It is the most commonly cultivated, sold, and used medicinal plant in the world; As legalization efforts grow at home and abroad, cannabis is gaining more and more attention from investors, manufacturers, and researchers. Although the plant is not recognized under federal law as a Schedule I drug, the legal cannabis industry in the US was estimated at $13.6 billion in 2019 with 340,000 jobs dedicated to the treatment of the plants, according to New Frontier Data.
In total, 35 states and the District of Columbia have legalized marijuana for medical use, 16 of which allow adults to legally use the substance for recreational use, to begin with. April 2021 and that number could continue to rise, as more and more people hold the idea of legalizing marijuana across the United States.
This article examines some of the uses of cannabis and the medical market as a whole.
The 1930 movie was made to teach parents and their children about the dangers of marijuana. The film was originally intended to educate the public but has now become a cultural phenomenon and satire.
Just as opinions about movies have changed, so have people’s opinions about marijuana itself. This is true as we learn more about the drug and the benefits that can come from using it for health purposes. Once considered a prohibited drug, it is considered a controlled drug under federal government guidelines. But the stigma is being shed surprisingly, and it seems that marijuana is taking a big way.
According to a survey by Pew Research, 67% of Americans believe that the use of marijuana should be allowed. This was doubled in 2000—31%—and five times in 1969—12%.
A New York University study revealed that the percentage of 50- to 64-year-olds reporting marijuana use doubled to 9% in the past year and the use among adults 65 and older increased sevenfold over the same period to nearly 3%.
The US cannabis industry will increase to $85 billion in sales by 2030, according to Cowen analyst Vivien Azer.
Marijuana Laws by State
With Democrats in control of the House and Senate and the presidency, cannabis reform advocates hope that laws can be changed at the federal level. Politico pointed out that in 2019, 296 members of Congress (68%) represented the 33 states with limited access to the drug, which means that there are enough votes to pass the pending bill. done.
Several bills in the new Congress deal with marijuana. Cannabis companies raised $116.8 billion in 2019, according to cannabis industry research firm Viridian Capital Advisors.
We can expect this trend to continue, but it is important for US business and banking regulation. Today’s big banks are afraid of the money laundering lawsuits they will face if they do this business. In addition to the difficulty of obtaining capital, it is also a major problem for companies that operate on a financial basis. The American Bankers Association is pushing for legal clarification and to bridge the gap between federal and state laws, and we could see banks warming up to marijuana if it’s passed. bills like the SAFE Banking Act.
Former US Attorney General William Barr has announced that he will not prosecute cannabis companies operating in states where the plant is legal. He also said the current gap between state and federal laws is “irreconcilable” and needs to be addressed. He supports federal legislation banning marijuana everywhere.
President Joe Biden has said he wants to decriminalize marijuana and eliminate the criminal records of those convicted of drug possession. Currently, Vice President Kamala Harris is one of the sponsors of the bill called Marijuana Justice Act introduced by Senator Cory Booker, which will decriminalize marijuana. Harris expressed support for ending probation for those caught with marijuana and called for decriminalization and legalization.
Cannabis has been used for thousands of years in many cultures to treat ailments. The federal law that banned CBD in the United States, the Marihuana Tax Act, was passed in 1937. Acceptance of the plant as a viable option for those suffering from it, with health problems such as chronic pain or seizures in the time America.
This is thanks to cannabidiol or CBD
A natural compound found in the non-psychoactive cannabis plant. In other words, it doesn’t increase customers. CBD is sold as an ingredient in oils, mouth sprays, ices, fruits, or foods such as gum and lollipops. Providers claim that CBD can relieve pain, and fight anxiety and depression. It is also linked to helping people with cancer.
CBD has its time. Major companies such as Constellation Brands’ ( STZ.B ) Corona and Altria’s Marlboro cigarettes sold millions. Group (MO). associated with cannabis companies. But predictions for the CBD market suggest that this is not just a good thing.
New Frontier Data expects the market for hemp-derived CBD to grow from a 390 million dollar market in 2018 to a $1.3 billion market—or 3.3x—by 2022.
According to the Brightfield Group, the hemp CBD market could reach $22 billion by 2022. Maintaining her high forecast, Brightfield director Bethany Gomez said: “We are an important group of analysts and we are not only – only – I believe it is a conservative figure rose-colored glasses in terms of the complex and complex regulatory environment that surrounds the industry, two steps forward, one step back, However, this business is time-consuming, demanding and potentially explosive.
FDA and CBD: A Fragile Situation?
Under US Food and Drug Administration (FDA) rules, all drugs containing CBD, a Schedule I substance, require office approval. In June 2018, the company first approved CBD, a drug derived from marijuana. GW Pharmaceuticals (GWPH) Epidiolex has been placed on Schedule V of the Controlled Substances Act by the US Drug Enforcement Administration (DEA), meaning it has a low abuse rate.
Under federal regulations, the sale of food products or dietary supplements containing CBD is not allowed, but the FDA has indicated that this may change in the future. New steps to evaluate whether we should follow this process.” The statement was published after the Agriculture Bill confirmed that the production of hemp, the source of CBD, has disappeared.
This is good news for many businesses dealing with its complex and dismal legal status. But can investors expect all CBD to be placed on Schedule V or banned immediately? Not. CBD is not easily banned due to the international agreements signed by the US. And while Epidiolex qualifies for Schedule V, FDA-approved cannabis-derived drugs with low levels of THC can be expected to be mixed with it.
With an almost certain boom in cannabis products, experts wonder what the industry will look like. Will the big companies dominate and flood the market with generics and generics? Ryan Stoa, a law professor at Concordia University and author of Craft Weed: Family Farming and the Future of the Marijuana Industry told The Verge that it would be difficult because of the nature of the situation. Another reason he discussed is consumer preference for handmade or locally produced products.
Technology also creates business. Weed delivery company Eaze has raised $37 million and is said to be worth $300 million. He recently announced that he is working on a platform to ship CBD products to 41 states. Dutchie raised $3 million in 2018 from the business of, among others, rapper Snoop Dogg and basketball player Kevin Durant.
Expect to hear terms like machine learning, automation, and blockchain associated with marijuana a lot. Trac promises to solve the problems of the banking industry. Bloom Automation makes robots that chop and process marijuana.