Top Cannabis Stocks to Watch as Europe's CBD Market Grows 400%
The European market is on course to grow 400% over the next four years, according to the Brightfield Group. "CBD is just starting to take hold in Europe, with both product availability and consumer awareness still quite limited. This is a great opportunity for developed brands to enter and expand through Europe with far less competition than we're seeing in the U.S." That's opening a wide range of opportunity for companies including The Yield Growth Corp. (CSE:BOSS) (OTCQB:BOSQF), Canopy Growth Corporation (NYSE:CGC) (TSX:WEED), Aurora Cannabis Inc. (NYSE:ACB), Wayland Group Corp. (CSE:WAYL) (OTCQB:MRRCF), HEXO Corporation (NYSE:HEXO) (TSX:HEXO), and ICC International Cannabis Corp. (CSE:WRLD-U) (OTCPK:WLDCF).
Craft Cultivators Strive to Combat Black Market Sales with Premium Cannabis
The cannabis industry is set to maintain its positive trajectory as legalization sweeps throughout the U.S., Europe, and Latin America. For instance, Jefferies Group, an investment bank, predicts that these regions will legalize cannabis for both medical and recreational use in the shortcoming years. Moreover, Jefferies projects that the cannabis industry will also penetrate into various industries such as pharmaceutical, alcohol, health and wellness, and pet supply industries. Notably, Canada made headlines in 2018 after it became the second country to ever legalize cannabis and the first G-7 nation to do so. Additionally, the remaining G-7 nations, with the exception of Japan, have all adopted partial or full medical cannabis programs, while several have decriminalized the recreational use of cannabis. Uruguay was the first country to fully legalize cannabis back in 2013. And while Canada and Uruguay have both legalized cannabis entirely, the U.S. remains the largest sole market in the industry. Despite not having federally legalized cannabis, the country still delivers billions of dollars in cannabis sales annually, largely thanks to states such as California, Colorado, Nevada, and Washington. Jefferies predicts that less regulated markets can account for nearly USD 80 Billion of the total global cannabis market value. Specifically, Jefferies projects the U.S. cannabis market to reach a value of USD 21.7 Billion by 2029, compared to Canada's estimate of just USD 5.8 Billion. Additionally, the estimated value is added onto Jefferies' base valuation for the global cannabis industry of USD 50 Billion by 2029, a figure that accounts for the countries that have already legalized cannabis for either medical or recreational use. As a result, Jefferies forecasts that the total global legal cannabis industry is positioned to reach USD 130 Billion by 2029. Pasha Brands Ltd. (OTC: CRFTF) (CSE: CRFT), HEXO Corp. (NYSE-A: HEXO) (TSX: HEXO), Charlotte's Web Holdings, Inc. (OTC: CWBHF) (TSX: CWEB), The Supreme Cannabis Company, Inc. (OTC: SPRWF) (TSX: FIRE), Emerald Health Therapeutics Inc. (OTC: EMHTF) (TSX-V: EMH)
Shifting Trends Guide Consumers Towards Function Cannabis Beverages
Consumers across the world enjoy drinking beverages packed with flavors and sweetened sugars like fructose and glucose. In 2011 to 2014, 63% of the U.S. youth and 49% of U.S. adults had consumed a sugary beverage on a daily-basis, according to the Centers for Disease Control and Prevention (CDC). The CDC also mentioned that adults and adolescents who smoke, don't get enough sleep, don't exercise as much, and eat fast food regularly tend to be more frequent consumers of sugary beverages. However, people are now beginning to become more conscious about what they consumer. According to a survey by Nielsen, 83% of North Americans changed their diet and 74% engage in physical activity to lose weight. And now, more consumers are putting sugary beverages aside and drinking healthier and more functional drinks instead. Notably, the cannabis-infused beverage market has gained traction among consumers because of its therapeutic benefits. Specifically, most cannabis infused beverages are CBD based because the compound does not induce psychoactive effects on the consumer. Research conducted has also linked CBD to successfully treating of a variety of health concerns such as acne and anxiety. Moreover, CBD is also being leveraged in the healthcare and medical industry to alleviate symptoms associated with conditions such as chronic pain, cancer, arthritis, and epilepsy. In particular, CBD-infused beverages are quickly gaining popularity in North America, largely due to the legal markets prevalent in the region. Nonetheless, more and more countries around the world are also beginning to adopt CBD for medical applications. As a result, the CBD-infused beverage market is positioned to become a thriving segment within the broader cannabis industry. And according to data compiled by Zion Market Research, the global cannabis beverage market was valued at approximately USD 1.61 Billion in 2018. By 2025, the market is expected to reach USD 4.46 Billion while registering a CAGR of 15.6% throughout the forecast period from 2019 and 2025. BevCanna Enterprises Inc. (CSE: BEV), Canopy Growth Corporation (NYSE: CGC) (TSX: WEED), HEXO Corp. (NYSE: HEXO) (TSX: HEXO), New Age Beverages Corporation (NASDAQ: NBEV), The Alkaline Water Company Inc. (NASDAQ: WTER)