Global Cannabis Market Size Expected To Reach $489 Billion By 2027 At A CAGR Of 24.6%
FinancialNewsMedia.com News Commentary
PALM BEACH, Fla., Nov. 1, 2022 /PRNewswire/ -- The legal cannabis business is expected to generate billions of dollars as Investor confidence has grown as more countries legalize cannabis and use rises. According to Emergen Research, a recent study, 141 million Americans, or 43 percent of the adult population, use legalized cannabis. By 2025, legal purchases in regulated marketplaces are expected to meet 42 percent of total yearly cannabis demand in the United States. This is a 24% increase over 2020. The predicted increase in consumer demand is attributed to a jump in legal market expenditure as well as the conversion of current illegal market consumer spending to legal controlled sources. The study also states 5.4 million Americans, or 2.4 percent of the adult population in the United States, will be registered patients in medical cannabis states by 2025. The picture is very much the same in countries of Europe and Asia where cannabis has been legalized. According to Emergen, the global Cannabis Market size is anticipated to reach USD 48.29 billion by 2027 at a CAGR of 24.6%. Increasing beliefs and proven studies that suggest the cannabis to be a favorable plant for usage in multiple medications treatments, have been remarkably helping in the market growth. Improving lungs capacity, fighting cancer, helping in weight reduction, treating as an antidepressant, and alleviating anxiety, among others are some of the benefits that can be incubated from cannabis, and have been crucial supporting factors for the market growth. Active Companies in the markets today include: SHF Holdings, Inc., (NASDAQ: SHFS), Aurora Cannabis (NASDAQ: ACB) (TSX: ACB), Village Farms International, Inc. (NASDAQ: VFF), HEXO Corp. (NASDAQ: HEXO) (TSX: HEXO), Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON).
Emergen Research continued: "Proven medical effects of cannabis, legalization, active research genetic development and modification of the plant, and developments in cannabis intellectual property rights have all been recognized as cannabis market drivers. The market is dominated by North America. Because cannabis is widely utilized for therapeutic purposes in the United States, the industry has evolved and matured tremendously. Cannabis, as a psychoactive drug, continues to be popular among recreational and medicinal users in the United States. More established corporations outside of the legal cannabis market are expanding their footprint as the industry matures. Alcohol, cigarette, and pharmaceutical companies have all made significant investments in the cannabis sector. They've been buying up a lot of enterprises with the goal of selling cannabis in bulk the same way they sell their own products. This movement has the potential to completely (increase) the cannabis market."
SHF Holdings, Inc., (NASDAQ: SHFS) BREAKING NEWS: Safe Harbor Financial Announces Definitive Agreement to Acquire Abaca - Acquisition adds over 300 accounts and expanded financial institution relationships - SHF Holdings, Inc., d/b/a/ Safe Harbor Financial ("Safe Harbor" or the "Company"), a leader in facilitating financial services to the regulated cannabis industry, has entered into an agreement to acquire Rockview Digital Solutions, Inc d/b/a Abaca ("Abaca"), an industry-leading cannabis financial technology platform that has processed more than $3 billion in gross transactions, for $30 million. Built on modern cloud-hosted technology by banking and compliance experts, Abaca's digital-first commercial banking solutions make cannabis banking easy by revolutionizing access to cutting-edge banking and financial solutions.
Founded in 2017, Abaca works with its FDIC-insured bank partners to enable traditional banking services for operators ranging from single dispensaries to multi-state and national operators. Abaca's people, processes, and technology provide a complete cannabis solution to sponsor financial institutions, managing their regulatory risk at scale. This enables Abaca to provide cannabis businesses a full suite of specialized financial and treasury services available to the industry via its secure, digital platform.
Combining Safe Harbor's wide range of financial services and Abaca's industry-leading fintech and payment solutions will create comprehensive and streamlined banking solutions for cannabis operators. The enhanced Safe Harbor fintech platform will now offer operators desktop and mobile banking, treasury management, payment processing, cash handling, logistics, and a new payroll service launching later this quarter. In addition, the acquisition will increase management talent of seasoned cannabis fintech executives.
