Cannabidiol aka CBD blew up the global market several years ago. Previously, cannabis products were considered illegal because consumers’ attention was focused on its psychoactive side, which is provided by the cannabinoid tetrahydrocannabinol. But recent research has shown that another cannabinoid, CBD, deserves much closer attention for its therapeutic properties.
But recent research has shown that another cannabinoid, CBD, deserves much closer attention for its therapeutic properties.
What Is CBD and Why Its Market Is Growing Rapidly?
CBD (cannabidiol) is a naturally occurring phytocannabinoid found in high amounts in cannabis plants of certain strains. Structurally, CBD molecules are similar to the endocannabinoid molecules produced by the human body. Such endocannabinoids are the basis of the body’s homeostasis, they promptly block receptors like CB1 and CB2 located in the brain and throughout the body, effectively reducing pain, anxiety, and promote harmonious balance. The spectrum of CBD effects is extremely wide. Recent research shows that consuming CBD has a ton of positive effects both on the mind and body. Moreover, this cannabinoid has no effect on the human psyche, does not cause hallucinations and changes in consciousness.
Why did entrepreneurs choose cannabis for investment? The answer lies in several factors at once, which should be considered in more detail.
The first reason for investor interest is the novelty effect. People are much more willing to use new products, especially those as effective as medical cannabis products.
The second reason is good prospects for scaling a business. Cannabis itself, with the right care, can produce impressive yields, and certain strains of it produce crops several times a year. This allows you to invest in the industry, knowing that the output of the finished product will be large.
The third reason is the truly impressive demand for cannabis products. CBD-containing products are in demand today by all segments of the population. At the same time, the demand for them is three times greater than the existing supply on the world market.
Another reason is the constant improvement of the legislation of various countries. Previously, entrepreneurs in many countries wanted to invest in the CBD industry, but the illegal status of the substance was becoming a major obstacle. Times are changing, today more and more states provide legal status to cannabis and products based on it, both medicinal and recreational. Notable examples are Canada, European, and Eastern European countries that have passed laws or bills to legalize cannabis in the past few years.
The variety of products also plays a role. Since the spectrum of effects of CBD includes both effects on muscles, skin, and internal organs, as well as positive effects on human mental health, hundreds of cannabidiol-based products have already been developed. These are products for body and hair care, and useful food additives, and oils, and products for animals. In addition, one should not discount the fact that hemp, even in isolation from cannabidiol, is a plant with great potential, a source of raw materials for the manufacture of clothing and footwear, cosmetics and feed for farm animals. The benefits of investing in plants for their cultivation and processing are obvious.
And, of course, another reason is the growth prospects of the CBD market. And they impress even those who have been investing in successful projects for many years. Even the most pessimistic analysts cannot calculate exactly how much the market will grow in the long term. And in the next few years, it is planned to grow the market at least threefold.
Also, for more detailed information on investments in this industry, on our own, we advise you to visit growercash.com
Highlighting Current CBD Market’s Peculiarities
What is the CBD market looking like today? In the last decade, its centers were focused in the following countries:
Canada is one of the most valuable players in the cannabis market due to its large terrains and mild laws.
The US who are among the biggest cannabis consumers. Therefore the production of hemp and hemp products was of vital importance for it.
Western Europe with local centers in Amsterdam, London, and Spain. Here, long-lasting traditions of recreational marijuana consumption transformed into no less active introduction of legal CBD products.
Yet, there is one more area that acquires high importance on the CBD widespread map. It is Central and South America, especially Uruguay. The key factors for the development of cannabis farming in Uruguay, Colombia and Central American countries are as follow:
The warm and humid climate of the tropics is home to one of the richest CBD varieties of marijuana in its own right, Cannabis Sativa.
Weakening of legislation. Uruguay, for example, became one of the first countries in the New World to legalize cannabis.
Large areas for crops. Agrarian by their principle, the countries of South and Central America are excellent for placing greenhouses and cannabis plantations. Investors’ opportunities to provide jobs for the population of this developing region are all the more welcomed as they contribute to economic growth.
What is included in CBD production? The most successful are full-cycle manufactures where all the stages of production are performed. The very start for each CBD manufacturer is the selection of cannabis strains for future growth. At this stage, a qualified genetic or biology pro is required to evaluate every chosen strain.
Then, the process of AG routines starts. Cannabis needs to be grown, fertilized and then harvested. The raw material gets to the factory for the further extraction of CBD. There, up-to-date equipment and hi-tech methodology are used for high-quality extraction. After that, the extract is used for the creation of a final product be it a CBD concentrate, an edible CBD, or cosmetics. This is not the end yet, as every manufacturer also needs to test the production by independent experts to prove its efficiency and safety. To do this, great efforts are needed. Well, the result is paid off.
Let’s consider some cases of success of CBD manufacturers of today.
Aurora Cannabis is the second-rated Canadian marijuana manufacturer. The company was created in 2006 by Terry But and partners. Their first investment was only $5 billion. And the start of the company was only with 65 hectares in Mountain View, Alberta. In 2014 Aurora Cannabis was the first company that got a Canadian license to grow cannabis legally. After the first success, the company absorbed its competitors CanniMed and MedReleaf and created its representative sub-brands in the EU.
If looking at the US market, its biggest manufacturer Acreage Holding gaining great success, yet in 2019, it was merged with the #1 Canadian manufacturer of CBD Canopy Growth. That decision helped to increase the value of shares for both companies.
In South America, the cannabis business is developing rapidly. Among the success cases, we can mention the quick development with good results that gained Wegrower Cash Alliance – a company that implemented the principle of investment money from every man who wants to be engaged in the cannabis business. Having its manufacture and plantations in the Montevideo neighborhood, the company in a year had attracted $250.000 investments and gained an annual turnover of $1.000.000.
What Are the Perspectives of the CBD Market in the Nearest Future?
As you can see, the cannabis market is among the most attractive investment fields today. Its perspectives are quite bright due to the widespread CBD use around the world. In the nearest future, medics prognosis using CBD for cancer and diabetes therapy. There are researches that have already proven CBD’s efficiency in Alzheimer’s treatment, curing depression, PTSD, sleep disorders, and lots of other health conditions that need therapy.
One more feature that provides market growth is the trend for legalization that is supported by the BIG-8 government. Even the most radical countries are tending to soften their attitude towards medical cannabis. No matter to say that legalization of CBD in Eastern Europe and the Russian Federation will open a huge pool of consumers who will require CBD-based products. So the demand for CBD is constantly growing. Sociological research also shows a widening of the audience who are eager to consume CBD on a regular basis. Nowadays, consumers of CBD become older, they are not just young people or mid-age people. The audience today also includes aging people 60+ who have evaluated all the bright sides CBD shows for that stratum of consumers.
Due to this fact, even the most conservative forecasts show the growth of the market in 2021 up to the record $31 billion. And in the next few years, that number will increase several times. And this is just the beginning. As the manufacture of CBD is eco-friendly and useful for billions of people, its development is a certain fact. So if you are still looking for an investment that will bring you 100% guaranteed profit, it is definitely the cannabis industry and CBD products you need to invest in.
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