From strategic cooperation and acquisition to organic growth, there are many ways to participate in the cannabis industry.
Editor’s note: This article is from WeChat public account “35 bucket” (ID: vcearth), the author Luo Jianjun.
Cannabis is an annual flowering plant native to Central Asia and the Indian subcontinent. The plant has a psychoactive (influenced spirit) attribute for industrial, recreational and medical purposes.
The three most common types are Cannabis sativa, Cannabis indica, and Cannabis ruderalis.
Cannabis grows in a hotter climate with longer days and plenty of sunshine. Therefore, it first appeared in countries near the equator, such as Colombia, Mexico and Thailand. These plants are typically 8-12 feet long and have elongated finger-like leaves that help them capture as much sunlight as possible. They take a long time to grow, but the yield is high, so planting is rewarding. They bloom in the fall, when the night is longer and will die soon after flowering. Indian marijuana flower buds are loose, intimate and light. Due to its main psychoactive compound, tetrahydrocannabinol (THC), Indian cannabis is described as having a refreshing or invigorating effect when consumed.
Indian cannabis is native to the Hindu Kush Mountains in the harsh environment of Central Asia. Today, it is widely distributed in countries 30 degrees north of the equator, such as Afghanistan, Turkey and Morocco. In order to protect itself from harsh environments, Indian cannabis produces a resin, a viscous organic substance with a high density in cannabinoids, which gives Indian cannabis a strong mental activity when taken.
This plant is usually four feet tall, much shorter than the cannabis leaf, and the leaves are wide and round, dark green, and the seeds are marbled. They are very sensitive to changes in light, andAlfalfa is similar, they only bloom in autumn and die shortly after flowering. The buds of Indian cannabis are tighter and shorter than ordinary cannabis. When you touch these shoots, they look fuller, firmer, and purple. Unlike ordinary cannabis, Indian cannabis is said to have the effect of relaxing and calming muscles.
Finally, wild cannabis native to Russia is not as common as Indian cannabis or common cannabis. This plant is usually two feet tall and has a short petiole, similar to Indian marijuana, and is ideal for growing outdoors. It has a wild and unbranched appearance that makes it highly resistant to pests and diseases.
One major difference between Oxytropis and other species is that Oxytropis is self-pollinating; over time, they automatically enter the flowering state (generally within 21-30 days), throughout the year. Flowering until death, while other species need to change the amount of sunlight during the day to enter the flowering stage. Wild cannabis is harvested after 10 weeks of sowing. Wild cannabis has less psychoactive properties and is therefore not used for entertainment purposes. In contrast, wild cannabis varieties are used to create hybrid species. Hybrids are hybrids of cannabis, both Indian cannabis genes and common cannabis genes. These hybrids are known as Indian dominant species, common dominant species or balanced species, depending on their identity.
Cannabis plants are still at rest after receiving at least 12 hours of sunshine. At this stage, the male and female plants are very similar and difficult to distinguish, although the female plants are stronger than the male plants and flowering later. As the day becomes shorter and the night becomes longer (in the fall), the plants enter the flowering period. At this stage, the density of the leaves in the upper part of the plant begins to differ, and the leaves of the male plants are less than those of the female plants. Male flowers are long, clusters loose, 6-12 inches long; and female flowers are tight, densely clustered. The main source of cannabinoids is the unfertilized flower head, calyx and upper leaves of female plants.
In the wild, the growth of cannabis is limited due to lack of nutrition. It produces only a small amount of seeds, fiber and oil compared to cultivars. To maximize the quality of production for entertainment and medical use, cannabis is produced in a greenhouse or in a closed room with hydroponics to control environmental conditions such as water, temperature and light.
Pharmaceutical Cannabis Market:Major Psychoactive Substances
Scientists have discovered 483 unique compounds in cannabis called cannabinoids that have profound effects when interacting with human receptors. The most important of these is tetrahydrocannabinol (THC). THC is produced by drying or heating plant matter by smoking or cooking. When tetrahydrocannabinol binds to some receptors in the brain and immune system, it alters the function of the brain, including relaxing, relieving pain and increasing appetite.
