The future of cannabinoids and all products related to hemp and marijuana production is bright. The market is in its infancy for production and understanding. Many of the changes are a result of new legislation passed in the United States and Canada for the legalization of Hemp (United States Farm Bill 2018) and the legalization of marijuana products and anything connected with them in Canada (June 2018).
The passage of legislature has lead to an explosion of research opportunities and marketing hurdles for many companies from pharmaceutical companies to new marijuana companies. The market is completely new and not completely understood yet. There are many huge possibilities and problems to surmount, but most economists are looking to see this industry explode within the next dozen years.
What are Cannabinoids?
Cannabinoids are chemical compounds that work on our cannabinoid system receptors in our brains. The chemicals are primarily found in cannabis products through hemp products producing cannabidiol (CBD) also have them. There are currently one hundred and thirteen different strains of cannabinoids in the cannabis plant alone.
What kind of products are made with Cannabinoids?
Cannabinoid products are hitting the store shelves in states all over the country. The passing of the 2018 Farm Bill legalized hemp for production and use. A lot of the cannabinoid products in production are made from hemp. For hemp products to be manufactured and sold in the United States, the product must contain less than 0.3 percent THC.
THC is the active ingredient in marijuana products and is still a banned substance by the Federal Government. Products made with cannabinoids produced from hemp and marijuana are making a huge impact on the market. The products that contain cannabinoids made from marijuana are only be sold in states where it is legal.
What is the current market for Cannabinoid products?
Across the United States and Canada, many pharmaceutical companies are working on the production of medical products that contain CBD. There are numerous products on the market right now that are marketed to cure or help with almost any medical problem. There are even medical products getting marketed for pets like dogs and cats.
How is the cannabinoid market expected to grow?
The expanding market for cannabinoid is primarily in the field of therapeutic drug manufacturing for a variety of conditions, including cancer, emesis, nausea, pain, and neurogenic diseases. A lot of the medicines getting manufactured do not require a doctor’s prescription to take.
Especially in the states that have legalized marijuana, the products containing cannabinoids are multiplying. Because cannabinoids do not get you “high” like marijuana, they are a huge draw for people looking to make their own medical choices in hand and be more natural. According to the Hemp Business Journal, as referenced by Forbes, the CBD market is expected to grow and continue to grow to a $2.1 billion market by 2020.
As noted in the article, the growth will be a seven hundred percent increase from the 2016 market. Many of the products that will stimulate growth are marijuana-derived cannabinoid products. Last year the total market sales were up to $202 million.
Greenwave Advisors, Matt Karnes, is even more optimistic with an estimated market of at least 3 billion dollars by the year 2021. The fifteen states that have legalized CBD, to some extent, are expected to join the twenty-eight that have legalized it all up to recreational marijuana.
A bill is passing through the Federal Government right now that works to decriminalize marijuana across the country, which will be the first step towards full legalization of marijuana and cannabinoid products that are made from marijuana.
More studies are underway to test various types of cannabinoids on human subjects to see how the products can affect multiple types of conditions from schizophrenia to Pain. Many of the medicines currently getting consumed are untested for full effects and reliability. While studies are still underway in the United States and Canada, many people are experimenting with what seems to work for them on their own with little understanding of possible risks or benefits of their consumption.
The only drug to currently be allowed for manufacturing under the restrictions set by the Federal Government is a drug to help treat a rare form of epilepsy called Dravet Syndrome, where sufferers can experience up to three hundred seizures a day from birth through adulthood. The remarkable drug called Charlotte’s Web CBD Oil can reduce the seizures to up to three a month.
Current research is underway to test the multitude of cannabinoid strains to ascertain the different types of products that can be produced and have significant medical effects. The pharmaceutical companies are looking further into the products to determine how they can help many human disorders and problems.
The Federal Drug Administration (FDA) is actively working with cannabis and cannabis-derived products from many of these companies to expand the current market for them. They are also working to create better regulations and rules to ensure the purity of the products produced. Because of the United States restrictions that are in place, which restricts a lot of the research into these products, much of the research is being done in Canada.
The Canadian government legalized marijuana and marijuana-derived products across the country in June of 2018, opening the door for research in Canadian pharmaceutical companies to start looking closer at products deemed dangerous for decades. A lot of the research is getting conducted alongside many of their cannabis startups.
Multiple Canadian industries are getting into the medical and recreational marijuana business to establish the extent of what marijuana, cannabinoids, and cannabidiol (CBD) can do for multiple human conditions. While many of the growing operations are still getting set up and the United States’ efforts are progressing rapidly, many of the pharmaceutical companies are importing extracts for testing and further research places like Venice or Uruguay who was the first country to legalize marijuana.
Even many tech industries are getting into the pharmaceutical business by creating customized software for multiple startups and to aide in the technological side of the research. One of these companies, Dutchie, created a software ordering system to track orders of cannabis products, but also ensure the quality of what is ordered.
The combined efforts of the medical communities, tech startups, and local and federal legalization are pushing this growing market forward. The pharmaceutical industry researching and creating products is only a small piece of the growing puzzle.
The pharmaceutical companies of Canada are leagues ahead of anything under research within the United States because of their full legalization of marijuana products. While many States within the United States are conducting their research, there are limits on what they can do because of the restrictions still in place. The Canadian pharmaceutical companies and the growing business markets with them are growing as cannabinoid therapies become more common and available to the general public.
Within the United States, there are currently more than ninety studies currently underway on various strains of cannabinoids products. The number of studies increased after the World Health Organization released a 2018 report indicating limited concerns with cannabinoid products getting produced for human consumption and use.
Usage in Market
XynaRX Pharmaceutical, a British Columbia Vancouver based corporation, aims to bring pharmaceutical solutions to the CBD industry, by infusing cannabinoids into existing over-the-counter drugs. XynaRX has obtained more than 15 formulations which include ibuprofen, acetaminophen, melatonin and other formulation with targets pain and inflammatory.
The growing market for cannabis, cannabinoid, and cannabidiol products will continue to expand. The market within Canada is so new it is still under its growing pains, and with every year, the United States sees more states moving forward with medical marijuana programs and gradual legalization of recreational marijuana.
While complete legalization within the United States might come within the next couple of years, the market for growth will continue to expand in anticipation of it. There are multiple hurdles all the new pharmaceutical companies need to pass to prove their products safe and to standardize complete legalization. It is not a fast process, and many of the possible investments might take years to see full fruition.
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