• This year, Mexico is expected to join Uruguay as the second country in the region to fully legalize adult-use cannabis following the 2018 Supreme Court’s ruling which declared cannabis prohibition as unconstitutional stating “the effects caused by marijuana do not justify an absolute prohibition on its consumption.”'

https://newfrontierdata.com/marijuana-insights/latin-americas-top-5-estimated-addressable-cannabis-markets-for-2019/

• Mexico is the second-most populated country in Latin America, with more than 1.4 million cannabis consumers, including nearly 850,000 regular (past-month) users.
• Mexico’s total potential market revenues surpass $2.0 billion, supporting between 50,000-75,000 jobs.
• Converting farms from illicit to legal grows represents a significant challenge for the Mexican government due to the activity and influence of drug cartels.
• During the latest presidential election, Mexican voters identified violence, corruption and economic growth among top concerns; the interior department reported nearly 16,000 killings in the first half of 2018 — the highest total in more than 20 years, and a rate of 320,000 over a decade.

https://newfrontierdata.com/marijuana-insights/mexicos-cannabis-market-potential/

• In 2014, Uruguay became the world’s first country to legalize adult-use cannabis: Citizens may access it through pharmacies, membership in clubs, or self-cultivation.
• The most common way that Uruguayans access legal cannabis is through pharmacies, and the number of such customers has been rising — now 77% of registrants patronize pharmacies, up from 68% in April 2018; in the past 11 months, pharmacy registrations have increased 50%.
• Since the adult-use program’s inception, Uruguay’s pharmacies have faced supply challenges due whether to limits regulating the volume of cannabis afforded to pharmacies, or complications along the supply chain.
• Only two companies—ICC and Symbiosis—are permitted to cultivate psychoactive cannabis for the nation’s 17 licensed pharmacies.
• To address increased demand for pharmacy-supplied cannabis, Uruguay’s regulating agency, the IRCCA, began accepting applications for additional psychoactive cannabis cultivators; it will grant up to 5 new licenses to applicants whether domestic or foreign.

https://newfrontierdata.com/marijuana-insights/registered-uruguayan-cannabis-consumers/


'“Europe isn’t missing out yet,” said St. Louis, who estimates the EU market could be worth $110 billion annually. “If they don’t move on this in the next two to three years, they will be.”'
https://www.bloomberg.com/news/articles/2018-10-02/marijuana-executives-see-european-market-booming-in-a-few-years


'Chile is South America's most affected country in terms of cannabis' use, with a rate of 5.6% (of the population of 15 to 64 years of age). In other countries such as Argentina and Peru, a growing trend was found toward cannabis use in the year 2005. Argentina is in the process of being decriminalising the use of cannabis in small amounts in private spaces, while the Federal Chamber of Argentina decriminalised the cultivation of cannabis in flower pots for personal use. The rate of use of cannabis in the southern region of South America in 2007 was 4.8%, according to data from a study conducted by the ONUDD and the Inter-American Commission for Control of Drug Abuse (CICAD), published in 2008. The higher rate of cannabis use at some point in life was recorded in Chile (27.1%) and the lowest in Peru (4.0%); other countries such as Argentina and Uruguay had rates of 7.2% and 5.3%, respectively (ONU, 2007).'
http://journals.sagepub.com/doi/full/10.1177/2050324515611587

• 'As part of our broader global-demand modeling efforts, New Frontier Data has developed a groundbreaking new model for estimating the worldwide total number of cannabis consumers.
• With more than 260 million cannabis consumers worldwide, the global cannabis consumer market is far larger, more geographically distributed, and more lucrative than indicated by the few legalized markets.
• Regional usage rates vary widely, reflecting cultural, social, and political differences toward cannabis globally; over the past two decades, cannabis-use rates have risen in most markets, indicating a continued growth market in coming years.
• North America (led by the U.S. and Canada) and Oceania (led by Australia and New Zealand) have the world’s highest use rates. Notably, Africa has the third-highest use rates, and recent reform measures by governments across the continent, coupled with wide-ranging applications for hemp within the continent’s developing economies, are driving new interest in cannabis business opportunities in the region.
• The size, geographical distribution, and influencing factors of global cannabis demand today will be explored in New Frontier Data’s upcoming Global Cannabis Trends Report.'

https://newfrontierdata.com/marijuana-insights/global-cannabis-usage-rates-by-region/


Article from March, 2017...the worrying thing here is that big corporations and wealthy nations are quietly going about embracing cannabis and positioning it as expensive pharmaceutical medicine through their laws and trade structures...the vast majority of poor nations and poor people worldwide are still being led to believe that cannabis is a dangerous narcotic drug not to be grown or used...