Other important compounds found in cannabis are cannabinol (CBD) and cannabinol (CBN). CBD does not haveMentally active, and unlike THC, it does not bind to receptors in the body. It stimulates activity without binding to the receptor, promoting the release of certain unique chemicals naturally produced by the body, thereby stimulating the receptor and enhancing the overall effect of the body. The CBD has been found to have anti-anxiety, anti-psychotic, anticonvulsant and sedative properties, and people are increasingly interested in its role. On the other hand, CBN has a mild psychoactive activity and increases the effect of THC. When THC is exposed to oxygen and light, CBN is produced and found to have antidepressant and sedative effects. Cannabis has a higher THC content, while Indian cannabis has a higher CBD content.
Cannabis in medical applications
The medical use of cannabis has not been rigorously tested globally due to production constraints and government regulations. The US Food and Drug Administration (FDA) has not approved cannabis as a medicinal plant because there is not enough research on the human body to show that the benefits of cannabis mask its use. However, evidence and research indicate that cannabinoids in cannabis can be used to treat many diseases. In fact, cannabinoids are also produced in the human body, which plays an important role in memory, attention and thinking, time awareness, physical activity, pain, appetite and feeling.
History of Cannabis Medical
Medical cannabis originated in China and spread to Asia, the Middle East, Africa, and later spread around the world. In 2737 BC, Shennong discovered that marijuana can treat diseases and symptoms such as rheumatism, constipation and mental paralysis. In India, bhang is a cannabis drink made by mixing the leaves, flowers and stems of cannabis with yogurt or milk for the treatment of heat stroke and dysentery, and improving digestion and other gastrointestinal diseases. In 70 AD, the Greek doctor Pedanius Dioscorides mentioned in his book “Medical Problems” that the juice made from cannabis leaves is used to treat ear pain. In the early 19th century, Irish doctor William Brooke O ‘Shaughnessy promoted the use of cannabis in the United Kingdom and the United States, and used cannabis to relieve rheumatism and rabies, cholera and tetanus pain.
Current medical conditions
At present, tetrahydrocannabinol and CBD are two major cannabinoids found to be of medical importance. It has been observed that tetrahydrocannabinol increases appetite, reduces nausea, and contributes to muscle control problems. CBD also reduces inflammation and pain, and reduces seizures. It can be used to treat addiction and mental illness. Preclinical and clinical trials in these areas are ongoing.
Dronabinol and Nabilone are two FDA-approved THC synthetic drugs. They are used to treat nausea and vomiting in chemotherapy patients. They also help to reduce pain and are also used to increase the causeAIDS reduces appetite. Dronabinol is manufactured by Unimed Pharmaceuticals, a subsidiary of Solvay Pharmaceuticals, under the trademark Marinol. Nabilone is produced by Valeant Pharmaceuticals International under the trademark Cesamet.
In addition to the United States, Germany has approved Dronabinol, and Nabilone has been approved by the United Kingdom, Austria and Mexico. Like natural cannabis, these synthetic drugs also standardize the concentration of tetrahydrocannabinol, but do not contain several other compounds found in natural cannabis. Nabiximols (Sativex®), an oral spray from GW Pharmaceuticals, is the first plant-derived cannabis prescription to treat muscle control-related problems and is currently approved in the UK, Canada and some European countries.
