The cannabinoid market is growing globally in many different market sectors. This is due to increased research data and demand for cannabinoids. The availability of new products and the interest of consumers is reflected in the increase in the production capacity of companies. Due to this, even large, more traditional corporations have started investing in the CBD market and the production of cannabinoid-based products .
The CBD market is the fastest growing industry
For example, the Swiss Domaco, whose biggest customers are Danone and Bayer, has signed an agreement with the Australian CBD product manufacturer Creso Pharma to produce products for the Australian, European and Latin American markets.
Domaco is a leading producer of innovative products for global pharmaceutical and food companies 1 .
Such cooperation agreements also raise the profile of other large companies. At the end of 2017, the global natural food market was around 190 billion euros. With the Swiss natural food market rising to 37 million euros by the end of 2017 1 .
The anxiety and stress market was estimated to be around 3.3 billion euros in 2015. The osteoporosis market is estimated to reach 13.3 billion euros by 2021 and the osteoarthritis market to 5.5 billion euros by 2022. The animal health market is estimated to be worth 35.9 billion euros in 2018.
Creso Pharma is bringing its own CBD products to each market sector in the next few years 1 . Data company Brightfield Group estimates in a new report that sales of hemp-based CBD exceeded $190 million in the United States in 2016, and with a 55% annual growth rate, the CBD market will reach $1 billion by 2020 2 .
Since the United States Department of Health patented CBD and other cannabinoids as antioxidants in 2003 (A. Hampson. 2003), their use in cosmetic products has increased both in the United States and around the world. CBD is supposed to moisturize dry skin, treat acne, both psoriasis and eczema. Hemp extracts have become a focus for several cosmetics manufacturers, as CBD allows them to stand out from the already fierce competition in the well-known natural cosmetics market. The cosmetics market is estimated to be worth approximately 460 billion dollars globally 3 .
Medicinal cannabis has attracted interest in Finland as well, as in July 2017 the shares of the Canadian medical cannabis manufacturer Canopy Growth were the most bought by Nordnet 4 . In Finland, MP Mikael Jungner has proposed growing cannabis as a profitable business in agriculture.
The legalization of CBD products and cannabis would bring in hundreds of millions in tax revenue
The legalization of CBD products and cannabis could mean the same amount of growth in the economy and tax revenues in Finland as has happened in Colorado since the legalization of cannabis.
In Colorado’s model, which has a population the size of Finland, 30% of cannabis sales go directly to the development of Verona’s school systems, and the remaining hundreds of millions employ and generate vitality for agriculture 5 .
Canada plans to legalize the recreational use of cannabis in July 2018, and companies are preparing for legalization across the United States on the 6th , 7th , and 8th.
At the European level, the cannabinoid market is estimated to grow in the future as the largest in the world in the next five years. According to the estimates of EIHA, Nova Institute and HempConsult, the value of the European CBD medicinal market itself is approximately two billion euros 9 .
Hemp also contains more than 100 other different cannabinoids and hundreds of other compounds, from which the development of research opens up opportunities to develop more new hemp products.
As research information increases, changes to the legislation can also be expected, as it would be beneficial for the growth economy and public health to enable the CBD market and wider commercial production of hemp products.
As the growth of the cannabis industry expands, the industry of various ancillary services will also develop. The electronics giant Microsoft’s cooperation with the authorities gives indications of this. Monitoring tools for medical cannabis farms are being created by Microsoft. 8.
You can easily order Finland’s most popular CBD oil from the online store .
Sources
- Anderson, D. 2017. Cannabinoid nutraceuticals set for European take off? nutraingredients.com . Referred on 10/05/2018
- Borchardt, D. 2017. Hemp Cannabis Product Sales Projected To Hit $1 Billion In 3 Years. forbes.com . Referred on 23/05/2018.
- Whitehouse, L. 2016. Czech Republic leading on hemp beauty in Europe. cosmeticsdesign-europe.com . Referred on 23/05/2018.
- Hurmerinta, M. 2017. Small investors got excited about cannabis. arvopaperi.fi . Referred on 23/05/2018
- Mansikkamäki, E. 2017. Former SDP member of parliament Jungner: Cannabis is an opportunity for agriculture – income for provinces and schools. ruralfuture.fi . Referred on 23/05/2018
- Pape-Mustonen, T. 2017. MTK’s Marttila: “If cannabis is legalized, of course there will be entrepreneurship. www.maaseuduntulevaisuus.fi . Referred on 23/05/2018.
- Pape-Mustonen, T. 2017. Cannabis drinks from beer companies: Companies are preparing for the legalization of marijuana across the United States. ruralfuture.fi . Referenced 22.4. 2018.
- Kangas, N. 2016. From greenhouses to pharmacies of the future. Garden and shop, 15 issue. 9. Referred to on 20.4. 2018
- Carpenter, J. 2017. Report: European Medical Cannabis Market Value Forecast $59 Billion Upon Legalization. cashinbis.com . Referred on 23/05/2018
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