'Over the past year, federally licensed medical cannabis producers like Peace Naturals, Tilray, and Tweed in Canada have exported to Germany, Croatia, New Zealand, Brazil, and Chile. In the Netherlands, the longtime cannabis company Bedrocan has shipped product to Canada, Australia, and European Union nations. Meanwhile, the Dutch government’s Office of Medicinal Cannabis sends shipments of medical marijuana to Italy, Germany, and Finland.'
https://www.leafly.com/news/industry/legal-international-cannabis-trade-already-exists-mapped


'Investor interest has been especially concentrated in cultivation and production, as Australia lays the groundwork to become a major exporter to the global medical market. Its progressive cannabis laws, evolving medical regulations, and high rates of social acceptance could allow the country to make significant headway in scientific and medical research, while also producing high-quality cultivars to give Australia’s cannabis industry the distinction it needs to stand out in the international market.'
https://newfrontierdata.com/marijuana-insights/examining-the-oceania-cannabis-market/


A lot of these countries look like importers in desperate need of supplies themselves. Maybe Canadian companies operating out of these countries or with tie ups with them.

'Countries that legally shipped CBD to Canada last year included China, Colombia, Germany, Italy, Jamaica, Spain, Switzerland, the United Kingdom and the United States, according to Health Canada.

Why is there a shortage of such a popular product?

Market watchers say regulated cannabis companies aren’t making enough CBD products, either because they misread market demand for the extract or because they’re choosing to grow and sell higher-margin marijuana with THC.

“Most people in the industry are aware of the popularity of CBD products,” said Matt Maurer of Toronto-based Torkin Manes cannabis law group, “but I suspect that most licensees misread the market and thought that the interest was primarily in CBD-rich edibles, topicals and concentrates, all of which are products which are not yet legal.”'
https://mjbizdaily.com/cbd-imports-canada-fail-fill-supply-gap/


'Dutch Health Minister Hugo de Jonge and his German counterpart, Jens Spahn, agreed to more than double medical cannabis shipments from the current 700 kilograms (1,543 pounds) per year to 1,500 kilograms, according to the Der Spiegel newspaper.'
https://mjbizdaily.com/germany-turns-to-netherlands-medical-cannabis/


'Two Canadian-based companies are turning to acquisitions and supply agreements to address a “systematic” shortfall of medical marijuana in Italy that’s estimated to be in the thousands of kilograms.'
https://mjbizdaily.com/italy-addresses-systematic-medical-marijuana-shortage-canadian-imports/


'Marijuana Business Daily projects Michigan’s recreational cannabis market will generate $1.4 billion-$1.7 billion in annual sales within several years of launching, making it one of the largest in the nation.'
https://mjbizdaily.com/michigan-legalizes-recreational-marijuana-creating-potential-1-7-billion-market/



'Beau Whitney, New Frontier Data Vice President & Senior Economist, discusses the economics of a fully-legalized cannabis market in Oregon with Bloomberg's Joe Weisenthal, Caroline Hyde and Romaine Bostick on "Bloomberg Markets: What'd You Miss?'
https://www.bloomberg.com/news/videos/2018-10-04/-tremendous-opportunity-in-oregon-cannabis-market-new-frontier-s-whitney-says-video



'With marijuana legalization measures expected to pass in 13 more states by 2025, the legal pot market would reach more than $30 billion, according to an industry report released Thursday. '
https://www.rollcall.com/news/policy/pot-business-expected-to-boom-lighting-up-pressure-on-lawmakers


'Deloitte said that total cannabis spend could surge by as much as 58%, partly because users will be prepared to pay a premium for legal access to the drug.

Regular marijuana consumers will increase purchases by up to 22% under the new law, the consultancy estimated.'
http://wtvr.com/2018/06/07/legal-marijuana-could-spark-a-4-billion-industry-in-canada/


'More broadly, the passage of the Farm Bill represents a sweeping change in the balance of power in global hemp markets. The United States has historically been an importer of hemp products from Canada, Europe, and China. Now, with the Farm Bill as its tailwind, the U.S. hemp market will expand to lead the global hemp industry by 2020, representing 32% of a 5.7 billion global market in 2020'
https://newfrontierdata.com/marijuana-insights/u-s-hemp-cbd-market-to-triple-by-2022/


'Israeli companies - benefiting from a favourable climate and expertise in medical and agricultural technologies - are among the world’s biggest producers of medical cannabis.

The finance and health ministries estimate exports could raise tax income by 1 billion shekels ($265 million) a year.'
https://www.livemint.com/Politics/DeyuOKPlh7zY4wFZsGYYCJ/Israeli-lawmakers-approve-medical-cannabis-exports-law.html


'Both the Ministry of Health and the Ministry of Finance recommended the export of medical cannabis from Israel in August of last year. The joint committee estimated the Israeli export market could be valued between NIS 1 to 4 billion ($US275 million to over $US1 billion), and that exports be carried out under the regulation of the Ministry of Health. But Netanyahu froze discussions over the regulations in February, and no progress has been made since then.'
https://www.timesofisrael.com/weed-firms-fume-as-government-rolls-with-cannabis-research-but-stubs-out-exports/