Several studies have found the role of cannabis in the treatment of many other diseases. A study conducted by the University of Basil in Washington and the University of Colorado in Aurora found that cannabis helps people with Parkinson’s disease by relieving pain and tremors, improving sleep. These benefits can be attributed to the muscle relaxation and analgesic effects of marijuana. A study by GW Pharmaceuticals UK found that Epidiolex, a non-oral solution of pure plant-derived CBD, can reduce the symptoms of severe seizures in children with syndromes; this drug reduces seizures from 40 times a day to less than once a day. . Market research firm Evaluate Pharma expects epidiolex to be one of the top ten new drugs launched in 2018, with sales reaching around $1 billion by 2022
The 1975 study “Cannabis Smoking and Intraocular Pressure” concluded that marijuana is also used to treat and prevent glaucoma, help slow the progression of the disease, reduce intraocular pressure, and prevent blindness. In addition, according to researchers at the Salk Institute, a well-known biomedical research institute in California, cannabis can help treat Alzheimer’s disease by slowing the formation of amyloid plaques and blocking enzymes that produce amyloid plaques in the brain. . Cannabis also helps treat fragile X syndrome (a hereditary disease) and reduces symptoms such as anxiety, tantrums and hyperactivity. A cannabis-derived gel produced by Zynerba Pharmaceuticals demonstrates this in a mid-term study.
In addition to the side effects of cancer and chemotherapy, studies have shown that cannabis extract is also effective against cancer. Dr. Kristen Sanchez of the Compulsory Education University of Madrid, Spain, was the first to discover that cannabis has anti-tumor effects. Since 2000, she has been studying the effects of cannabis on cancer. Sanchez found that tetrahydrocannabinol kills brain tumor cells in laboratory culture dishes. Her research on animals shows that cannabis can be used to treat breast cancer. She and her research team also found that whenWhen THC and CBD are used together, the therapeutic effect based on cannabinoids is enhanced.
Today, there is ample evidence that cannabis can effectively treat cancer. Recent studies on animals under laboratory conditions have shown that cannabis extract can kill certain cancer cells and shrink the size of other cancer cells. A cell culture study of rodents showed that purified cannabis plant extracts can slow the growth of advanced brain tumor cells. Another study in mice showed that THC and CBD can increase the effect of radiation on killing cancer cells.
Dr. David, Principal Investigator of the Meiri Project, involved research involving 50 varieties of cannabis varieties affecting 200 cancer cells. The results show that cannabis kills breast and brain cancer cells and is expected to continue to expand its application. Sex. A 2007 study by Harvard Medical School found that tetrahydrocannabinol is effective in lung cancer. One of the advantages of a cannabis-based treatment is that it kills cancer cells without harming nearby normal cells, whereas traditional chemotherapy cannot target cancer cells alone.
Medical cannabis is also likely to be resistant to opioids in the United States. More than 100 million Americans suffer from chronic pain and rely on opioid analgesics such as vecodine. According to the US Centers for Disease Control and Prevention, in 2015, overdose of opioids caused more than 33,000 deaths. In April 2018, the FDA banned Opana ER, an opioid analgesic, on the grounds of public health.
Cannabis-derived drugs are increasingly being considered as opioid substitutes because of their low addiction and the risk of overdosing. A number of well-known studies have shown that states that have legalized medical marijuana in the United States report fewer opioid-related deaths, while those associated with cannabis overdose are zero. In 2017, the American Journal of Public Health published a study that found that after the legalization of recreational marijuana in Colorado, the number of deaths associated with opioids fell by 6%.
In 2016, the American Medical Association published a report in a journal stating that the number of deaths associated with opioids fell by 25% in states where marijuana medical was legalized. Another study conducted by Columbia University in 2015 found that smoking medicinal cannabis helps patients to reduce withdrawal symptoms caused by heroin abuse or prescription painkillers. Although there are no marijuana-based painkillers approved by fda, some drug manufacturers (such as Axim Biotech, Nemus Biosciences, and Intec Pharma Ltdare) have begun to develop cannabis-based painkillers – opioids. Alternative to drugs. The medicines of these companies are at different stages of development.
The prospect of medicinal cannabis market
According to Grand VIew Research estimates that the global cannabis market is $11.4 billion in 2015, with a projected compound annual growth rate of around 17% and will reach $55.8 billion by 2025. As more and more states in the United States become aware of the legal use of marijuana and the legalization of medical uses, the medical use of cannabis is expected to increase. This, along with recreational uses, is expected to be the main driver of cannabis demand. The growth of cannabis-related research and development activities will also affect demand.
