Global Cannabis Market Revenues Predicted to Surpass $42 Billion by 2024
Palm Beach, FL – January 12, 2021 – Coronavirus hasn’t kept some cannabis companies down… in fact, they’re staffing up even though unemployment in most other sectors soar. Dispensaries around the country that were in strong financial shape heading into the pandemic have been hiring additional workers in response to robust demand for marijuana products. Almost all states have allowed pot shops to remain open, even though vast swaths of the retail economy have been shuttered for weeks. The coronavirus sales boom, sparked by panicked shoppers worried that dispensaries might be shuttered — quickly plateaued, and most shops report that they continue to do brisk business. In fact the market is projected to grow over the next several years. A report from Archview Group & BDS Analytics, that said that the Global Cannabis Market is expected to reach to $42.7 Billion by 2024. It said: “That is a true testament to just how popular cannabis is among consumers and the ongoing impact of new markets coming online and maturing. The possibilities are boundless as political progress opens up more markets across the world, and struggling markets sort out their regulatory framework.” Active Cannabis companies in the markets this week include NxGen Brands Inc. (OTCPK: NXGB), ISW Holdings, Inc. (OTCPK: ISWH), MediPharm Labs Corp. (OTCQX: MEDIF) (TSX: LABS), GrowGeneration Corp. (NASDAQ: GRWG), Sundial Growers Inc. (NASDAQ: SNDL).
Another report from Grandview Research, goes even further saying that the Global legal marijuana market size is expected to reach USD 73.6 billion by 2027 and is anticipated to expand at a CAGR of 18.1% during the forecast period. It said that the increasing legalization of cannabis for medical as well as adult-use is expected to promote growth. Yet another report in Fortune Business insights projected that the Global Cannabis Market Size Is Predicted to Reach $97.35 Billion By End Of 2026 with A CAGR of 32.92%. Grandview continued: “Based on product type, the legal marijuana buds segment accounted for the largest market share in terms of revenue and was valued at USD 9.1 billion in 2019. Buds are primary plant products and are readily available without any processing, which makes them relatively affordable for low-income patients. Moreover, the rapid onset of action of smoking buds compared to other types is anticipated to further fuel the segment growth.
NxGen Brands Inc. (OTCPK: NXGB) BREAKING NEWS: NxGen Brands, Inc. Announces Partnership with Digital Supply Chain and Blockchain Developer to create a Proprietary Cloud based Framework for Delivery Services and Licensing to MJ Dispensaries Nationwide – NxGen Brands is pleased to announce that it has partnered with a digital supply chain & blockchain developer to allow the Company to enter into the rapidly growing U.S. cannabis dispensary delivery services market. The partner, Bengala Technologies LLC, is a nationally recognized developer in this field located in West Palm Beach, Florida.
The partnership with Bengala Technologies LLC (https://bengalatech.io), will allow the company to deliver its own proprietary brands of flower and Leafywell™ products, and will allow it to create a national network to provide delivery services for dispensaries across the country. The sale and delivery for recreational and medicinal cannabis is projected to see explosive growth through 2027 reaching $73.6B, and this transaction allows the Company to be at the forefront of the projected wave.
A cannabis dispensary delivery provider must adhere to multiple local, state and national regulations, including licensees, transportation and delivery requirements. The blockchain digital supply chain technology apps to be developed for the Company will address these issues and allow the Company to be compliant and adhere to the regulations across all national markets.
“Angel Burgos, the Company CEO said: “Cannabis companies that provide delivery services – including delivery operators and retailers – are seeing a deluge of orders as customers stock up on marijuana products in the wake of current pandemic concerns. Our hope is that, after opening projected operations in California, Michigan and we will then do the same in Florida. Initially for medicinal delivery services while awaiting pending recreational approval. Internal research has demonstrated that faster delivery can spur increased sales and help to increase revenues.”
Bengala Technologies LLC, achieved excellence in the field of blockchain consulting and development by creating and deploying custom decentralized blockchain and supply apps including Supply Chain, Blockchain and Smart Contract Development applications.
Mr. Arnaldo Detres, the Managing Director of Bengala Technologies LLC said: “There are so many variants of regulations in the cannabis delivery services and blockchain can meet these regulatory and supply side needs from available inventory and supply to delivery for the proposes of local authentication and validation rules. Blockchain can enable more transparent and accurate end-to-end tracking in the supply chain organizations can digitize physical assets and create a decentralized immutable record of all transactions, making it possible to track assets from production to delivery to end user.”
