Easing Regulations Thrust CBD into Consumer Focus
As the legal cannabis industry continues to permeate throughout the globe, more and more consumers are beginning to try products within the marketplace. Notably, cannabidiol or CBD is one of the fastest-growing segments in the cannabis industry. Widespread CBD legalization efforts have made remarkable progress over the past several years due to advancements in research and clinical trials. To note, CBD was federally prohibited in almost every nation just a few years ago. However, researchers uncovered that CBD is unlike its marijuana counterpart's dominant compound, THC or tetrahydrocannabinol. CBD and THC both exist in the cannabis plant, however, they are found within different parts of the overall plant. THC predominantly derives from the marijuana compound, which is known to induce psychotropic effects on its consumers. On the other hand, CBD primarily derives from the hemp plant, which is not known to cause psychoactive effects. Despite the differences between marijuana and hemp, federal regulators around the world deemed the entirety of the cannabis plant to be unsafe. Nonetheless, over the past two decades, researchers have worked tirelessly to disprove common misconceptions that surround the hemp plant. As a result, the hemp marketplace recently began to break legal barriers in various countries. Notably, the U.S. passed the Farm Bill in late 2018 which legalized the commercialization and transportation of hemp-derived CBD products. Meanwhile, Canada's complete legalization of cannabis in 2018 introduced a plethora of cannabis-based products, both CBD and THC-based. And while the U.S. and Canada are the global powerhouses for the CBD market, other countries have also moved to adopt CBD, even if only strictly for medical purposes. For instance, Australia, Germany, Italy, Spain, South Korea, and Thailand have all legalized specific CBD-based products to treat chronic medical ailments. While CBD is rapidly tapping into other global markets, the U.S. is expected to remain the primary driver for the market because of its large pre-existing consumer base. According to data compiled by Arcview Market Research and BDS Analytics, the U.S. CBD market was valued at USD 1.9 Billion in 2018. By 2024, the market is expected to reach USD 20 Billion while exhibiting a CAGR of 49%. Smart Decision, Inc. (OTC: SDEC), Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT), Sorrento Therapeutics, Inc. (NASDAQ: SRNE), Planet 13 Holdings Inc. (OTC: PLNHF) (CSE: PLTH), Auxly Cannabis Group Inc. (OTC: CBWTF) (TSX-V: XLY)
Rapidly Expanding Cannabis Companies Flood the Job Market
As the cannabis industry begins to heat up, companies are beginning to aggressively seek employees to fill positions. Nearly two decades ago, cannabis was reintroduced into U.S. states such as California, Oregon, Alaska, and Washington. Since then, states like Michigan and Illinois decided to legalize adult-use of cannabis. Consequently, the rapid expansion of the market is creating a large influx of jobs. And according to a report by Glassdoor, there were a total of 1,512 cannabis industry job openings in December 2018, increasing by 76% compared to the same period a year ago. Moreover, ZipRecruiter highlighted that in 2017 the number of cannabis industry jobs grew by 445%, outpacing both the technology (254%) and healthcare (70%) industries. Furthermore, following the legalization of hemp-derived CBD products, industry experts noted that the job demand continued to grow. HempStaff, a hemp and cannabis recruiting firm, mentioned in March that 80% of its job listings are for upper-level positions such as Chief Financial Officers and accounting managers. However, HempStaff Chief Executive Officer James Yagielo also noted that as hemp factories begin to ramp up production rates, companies will need "factory line people, machinists and other types of workers." Additionally, positions such as accountants, lawyers, IT specialists, financial experts, researchers, and lab technicians are also in high demand. Glassdoor noted that brand ambassadors and sales associates each accounted for 5% of total cannabis job openings in 2018, which represented the largest shares for individual positions. On the other hand, the overall professional and technical jobs accounted for 53% of the job openings. Glassdoor also mentioned that the discrepancy is largely due to the wide range of available positions. However, as the industry continues to develop, various job positions are expected to see larger demand as businesses strive to comply with regulatory matters. As a result of the growing workforce, Fortune Business Insights projects that the global cannabis industry will grow from USD 10.6 Billion in 2018 to USD 97.35 Billion by the end of 2026. Additionally, the market is anticipated to grow at a CAGR of 32.6% during the forecast period. Newleaf Brands Inc. (OTC: NLBIF) (CSE: NLB), Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON), Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT), Planet 13 Holdings Inc. (OTC: PLNHF) (CSE: PLTH), Medmen Enterprises Inc. (OTC: MMNFF) (CSE: MMEN)
Neptune Signs an Extraction Agreement in the U.S. and Expands U.S. Sales Team
LAVAL, QC , Oct. 17, 2019 /PRNewswire/ - Neptune Wellness Solutions Inc. ("Neptune" or the "Company") (NASDAQ: NEPT) (TSX: NEPT) is pleased to announce that it entered into an agreement to provide extraction services to a large U.S.-based farming services operation. Under the contract terms, Neptune will receive hemp biomass to be processed and transformed into crude oil extracts. The 2-year agreement could reach a total value in excess of US$20 million . The first shipment of biomass is expected to arrive at Neptune's North Carolina facility in the coming weeks.