US Medical Cannabis Market Size
Chronic pain is the largest part of medical cannabis use in 2015, accounting for 39.6% of revenue. However, the fastest-growing application is expected to come from the cancer sector, with a compound annual growth rate of 18.2% in 2015-2025, mainly from North America and Europe. In 2015, the North American medical cannabis market share was 49%, with a compound annual growth rate of 22.0%, which is expected to be the fastest growing market for medical cannabis between 2015 and 2025. According to data from the New Frontier, the US medical cannabis market is worth $4.67 billion in 2016 and is expected to grow at a compound annual growth rate of 12%, reaching $13.22 billion by 2025.
The turning point is coming
In addition to marijuana for entertainment and medical purposes, there is a range of marijuana-related consumer products, including beverages (from soft drinks, coffee and hypnotic tea, to non-alcoholic “beer” and “wine” with marijuana) Edible foods (such as chocolate and snacks) and topical ointments. Tobacco and painkiller manufacturers are also paying close attention to these markets.
As Deloitte’s 2018 report on cannabis, “a society in transition, an industry that is about to prosper”, current cannabis consumers want to buy most of their products at physical retail stores. Knowledgeable staff and clear price displays are expected to be key factors in the success of marijuana retail stores. In the process of winning customers, retail bases such as convenience, customer experience, product selection, product and location security may be as important as those of more traditional market segments.
Cannabis is one of the few products that has nurtured a new consumer category, and the time is ripe for forward-looking companies in consumer packaged goods (CPG) and retail consumer markets.
With marijuana food:A young but powerful market
Cannabis market in Canada, including medical, illegal and legal entertainment products, is expectedSales in 2019 will reach $7.17 billion, of which $4.34 billion will come from the entertainment market legalized in October 2018.
Some states in the United States have legalized recreational marijuana, which provides informational data on the development of cannabis in the retail sector. In Colorado and Washington, sales of recreational marijuana have grown at a CAGR of 24% over the past four years
It is worth noting that while some state programs have legalized cannabis in the United States, cannabis remains a Schedule 1 drug in the US Controlled Substances Act and is federally banned.
The value of cannabisdiol (CBD)
Although marijuana is known for its “exciting” qualities, many consumers are reluctant to consume cannabis products because of their mental effects, but still want to experience the therapeutic effects of marijuana. As a result, demand for cannabinol (CBD)-based products is also rising in North America and around the world. Cannabidiol (CBD) is a non-psychoactive ingredient of cannabis, which means that unlike tetrahydrocannabinol (THC), cannabidiol is reported to have a therapeutic effect but does not produce excitement.
Consumers’ demand for CBDs is so large that Canadian CBD-based products have a higher stock-out rate than any other legally available product. This unique compound is expected to become a game changer in the cannabis field.
Subversive market
Cannabis drinks are a rapidly growing subcategory in the field of cannabis food. In the United States, recreational marijuana is legal, and between September 2017 and September 2018, sales of cannabis-containing beverages increased by 61% year-on-year. However, in the United States, as alcohol is regulated in the federal and state, the Tax and Trade Bureau announced in 2018 that it “will not approve any formula or label for alcoholic beverage products containing substances subject to federal law, including marijuana.”
Although the medical community is interested in the potential benefits of the CBD, the substance will still be subject to review by the federal government, just like any other drug. In December 2018, the US Food and Drug Administration (FDA) wrote that they “treated products containing cannabis or cannabis-derived compounds, just like we treat any other FDA-regulated product—meaning they are regulated by the FDA. The products of any other substance are subject to the same regulations and requirements.”
The significant difference between the Canadian market and the US market is that Canada allows federal size. The Canadian draft regulations issued in December 2018 state that tetrahydrocannabinol should not be mixed with alcoholic beverages. This specification may create opportunities to produce alcohol injected into the CBD throughout Canada.
