In journalism and media industry for more than twenty years, worked for a number of media companies. Business editing, research and PR specialist. Covering industry and science news for Ilesol Pharmaceuticals.
CBD Market Forecasts & First European Cannabis ETF
According to the Arcview Market Research & BDS Analytics data, there is a continuous growth of the global cannabis market in recent years, from 3.4 billion USD in 2014 to 13.3 billion in 2019. The company estimates that the global legal cannabis-related market in 2022 will be worth 30 billion USD. According to the Brightfield Group, CBD is expected to grow from 5 billion USD in 2019 to nearly 28 billion USD by 2023. Technavio, a company that has been monitoring the global CBD oil market since 2017, estimates that CBD oil alone will grow by 3.52 billion USD during 2020-2024.
In the USA, by far the biggest market for CBD products, with hemp and CBD federally legal following the signing of the 2018 Farm Bill, CBD sales are projected to grow to $23.7 billion USD by 2023. By 2024, total cannabinoid revenues in the USA are expected to reach 44 billion USD.
While in previous years the USA held more than 90% of the global market in cannabis-related products, the Canadian market shows significant growth since 2017 and is expected to reach 3.8 billion USD by the end of 2022. The even bigger shift comes from the European market, expected to boom over 400% from 2018 to 2023, as estimated by the Brightfield Group.
A Global Forecast to 2025 report by Research and Markets projects the global industrial hemp market to grow at a compound annual growth rate (CAGR) of 34% from $4.6 billion in 2019 to $26.6 billion by 2025.
CBD Market Forecasts: Rocketing Consumption of CBD Products
In the USA, 32% of adults have consumed CBD products in the past six months. Out of that number, 53% falls to indigestible – oils, tinctures, food, capsules, pills, supplements, and beverages. 24% of purchases fall to cosmetics and 11% to inhales.
In January 2019 London Stock Exchange published a report by Healthspan that states CBD oil has seen a meteoric rise in sales. The Cannabis Trade Association UK reported that the number of users has sky-rocketed from 125.000 to 250.000. As reported by BBC, CBD oil sales in the UK were at 300 million GBP in 2019.
The great consumption boom is followed by volatile pricing. A market report made by Leafreport shows huge discrepancies between prices for similar products that come to a staggering 3,200% overall and 1.000% between tinctures.
First European cannabis ETF
In January 2020, Canadian fund group Purpose Investments launched the first European exchange-traded fund through HANetf’s white-label ETF platform – The Medical Cannabis and Wellness UCITS ETF (CBDX). The fund is listed in Germany and made available to investors in the UK, Italy, and Ireland. The CBDX ETF consists of publicly listed companies conducting legal business activities in the medical cannabis, hemp and CBD industry across nine thematic sub-sectors:
• Producers and suppliers of medical cannabis;
• CBD focused on biotech companies;
• Hydroponics and equipment suppliers;
• Producers of medical cannabis consumer products;
• Companies leasing property to medical cannabis growers;
• Software solutions for medical cannabis producers;
• Companies with an investment focus on medical cannabis;
• Hemp and CBD consumer goods suppliers; and
• Service providers, including equipment, manufacturing, and processing.
After Canada and Europe, Latin America is the fastest-growing CBD and cannabis market in the world. According to data from fDi Markets, an FT data service monitoring cross-border investment, Colombia has positioned itself as a leading producer for the fast-growing global cannabis industry and has become the second biggest destination for cannabis-related greenfield foreign investment after the USA.