Cannabis research firm New Frontier Data has released a new report in which it projects that the value of the total cannabis industry will reach US$51 billion by the year 2025.
Also this week, a few cannabis companies announced new international ventures. This side of the space is full of potential, but is relatively new compared to markets like the US and Canada.
Keep reading to find out more cannabis highlights from the past five days.
Market data pegs cannabis value at US$51 billion by 2025
New Frontier Data’s new report, titled “The Global Cannabis Report: Growth & Trends Through 2025,” gives consumers and stakeholders a wide look into the firm’s revamped expectations for the industry.
“Our granular approach, accounting for the unique forces at work in each country, region and market, sets us apart from other findings that rely on generalized high-level assumptions and result in misinformed and rudimentary projections,” Giadha A. DeCarcer, founder and executive chair of New Frontier Data, said about the research company’s approach.
The team’s key findings include the expectation that spending on adult-use cannabis will grow from US$415 billion in 2020 to US$496 billion by 2025, a compound annual growth rate of 3 percent.
The study also points to the potential of “canna-curious” consumers, who could represent a new wave of growth for the industry overall.
The report marks a few firsts for New Frontier Data. It has begun to build “custom predictive models” to mark the growth of 23 regulated medical cannabis markets and six adult-use markets across 24 nations.
International opportunity expands with new deals
This past week, three cannabis companies told their investors about ambitious plans centered on pursuing opportunities at the international stage.
A subsidiary of Halo signed an agreement to with Cantourage, which in addition to the European opportunity includes a deal for a facility expansion in Lesotho in Southern Africa.
For its part, Avicanna secured a product registration for its Pura Earth branded CBD cosmetic items in Ecuador. The company is moving full steam ahead after also doing its first commercial export.
“It’s important to recognize the continued trend of medical and adult-use cannabis legalization sweeping across the globe,” Luis Merchan, president and CEO of Flora Growth, said.
Cannabis company news
- Acreage Holdings (CSE:ACRG.A.U,OTCQX:ACRHF) announced it will sell its assets in Oregon, including four dispensaries under the Cannabliss name. “With the sale of the Cannabliss retail operations, Acreage has exited Oregon which was negatively affecting the company’s bottom line and utilizing management resources,” the company said.
- BevCanna Enterprises (CSE:BEV,OTCQB:BVNNF) received multiple product listings and purchase orders from the BC Liquor Distribution Branch. “As a local BC-based producer of high-quality cannabis-infused beverages, we’re particularly excited to launch these award winning and highly anticipated products in our home province,” said Melise Panetta, president of BevCanna.
- Rubicon Organics (TSXV:ROMJ,OTCQX:ROMJF) told the market four new products will be introduced to the Ontario Cannabis Store system. Alongside these new orders, the company confirmed additional orders from BC and Alberta officials. “Rubicon Organics has built a very credible reputation through its flagship super-premium brand Simply Bare™ Organic, and this is resulting in high demand for our newly launched premium and mainstream brands,” Jesse McConnell, CEO of Rubicon Organics, said.
- Ayr Wellness (CSE:AYR.A,OTCQX:AYRWF) will buy the assets of GSD NJ, a company based in New Jersey. The deal will bring Ayr three dispensaries alongside an established facility and one under construction. The deal is worth US$101 million.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: BevCanna Enterprises is a client of the Investing News Network. This article is not paid-for content.