MOMENTUM

The dynamic of the cannabis industry is gaining momentum. Thanks to shifting consumer sentiments, legislative victories and the availability of new products for a wide demographic, the cannabis industry has become a major economic force - there is no turning back

In particular extracted value-added products offer greater medical use, longer shelf lives, and easier access to emerging markets such as health and wellness and cosmetics. 

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The E.U has potentially 520 million consumers and is the second biggest cannabis market in the world, according to Frontier Data. Throughout Europe, cannabis regulations and the medical and scientific research that forms policy-making is fluid and poised for change. The final quarter of 2020, in particular, saw several important developments. In November, the European Court of Justice ruled that CBD is not to be considered a narcotic substance under EU Law. Just weeks later, the UN recognized the medical potential of cannabis by removing the plant and its derivatives from Schedule IV of the Single Convention on Narcotic Drugs.[1]

Lifestyle cannabis products featuring infused CBD have risen from obscurity to a multibillion-dollar industry in the space of 3 years, disrupting wellness, beverages, food and pharma in the process. CBD is seeing monumental demand in Europe, where the market is on course to grow 400% through 2023, according to the Brightfield Group[2].

Medical cannabis is also becoming increasingly popular across Europe, especially in high-income western countries such as Germany, the Netherlands, Italy, Switzerland and the UK, where an increasing number of patients have signed up with ProjectTwenty21, the National Health Services (NHS) patient registry. Overall the E.U. medical cannabis market, it is expected to achieve a market value of € 406 M by the end of 2021, a year over year growth of 75 %[3]

According to the cannabis industry research firm Prohibition Partners by 2024 Germany, in part because the German national health care system covers the cost of cannabis, will have over 1 million cannabis patients and is expected to achieve a market value of €7.7B (US$8.5B) by 2028[4]

It is estimated that the U.K. CBD market will generate £690M (US$800M) in annual sales in 2021.[5] The report concludes that the U.K. now has the most evolved regulatory framework in the world for CBD, and related consumer cannabis extracts, citing a recent ruling by the British Foods Standards Agency (FSA).  Current estimations indicate that 7.3 million people consume CBD products each year in the U.K.[6]

On Jan 15th  2021 The French Agency for the Safety of Medicines and Health Products (L'Agency nationale de sécurité du médicament et des produits de santé or ANSM) selected the companies that will work in partnership with the French pharmaceutical distributors to provide dried cannabis flower and derivatives to 3,000 patients; and on May 13th  2021 the Spanish government struck a sub-committee to study the use of cannabis for medical purposes.

The potential of the CBD beauty market is enormous. Consumers can purchase skin care and cosmetic products over the counter, without the need for a prescription.  Beauty products using natural ingredients such as CBD (as opposed to chemical additives) are beginning to dominate the cosmetic market generating US$1.3B in annual sales (2018) more than five times the US$230M in sales generated in 2013. Projected size of the global cosmetic industry is expected to reach US$438B by the end of 2026.[1]

Pet CBD is expected to be a US$1.1B market by 2025, driven by shared pet owner and veterinary knowledge regarding CBD’s potential benefits, combined with ongoing industry research and innovations.[2]

[1] Fortune Business Insights April 17 2020

[2] Brightfield Group Report May 2021

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[1] New Frontier Data Jan 19 2020

[2] Brightfield Group Report

[3] Prohibition Partners 6th Edition European Cannabis Report

[4] DW Business Mar 30 2019

[5] UK Hemp Grower May 6 2021

[6] Benzinga Dec 20 2019