The Potential Of Investing In Cannabis Companies | Everything You Need To Know
The interest in investing in cannabis (hemp, CBD, marijuana) has never been as high as it is today. Although hemp products have been gradually legalized since 2014, the true explosion happened in 2018. Ever since the Agriculture Improvement Act of 2018 (commonly known as the 2018 Farm Bill) declared that the growth and sale of cannabis products are entirely legal, their popularity has increased enormously.
Also, scientists discovered more about the plant and its medical benefits, so the demand for medical cannabis, in particular, has exploded. The predictions of the future cannabis market are promising, so many people see the opportunity to invest in cannabis stocks and companies.
If you are one of the investors, this article will provide you with every information on the potential of investing in the cannabis industry and getting great return on investment (ROI).
Let’s start by exploring the cannabis industry deeply and distinguishing a few terminologies that you may encounter on the market.
The world of Cannabis
Cannabis has been used for many purposes throughout the whole history of humanity. Ancient Egyptians, Chinese, Indians, etc., treated many ailments with this miraculous plant. Besides, cannabis has found its usage in many different aspects of human lives – for the textile, food, materials, etc.
“Cannabis” is used as a broad term for a group of similar plants, but let’s see what science says: Cannabis is the genus of flowery plants in the family of plants named Cannabaceae. Further, Cannabis divides into species named Cannabis Sativa, Cannabis Indica, and Cannabis Ruderalis.
The most known subspecies of Cannabis Sativa are hemp and marijuana. The name “cannabis” is used as a broad term for all the species and is interchangeably used for both hemp and marijuana as well. But, you have to know the most important distinctions between these terminologies. The main difference between hemp and marijuana is the amount of THC, a cannabinoid that affects people’s clarity, making them stunned. Hemp contains less than 0.3% THC, while marijuana contains much more. That’s why marijuana is not legal in most countries, while hemp is. This means that hemp products are more available to people – for online orders or purchases in stores.
Further, the cannabis industry includes marijuana, hemp and CBD industries as well.
As hemp contains more CBD than marijuana, it became famous for its CBD products – oils, gummies, topicals, etc., which popularity rapidly grew over the past few years. The popularity is, naturally, followed by increasing demand for these products. You probably know why – CBD has shown to be very effective in treating the symptoms of anxiety and depression, reducing stress, relieving pain and inflammation, improving sleep, or in short – CBD significantly contributes to people’s well-being.
It is also considered as a natural and healthier alternative to pharmaceuticals. The overall worldwide trend and popularity of natural products certainly had an impact on the cannabis industry.
Nonetheless, the usefulness of hemp doesn’t stop there. The hemp industry has a positive impact on the environment as well. For instance, hemp plants are able to seize greater amounts of CO2 than trees; and because of their deep roots and short growing time, they contribute to soil regeneration. Besides, hemp requires much less water and land to grow than the other plants.
All of this stated so far explains why CBD sales are growing over 100% annually with no end in sight. Some experts predict that the cannabis industry can reach US$30 Billion per year by 2023. Also, according to The Green Fund, worldwide consumption of cannabis products can reach US$60 billion by 2024.
If you consider investing in cannabis, hemp and CBD are more secure options than marijuana (and THC) as it is still more strictly prohibited. Therefore, in the next section, we will focus more closely on the potential of investing in cannabis, or more specifically – hemp and CBD.
The potential of investing in cannabis: hemp and CBD
Due to many reasons, people see the cannabis industry as a myriad of investment opportunities. Over the last few years, people are starting to see the potential of investing in cannabis, and early birds have already borne the fruit of their investments. As the market continued to expand, they gained a great return on investment (ROI) with steady growth.
According to the research, 33% of US citizens have used CBD, while 64% are aware of CBD and its products. Now when the CBD sector is established and regulated, acquiring more and more consumers and retaining them is highly achievable.
The potential of investing in cannabis is substantial, and a lot is happening on the market. The following facts have to be taken into account when considering investments.
#1 Rapid growth in hemp industry: skyrocket of CBD market
One of the most important trends an investor must consider is consumer behavior. When it comes to the hemp industry and CBD products, consumer sales are increasing year by year.
In 2018, after the legalization, the CBD market grew by 57%, according to the Nutrition Business Journal Hemp & CBD Guide (NBJ). NBJ found that 73% of the surveyed natural and organic product manufacturers expanded their offer by including CBD products. The same year, cannabis sales reached US$8 billion to US$10 billion, while CBD sales were over US$500 million.
By 2020, the global CBD market was worth an impressive US$7 Billion, from which the US market worth was US$1.2.
See also: Information for investors
Based on the CBD industry growth between 2016 and 2020, Global Market Insights predicts that the worth of the global CBD market will be over US$108.8 Billion in the following years. Besides the improving regulations, this enormous growth is mainly attributed to the increased usage of CBD for medical purposes and sales of CBD in reputable stores.
Through the pandemic, cannabis stocks have lost over 80% of their value, so now, when the price is low, many investors notice the occurring opportunities for investing in cannabis. However, the sales of CBD continue to grow, and many industry experts indeed see the current state of the market as an opportunity for investment, product diversification, and industry regulation.
