This blog is designed based on insights from a leading team of analysts, consultants, and thought leaders to predict the top trends of cannabidiol (CBD) for this year.
Currently, Brexit and COVID-19 are the key reasons for the rapid legalization in the United States, including Latin America.
Here are some of the key trends of the cannabis industry for 2021:
- What is the Impact of COVID-19 on the Cannabis industry?
On one side, the outbreak of the COVID-19 pandemic has had a significant impact on the global economy. The lockdown phase caused many companies to downsize and re-evaluate their business strategies.
On the other side, it has increased the opportunities in the cannabis industry.
The cannabis dispensaries are deemed to be an essential service in Netherlands, Illinois, and Quebec; during this pandemic and lately is used as medicines for patients at multiple locations across the globe.
Additionally, CBD consumption is increased as a treatment to deal with Covid-19 anxieties. During the lockdown, many states in the United States of America approved cannabis for the medical usage prescribed by a doctor.
MGC Pharmaceuticals, Pure Global Cannabis, and Ehave are popular brand names that have acquired telemedicine services in 2020.
As per the current scenario, 2021 is experiencing a huge demand for CBD products and telemedicine services. The industry has had a positive impact on sales from adult-usage of cannabis in North America to cope up with boredom, anxiety, and stress caused by the pandemic.
- Why Federal Legalization of cannabis matter?
The lasts 2020 United States presidential election was a remarkable moment for the cannabis industry.
Five states, including Mississippi, South Dakota, New Jersey, Arizona, and Montana, have had their legalization ballots pass in the same year when democratic leaders Joe Biden and Senator Kamala Harris were elected for the White House.
Both the president and vice-president have shown their interest in handling the federal cannabis reforms during their terms in office.
Joe Biden proposed to decriminalize cannabis use and reschedule cannabis from Schedule I to Schedule II narcotic.
Kamala Harris takes a stance for the “MORE Act” to remove it from the Controlled Substances Act and imposed a 5% tax on all cannabis products that are used to serve in communities.
The USA House of Representatives passed the “MORE Act” on December 4, 2020. The bill waits for a decision in the Senate, but most probably it is going to vote in the house again in next year’s session. Depending on the Georgia Senate elections, the USA is waiting to see whether the Republicans can hold the majority power in the Senate or not.
Although the issue is addressed politically, there is a strong majority of the USA public support for the federal legalization of cannabis.
There are many cities proposing a cannabis legalization initiative, including New York, Rhode Island, North Carolina, and Virginia. It is possible to see that 2021 will be a progressive federal reform year in the USA.
- What are the opportunities considering Brexit?
As many occupy with the implications of fishing rights and competition rules, the cannabis industry hopes for a greener UK.
In 2020 the EU was in a dilemma to classify CBD as narcotic or pausing Novel Food applications for CBD companies.
The UK’s Food Standards Agency classified CBD as a novel food granting UK CBD companies in the same year. It is a head start as compared to their European competitors. Despite the insecurities in new trade relations with Europe, the UK has a good opportunity to develop its own line of cannabis and CBD regulations.
It is an advantage for the UK to develop a strong cannabinoid market partnering with potential world-leading companies. It may have few restrictions on medical cannabis trade deals between North/South America and UK cannabis cultivators and producers.
The UK’s Financial Conduct Authority permitted international and national medical cannabis companies to list down on the London Stock Exchange in September 2020.
According to the data, the cannabis industry expects to mark its presence in the list of the UK market and drive revenue in 2021.
The success of GW Pharmaceuticals’ Epidiolex is earning $100’s of millions from exporting medical cannabis companies in the UK.
- What are the CBD Regulations in Europe?
European Commission acts to realign its position on the CBD substance based on the European Court of Justice verdict on CBD. It results in the EU recommences the frozen CBD Novel Food marketing authorized applications.
Today, the marijuana industry expects EU members to follow the line of the ECJ decision and regulate CBD as a legitimate product within the relevant industries.
It comes in the wake of the UN vote to reschedule cannabis as less dangerous product. GW Pharma’s rollout the CBD medical product Epidiolex across EU states. It is interesting to see how cannabinoids will regulate. Simultaneously, both pharmaceutical products are over the counter wellness and healthy product. There is significant growth has been seen, and CBD will be a booming industry in 2021 in the USA.
- What are the current scenarios of medical cannabis exports globally?
The demand for the European medical cannabis market is expanding. It was controlled by Canadian and Dutch exports, followed by Portugal to become a major supplier, as well as smaller export successes from Spain, Australia, and Israel.
The exports from South American will have a serious impact on the shape of the supply chain. Nonetheless, European regulators to restrict imports of this kind at some stage shortly.
It is expected for Spain to have substantial growth until next year, with significant quantities coming from Israel or Colombia if they can adhere to domestic export regulations and the high product standards required by European recipients.
Cannabis was considered to be an essential service in many states and countries during COVID-19 to date. And 2021 will be an expansion year considering the cannabis market, production innovation, and its laws.
Stay tuned to see which trends are unfolding when?
Source: Prohibition Partners