The cannabis market remains small but continues to thrive rapidly. Analysts warned of the possibility that certain industries like manufacturers of alcoholic drinks may lose to this new industry. Here are the reasons for this probability:
- Marijuana consumers have more money.
- More than 70% of them drink alcohol. They may eventually substitute early evening drinks for a toke.
- Pot is now for legal for medical and recreational uses in some states.
The medical sector is the industry with the risk of losing market share to the cannabis market. The two popular cannabinoids (CBD and THC) have caught the interest of scientific researchers. CBD has shown a positive impact on epilepsy (Epidiolex), anxiety, cancers, and neuropsychiatric conditions. The United States Food and Drug Administration (FDA) recently approved the use of Cannabidiol as a remedy for two kinds of epilepsy.
Medical weed has started to replace opioid solution for chronic pain. A recent study found out that 80% of marijuana users admitted it helped minimize pain. 50% of these patients went through opioid treatment in the past. Prescriptions declined in states where medical pot is considered legal.
The mainstream pharmaceutical market will likely be affected due to the inflow of medical cannabis prescriptions. A study conducted by the University of Georgia disclosed the market share of Pharmaceutical Cannabis will reach almost $4 billion annually. With this development, many pharmaceutical firms are trying to integrate weed into their overall product offerings.
For example, medical marijuana maker Tilray from British Columbia (Canada) partnered with Sandoz Canada, an affiliate of Novartis. The latter is a multinational pharmaceutical corporation operating from Basel, Switzerland. It engages in the research and development, manufacturing, and marketing of unique prescription medications for various diseases and maladies.
Researchers discovered that in 17 American states where medical marijuana is sold painkiller prescriptions and other drugs declined sharply. The decrease was evident as physicians prescribed fewer dosages of anti-depressants (265), anti-anxiety (562), seizure (486), and anti-nausea (541).
Beauty and Wellness
CBD oils have attracted the attention of many consumers in the beauty and wellness sectors. The oil does not have psychoactive property. In short, users don’t get high. Marijuana advocates claim it provides relief from pain, depression, and tension. CBD products also reduce inflammation and enhance muscle growth. This oil has now also become an ingredient in lip balms and mascara products.
Coca Cola Corporation is was allegedly in talks with Aurora Cannabis of Canada to produce beverages with CBD. If pot becomes legal in the United States by 2030, the industry can raise around $75 billion in sales. Meanwhile, consumption of soda continues to drop. Two years ago, per capita consumption plunged to a 31-year low. The cannabis market can ultimately surpass soda sales.
The beer industry is another enterprise that can give up around $2 billion to marijuana businesses. This will certainly happen if more states legalize adult weed. According to a report from Cannabiz Consumer Group, 27 percent of beer consumers have given up the brew in favor of cannabis. The number will surely increase with more states authorizing the use of Cannabis.
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