The US CBD market is expected to reach US$19.5 Billion in sales by 2025. As the numbers continue to increase and the cannabis industry becomes one of the fastest-growing industries, more and more people will be encouraged to invest. Also, the stock prices are likely to increase, which will give you an option to sell the investment you made today at a higher price in the future.
#2 Diversity of products, industries and consumers
As the popularity and usage of CBD increases, the diversity of the products follows. Additionally, the number of places where consumers can purchase CBD increased. The CBD can be found in online stores, gas stations, retail, even drug stores.
Manufacturers found different ways to serve the people what they wanted and needed. There are plenty of products on the market – oils, salves, drinks, gummies, pet treats, vapes, even the construction materials and manufacturing components.
However, hemp as a plant has been used for many centuries since a long time ago. For instance, hemp fiber has been used for clothing, construction materials, paper, and many more.
The National Hemp Association states that hemp has the strongest and longest fiber in the whole plant world. Hemp fiber is resistant to rot and abrasion, and in today’s world, it can be found in bags, nets, canvas, and even carpet. Besides, its overall carbon footprint is about half that of cotton.
Many other industries noticed the advantages of cannabis, so today, the cannabis industry is not the only one that works with CBD. For instance, the latest trend is to use CBD oil as an ingredient in the cosmetic industry. Thus, CBD oil can be found in various cosmetic products related to skincare, hair care, make-up, etc. Another industry that crosses its path with the cannabis industry is the food and drink industry. The CBD can be used in chocolate, coffee, water, tea, protein supplements, etc.
More and more companies are becoming aware of the usability of hemp and the monetary, societal, and environmental advantages of including it in production. This diversity of product range can indicate that the hemp industry and its CBD sector will only continue to grow, significantly impacting the worth of stocks.
Diversity of consumer segments
Another thing to consider when investing in the cannabis industry is that cannabis – marijuana, hemp, CBD – is widely used among different age groups, confirmed by several studies.
In one study, most people in their 20s confirmed consuming or having consumed CBD in the past, but around 15% of people were 55 or older. Another study investigated the use of CBD oil in older adults who were at least 54 years old. The results showed that 9% of them regularly used CBD oil, which is higher than the national average.
Age is not the only parameter. Many different CBD products, naturally, find many different users. Besides, one product can have different ways of use. For instance, one may use CBD oil as an edible, while others may use it for skin or hair care.
Additionally, even pets can consume CBD – the same CBD oil the people use. Estimators claim that as the market continues to grow, so will the products for pets use only, resulting in a 7% share of the total CBD market in the US by 2023.
As people continue to see the benefits of hemp products, and as the cannabis industry satisfies a vast number of consumers, the sales are likely to increase month to month. Therefore, purchasing shares in one of the cannabis companies will ensure the investor great ROI.
#3 Increasing acceptance from the medical community
Known for its many advantages for human’s (and pet’s) health, CBD is starting to be more and more acceptable in medicine. Although the FDA hasn’t classified it as a medication, the healthcare industry is discovering that CBD can make significant improvements in overall healthcare. It not only helps treat many ailments and symptoms, but it also helps people who are recovering from drug and alcohol addiction.
Knowing that the cannabis industry has strong potential to be one of the greatest and that the predictions are highly optimistic, investing in cannabis companies will be a considerable decision.
When looking at the CBD growth until today, it’s obvious that the number of investors will soon increase, and investing will be far more expensive. Investing in CBD companies while the shares are still low-priced will secure the investors extremely high ROI in the future.
The right CBD company to invest in
Today is the perfect time to invest in CBD stocks if you want to make a significant return on investment. Before investing, as you know, researching the company you consider to invest in is a top priority, after the market and consumer behavior research.
The best selection will be a publicly-traded company that files with the US Securities and Exchange Commission (SEC) and has a good reputation and business background in the industry. If you choose the distribution company, ensure that the products it sells are third-party tested, high quality, and safe.
CannazALL™ can be your first choice for many reasons.
Why invest in CannazALL™?
CannazALL™ was one of the first companies in the industry that offered domestically grown and formulated CBD products. They have been on the market since 2014, even before the beginning of the CBD industry boom. They serve their customers the purest and most potent CBD products with the CBD extracted from Colorado-grown 100% organic and NON-GMO hemp.
Recognized as one of the Top 5 CBD companies by Forbes online in 2017, CannazALL™ is poised to be a leader in the industry.
They have achieved a lot over the past several years regarding business goals and outlook for the future. The Company is onboarding the talent and expertise to successfully grow at a better rate than ever before. They have an incredible history and brand recognition, and the future looks very bright as they continually build into the following years.
CannazALL™ is a publicly-traded company, trading under the symbol UBQU (Ubiquitech Software Corporation) on the Over The Counter Market (OTC:UBQU).
The Company offers a variety of products – CBD tinctures (in different mg of CBD), CBD SoftGels, CBD Gummies, and CBD Topicals, but they won’t stop there. Other exciting and trending products will be added in the future as they continue to perfect their CBD products and the CannazALL CBD line grows, expanding the sales in all available markets.
Take a look at the CannazALL™ company overview on OTC and find more information about the potential of this company!