"We are thrilled to announce this agreement to acquire Abaca. We have worked with Dan and his impressive team, seeing them successfully scale to become an innovative cannabis fintech leader. With their ecosystem of cannabis banking and finance platform, proprietary technology, strong financial institution and banking relationships, and experienced founder-led management team, we believe Abaca is the ideal platform to help us take a large step forward in scaling our capabilities and service offerings in building the complete cannabis fintech ecosystem," said Sundie Seefried, Founder and Chief Executive Officer of Safe Harbor.
"Following its recent NASDAQ listing and key additions to the executive team, Safe Harbor is positioned to be the leader in compliant financing and banking offerings to the regulated operating U.S. cannabis industry nationwide. Joining forces with Safe Harbor enables the Abaca team to better advance our mission of empowering the cannabis community with essential financial services and innovative, affordable solutions," said Dan Roda, Co-Founder and CEO of Abaca. CONTINUED… Read this full release for SHFS at: https://www.financialnewsmedia.com/news-shfs/
Other recent developments in the cannabis industry include:
Aurora Cannabis (NASDAQ: ACB) (TSX: ACB), the Canadian company defining the future of cannabinoids worldwide, recently announced a new and unprecedented fall lineup of cannabis products. New flower products include three unique and proprietary strains from Aurora's esteemed breeding program: Electric Honeydew, Ultra Grape Kush and Organic BC White Grape OG.
"We are proud to introduce a significant number of innovative and exciting products this fall, which were developed from a deep understanding of consumer and patient interests and needs," says Lana Culley, Vice President of Product Development at Aurora Cannabis. "This extensive line up of flower innovation was made possible from Aurora's differentiated consumer preference mapping, which uniquely plots evolving cannabis preferences, and the leading work of R&D to develop a portfolio of products with the critical components necessary to compete – intense and exciting aromas, key visual and tactile attributes, and high-potency THC."
Village Farms International, Inc. (NASDAQ: VFF) recently announced its wholly owned subsidiary, Pure Sunfarms, ranked as the 17th fastest growing company by the Globe and Mail's Report on Business, which named Canada's Top Growing Companies across all industry sectors. Pure Sunfarms three-year revenue growth rate of 2,320 per cent also ranked it as the fastest growing Canadian cannabis company.
"Each recognition of the performance of our Canadian Cannabis business further highlights the strength and success of the Village Farms model and strategy in the cannabis industry," said Michael DeGiglio, Chief Executive Officer, Village Farms. "We not only led the Canadian cannabis industry in revenue growth over the past three years but have also been consistently EBITDA positive throughout that period – now 15 consecutive quarters. We look forward to continued growth and success in the Canadian cannabis market and executing on our plans to bring to bear the invaluable experience we have gained in Canada to additional opportunities at home and around the world."
HEXO Corp. (NASDAQ: HEXO) (TSX: HEXO), a leading producer of high-quality cannabis products, recently announced that the Company has entered into an exclusive partnership with TYSON 2.0, entrepreneur and cannabis advocate Mike Tyson's recently formed cannabis company.
Under the agreement, HEXO will produce TYSON 2.0's products in Canada, including TYSON 2.0's full range of flower, pre-rolls, edibles and vapes. The HEXO-produced lines will launch across Canada in fall 2022.
"We're delighted that HEXO has been chosen as the exclusive Canadian producer for TYSON 2.0 brands," said Charlie Bowman, CEO of HEXO Corp. "Our boutique cultivation capabilities and product offerings enable HEXO to elevate the consumer's cannabis experience. With their broad product range from flower to straight edge pre-rolls to edibles, the TYSON 2.0 brand fits perfectly into HEXO's market leading portfolio."
Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) recently announced that it will hold its 2022 third quarter earnings conference call on Monday, November 7, 2022 at 8:30 a.m. ET. Cronos' senior management team will discuss the Company's financial results and will be available for questions from the investment community after prepared remarks.
To attend the conference call or webcast, participants should register online at https://ir.thecronosgroup.com/events-presentations. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. The webcast of the call will be archived for replay on the Company's website.
Cronos is an innovative global cannabinoid company committed to building disruptive intellectual property by advancing cannabis research, technology and product development. With a passion to responsibly elevate the consumer experience, Cronos is building an iconic brand portfolio. Cronos' diverse international brand portfolio includes Spinach®, PEACE NATURALS®, Lord Jones®, Happy Dance®and PEACE+®.
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