Canada Leads the Way as North America Embraces a Diverse Cannabis and Hemp Industry - Seite 2

The Canadian Cannabis Market

It's easy to see the appeal of the Canadian hemp and cannabis markets for the companies moving into those markets, such as Marijuana Company of America (OTCPK: MCOA). Estimates by Statistics Canada indicate that Canadians spent around $5.5 billion on cannabinoids in 2017. As many commentators have pointed out, this places cannabinoid-based product potential in the market on par with alcohol for value to Canadian businesses, and close to the total spent on wine each year.

With around 450,000 people using hemp and cannabis products each day in Canada, this promises to be a stable market with a steady stream of income. It's one on which businesses can reliably build. And it's not just about the sale of smokable cannabis. There's potential for hemp and cannabis-based food and drink, as well as all the paraphernalia used in consumption and the supporting functions needed by the industry and retailers.

Hemp is used in a growing list of products, including dietary supplements and skin products, and even clothing and accessories. Overall, hemp is known to have more than 25,000 possible applications. And Marijuana Business Daily reported that the U.S. market for hemp-derived CBD hit $291 million last year and is projected to explode to $1.65 billion by 2021.

Cross-Border Work

The existence of a government regulatory framework for the medical cannabis industry has made it easier for companies to prepare for full legalization in Canada. Companies, such as MCOA with its joint venture partner Global Hemp Group Inc., are already cultivating industrial hemp and have production in place that can be increased to cater to a growing market.

Though MCOA is an American company, it has gained a solid foothold in Canadian hemp cultivation through a partnership with Global Hemp Group, a Canadian public company. The companies have established two agricultural projects together - one of them in New Brunswick and the other south of the border in Oregon. Both sites are being used to develop better techniques for growing industrial hemp.

At the New Brunswick site, the work is being supported by government research investment to help advance the local hemp industry. Aided by drone technology, the companies are gathering data on the impact of pests on hemp production, ways of correcting soil acidity for better growth, and the impact of nitrogen fertilizers. The resulting crops will provide materials for MCOA's branded hempSMART™ products as well as a rich harvest of data.