From Dim Sum to Coffee
Edible foods containing cannabis may be one of the latest segments of the cannabis field, but it is quickly attracting attention, especially among cannabis consumers who prefer non-inhalation options. Taste is the key to consumers, and a 2018 report shows consumers’ strong preference for baked goods, chocolate, sweets and beverages. Although cannabis consumption accounts for only a small portion of the entire cannabis market, it is expected that 6 out of every 10 cannabis consumers will choose to consume cannabis products when analyzing the current developments in the legal market.
Possible Types of Cannabis-Containing Food Products
Innovation and brand awareness are important
Expanding the food business requires a thorough understanding of a rapidly maturing market. Such work can be expensive if priority is not given to proper planning and extensive research. Many edible food manufacturers and distributors are getting inspiration from craft beer manufacturers. Craft beer makers have created a sustainable brand in a more manual way, overturning the beer industry.
Building a solid brand by providing consistent products is critical to leaders in this industry. Unlike many other retail categories, marijuana must be persuaded to stop buying from a mature black market.
More than half of today’s cannabis consumers say that offering better quality products and a range of price points will help them stay away from the illicit market.
The possible proportion of Canadian consumers purchasing cannabis products through legal channels is expected to reach 63 %
Regulatory and legalization
One country that deserves attention is Canada, which legalizes recreational marijuana and opens its doors to hundreds of companies, hoping to profit from the $7 billion market (only in 2019). The demand is so high that suppliers in many provinces have been out of stock. Consumers seem particularly eager to buy products such as pre-rolled cigarettes and oil-based products with high CBD content.
Canada is the first country in the G7 to legalize cannabis for entertainment. The bill came into full force on July 1, 2018. According to data from Deloitte Canada, the market for illegal cannabis in Canada is $4.9-8.7 billion. After legalization of cannabis, its market size is likely to increase to more than $22.6 billion. According to the Canadian Bureau of StatisticsIn 2015, 3.6 million Canadians (12% of the total population) used marijuana in the past two years, 9% in the past three months and 3% in the past month. The government said that with the legalization of marijuana, this number is expected to increase, encouraging people who have not used marijuana to try marijuana.
Many Canadian companies have established partnerships with leading companies in the wine, food and tobacco industries to further strengthen marijuana’s position as a product category that will affect other retail sectors.
Canadian licensed manufacturers are also acquiring their competitors at a faster rate in order to profit from a highly competitive market.
What is charm?
In a report, respondents first told the researchers why they wanted to smoke marijuana. According to the survey, when asked about who needs marijuana, about two-thirds of current casual consumers say they use marijuana to help them relax, sleep, or reduce stress and anxiety.
We also learned that consumers say they will buy marijuana more frequently after legalization of marijuana, while less frequent consumers want to spend more. Such consumer trends suggest that cannabis consumption has or will soon become a normalized activity, far from the stigma attached to it decades ago.
Compliance data
Data-driven marijuana players are expected to be leaders in the CPG/retail market. Identifying opportunities, targeting specific customers, maximizing the market share of competitors, and screening sales data to identify trends in consumer behavior are all critical tasks. As production innovation continues to drive sales and profit growth, these players will need to harness the capabilities of complex cannabis ecosystems to take advantage of the rapidly evolving business model.
The key to more successful development and expansion of the cannabis and related product markets is:
1. Research the latest trends in cannabis consumption
2. Building a strong brand image
3. Deliver consistent products
4. Provide a wide range of products, especially in the edible area
5. Analyze and utilize sales data
The opportunity is knocking on the door
Companies that engage in early conversations with consumers, establish distribution and retail relationships, and build a diverse lineup of CBD and THC products are more likely to be prepared to adapt quickly to the evolution of the regulatory environment and the shift in goals.
From strategic partnerships and acquisitions to organic growth, there are many ways to participate in the cannabis industry. Before implementing a business plan, you should carefully consider the ideal route to participate in the industry in order to win in this track full of other competitors.
In the near future, 35 Fight will continue to pay attention to the cannabis industry in foreign markets.The development of the field, as well as the latest trends of domestic cannabis companies, please pay attention!
References:
01Cannabis: A turning point for society,an industry quickly maturing;02Cannabis Industry Overview
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