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- 🌿 $48B Global Cannabis Industry by 2027
🌿 $48B Global Cannabis Industry by 2027
Plus: Cann Group doesn't understand placebos, savoury cannabis edibles and photos of people surrounded by cannabis
Good morning. Welcome to The Greenfields. This is your twice weekly guide to what's happening in the cannabis industry.
What’ve we got for you today?
We aren't sure Cann Group understands placebo trials
Have a look at some projections of the size of the global cannabis industry
Introduce a new segment we are calling: "Photos of people surrounded by cannabis"
Savoury cannabis infused chips and onion rings
Cann Group doesn’t understand placebo trials
Cann Group will keep trying to get approval for their low-dose CBD treatment Satipharm for sleep disturbances even though their last trial failed.
That’s great news, but we think the new Cann Group CEO might want to check his understanding of placebo trials after we read this statement:
“It’s not as if participants failed to see any benefits, and that it flatlined, [it was] quite the opposite. But everyone did better in the study, including the placebo group.”
Um okay… if the people taking sugar tablets also improved that still doesn’t mean anything about your product… But do go on...
“So it doesn’t mean that Satipharm doesn’t work. It means we weren’t able to prove it using this particular protocol on those particular patients.”
Well… it means taking Satipharm for your sleep disturbances is the same as thinking you’re doing something but actually doing nothing.
Right now the evidence says it doesn’t work. That could change with more research.
The rest of the interview was behind a paywall, but we’d heard enough not to bother.
We want to see CBD medicines succeed as much as anyone, but we just can’t walk past this, ah, “inaccurate” statement about the trial results and not call it out.
Cannabis market predicted to grow to $48B by 2027?
A research company has released a report that predicts that the world wide cannabis market could grow to $48B by 2027. In 2019 the same research company estimated the market was worth $8.26B.
To get to $48B the market would need to grow by about 25% each year between 2019 and 2027.
How do they think this is going to happen?
Well they point to a number of factors:
The growth of the industry in the US and Canada and ongoing legalisation of medical and recreational use in individual states
Asia Pacific to be the fastest growing region
Europe starting on the path to legalisation of medicinal and recreational use
Increased awareness and proof of the medicinal benefits
It could certainly happen. There’s a lot of progress being made around the world to make medicinal and recreational cannabis use legal. Major markets such as Europe are making progress towards legalisation and the US industry has become quite advanced.
What’s the forecast for Australia? Well a few similar reports think the industry is worth around $50-$60M USD at the moment. They project it to grow by about 30% each year until around 2030.
Photos of people surrounded by cannabis
This is a new weekly segment that we are calling: “Photos of people surrounded by cannabis". It is exactly what it says it is.
This weeks photo is of instagram user siraynot who is surrounded by a very fine looking field of cannabis. Good for you _siraynot_.
Savory Edibles
Now that everyone and Mike Tyson has their own line of edible cannabis gummies, it’s probably time to differentiate your offerings. So Caroline Yeh has created a line of savoury cannabis edibles.
(Yes the Mike Tyson cannabis edibles are gummy ears called Mike Bytes because of course they are)
TSUMo snacks are cannabis infused savoury chips and onion rings. The business is backed by Snoop Doggs investment business Casa Verde and he markets and features as the inspiration behind some of their products.
The edibles market in the US was estimated to be about $1B in 2021, and is dominated by gummies. Savoury food infused with CBD has been around for a while, so we think that the reason for the domination of gummies is because of easier distribution. You can ship a box of gummies in the mail.
Most of the cannabis infused savoury recipes involve the use of cannabis oil during cooking, and likely wouldn’t ship well. So you would basically just be shipping cannabis infused oil for people to cook with, which doesn’t offer as much opportunity for product differentiation.
Bags of chips on the other hand are easily shippable and don’t require refrigeration, and offer an opportunity to stand out with different flavours, shapes and colours.
We think cannabis infused chips would play well in Australia. But let’s face it, the Australian market of cannabis edibles is most likely going to be dominated by cannabis infused beer.
That’s it for this week, we hope you’ve enjoyed another edition of The Greenfields. It’s free, so feel free to share it.
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