Since being an outlawed plant that experienced prohibition for nearly a century, the market for legal cannabis has certainly grown in heaps and bounds. In fact, as per data provided by Technavio, the legal cannabis market is estimated to grow at a steady pace of about 42% CAGR by the year 2021. Additionally, according to research made by ArcView Market Research in partnership with BDS analytics, the entire legal industry for marijuana is projected to reach $57bn by 2027, just less than a decade from now.
Adding to this growth is the number of online retailers who are expected to provide significant contributions to the market by way of shifting the focus from merely P2P transactions to both online and offline, what with modern customers preferring to do their shopping online. In fact, as a result of this shift due to changing customer needs, more and more companies are utilizing modern technology as a means for easier and more accessible distribution of their products. The rise of modern technology changed the entire business and financial landscape, and the legal marijuana industry is no exception.
Of course, the marijuana industry is still largely hindered by the 1961 Single Convention on Drugs and its maker, the United Nations (UN). In fact, the same report published by ArcView and BDS reveals that unless US federal laws completely legalize marijuana, nothing can be done about the UN’s attitude about the matter.
Still, the reasons mentioned above are merely a small hindrance to a steadily growing market primarily jump-started by a single compound found in the plant: cannabidiol (CBD). Subject to a growing body of research in the recent years, CBD single-handedly brought the industry to where it is today, creating an expanding market sector that didn’t even exist five years ago.
CBD and its growing industry leaders
One of the many compounds that can be commonly found in the marijuana plant, CBD is widely known for its medicinal and therapeutic benefits without any known psychoactive effects (which the compound THC is responsible for).
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As a result, more companies have entered the industry, studying its various verticals and focusing on CBD itself. One example is PotNetwork Holdings, Inc. (OTCMKTS:POTN), a publicly traded company that specializes in the booming market for legal marijuana and hemp products.
Based in Colorado, the company has established itself as a growing market leader in the development of hemp-extract products, with a primary focus on CBD. These products are then distributed through its wholly owned subsidiary, Diamond CBD, where more than 15 of its recognizable brands reach more than 10,000 retail stores throughout the entire country.
Likewise, Diamond CBD is also extremely popular with customers not just locally but internationally. As one of the biggest CBD manufacturers in the US at present, Diamond CBD has shown continuous success over the past year, practically doubling its revenues month after month. Furthermore, the brand also had a great international head start, being a mainstay in market shows, where it always earns both sales and exposure from potential retailers coming from different parts of the world.
2018 has been a really crucial year for the plant as, at present, there are now more states where medical marijuana is legal, and a number of states have also already legalized its recreational use. Furthermore, Canada has already legalized it on a national level as well, being one of the first nations to do so.
Indeed, the growing awareness and acceptance for CBD oil and its numerous health benefits will only continue to drive the market forward, taking everyone along with it. In fact, the wide array of benefits that can be found in CBD served as a leverage for it to penetrate untapped markets. Nowadays, one can easily purchase CBD-infused candies, drinks, supplements, and even pet treats. More massage parlors are adding CBD oil to their repertoire of services while athletes resort to it as a primary source of pain relief.
These put companies like POTN at the perfect position for expansion, as its premium CBD oil is now being used not just by consumers but by other businesses as well.
While there is still a possibility of the situation going awry, it’s hard not to recognize the success of companies like POTN. And awareness about the true beneficial nature of CBD increases, it’s hard to argue where pioneer companies like POTN can reach with the market moving forward.