According to a recent report by ArcView Market Research and BDS Analytics, the global licensed dispensary sales of cannabis will reach $40.6 billion by 2024, registering a CAGR of 24.5%. The US will account for about $30 billion or 73% of the global cannabis dispensing market in 2024. It is projected that by 2024, the retail dispensing sales of legal recreational cannabis will cross $26.7 billion, whereas the revenue generated from the sales of medical cannabis will reach $13.9 billion. The retail sales of THC containing products from licensed dispensaries across the US will feature growth of nearly 300%, i.e., from $8.4 billion in 2018 to more than $24.7 billion in 2024.
The partnership will allow NxGen Brands to produce and ship via its proprietary direct delivery network with the software and technical technologies created by Bengala Technologies LLC, both existing CBD based SKU’s and cannabis-based products. This will allow the Company to market throughout the states which have recreational and/or medical and continue to establish and grow the Leafywell™ branded products. The transaction also aims at interacting with other companies and expanding the licensing deal possible focusing on combining its brands with medical licensed producers, to shape how future cannabis brands operate in the United States. To read this and more news for NxGen Brands, please visit https://www.financialnewsmedia.com/news-nxgb/
Other recent developments in the markets include:
ISW Holdings, Inc. (OTCPK: ISWH) recently announced that it is in the process of converting $20,000 of the Company’s cash holdings into Bitcoin. The Company also announces that it will be regularly conducting similar transactions on a quarterly basis to convert a percentage of cash flows into Bitcoin. Management expects this transaction to be completed this week. The Company began transitioning cash resources into Bitcoin with an initial transaction in March 2019 at approximately $4,000/Bitcoin.
“We believe in the future of Bitcoin and digital payment systems, and cash represents an unproductive asset given the degree of monetary expansion, stimulus, and debt dragging down traditional currency systems,” commented Alonzo Pierce, President and Chairman of ISW Holdings. “We are also on schedule to launch mining operations through our S19 Pod5 solution at the Bit5ive renewable energy project by the end of January.”
MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) recently announced that the Company record finished goods shipments of 550,000 units in the fourth quarter of 2020. These results and the update that follows reflect corporate progress of the Company’s Canadian domestic business only. The Company will provide a separate update on the progress of its Australian and international businesses.
“Shipment volume is a key measure that illustrates growing market demand and our ability to meet that demand through our GMP-certified facilities,” said Keith Strachan, President and Interim CEO, MediPharm Labs. “This new milestone is something to celebrate but also to surpass as we focus all efforts on accelerating growth and improving profitability in 2021 consistent with the action plan introduced in November.” Of the units shipped, 100,000 were owned private label MediPharm Labs Stock Keeping Units (SKUs) compared to 25,000 SKUs respectively in the third quarter.
GrowGeneration Corp. (NASDAQ: GRWG), the nation’s largest chain of specialty hydroponic and organic garden centers with 39 locations across 11 states, recently reported preliminary record full-year 2020 revenue of $192 million, versus $80 million for 2019, an increase of 140%. As the Company continues to outpace guidance, it is increasing its 2021 revenue guidance range to $335 million-$350 million.
2020 Financial Highlights are: Full-year 2020 revenue rose 140% to $192 million, versus $80 million for full-year 2019; Fourth quarter 2020 revenue rose 142% to $61.5 million, versus $25.4 million for fourth quarter 2019; Same-store sales were up 63% for full-year 2020 versus full-year 2019; Same-store sales were up 58% for fourth quarter 2020 versus fourth quarter 2019; and A total of 14 new and acquired store locations in 2020, increasing locations nationwide to 39.
Sundial Growers Inc. (NASDAQ: SNDL) recently announced it has launched high-quality cannabis derivative products under the Top Leaf brand in response to rising consumer demands for solventless cannabis extracts. This most recent launch is consistent with Sundial’s focus on premium inhalables, following branded retail offerings of flower, pre-roll and vape cartridges.
“We made a strategic decision to produce these premium products based on demand for solventless, flavorful, pure, and potent cannabis concentrates from a growing group of consumers,” said Andrew Stordeur, President and Chief Operating Officer of Sundial. “Our control of the entire manufacturing process from cultivation to extraction enables us to deliver premium quality products on a consistent basis. Adding bubble hash and other advanced concentrates to our product portfolio will expand Sundial’s share of this rapidly expanding market segment.”
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