According to data compiled by Ameri Research, the global cannabis market was valued at $14.3 Billion in 2016 and is anticipated to reach $63.5 Billion in 2024. North America accounts for more than 49% of the total market shares. Currently, the U.S. is the largest market for legal cannabis, even though cannabis is still illegal under federal law. However, many states in the U.S. allow cannabis for either medical use or recreational use. 31 U.S. states have legalized cannabis for medical use, while the recreational use of cannabis is legal in 9 states and Washington D.C. The cannabis market in Canada is expected to grow rapidly as it became the second country to legalize recreational cannabis on October 17th. AmeriCann, Inc. (OTC: ACAN), Cronos Group Inc (NASDAQ: CRON), Green Thumb Industries (OTC: GTBIF), TerrAscend Corp. (OTC: TRSSF), GrowGeneration Corp. (OTC: GRWG)
The cannabis industry in other countries is also expected to emerge. According to a report from Prohibition Partners, the legal cannabis sales in Latin America are projected to reach $12.7 Billion by 2028. The report states: “With the forthcoming legalization of Canada’s recreational cannabis market, all eyes have been on North America, but actually it’s the Latin American region that has quietly been carving out industry firsts. Uruguay was the first country in the world to fully legalize cannabis and Jamaica was the first to legalize cannabis on religious grounds. Colombia has become one of the world’s most attractive cannabis markets as international cannabis companies take advantage of favorable export laws. We believe that the expansion of a Latin American market will significantly impact the global cannabis industry, undercutting producers and pricing worldwide.”
AmeriCann, Inc. (OTCQB: ACAN) earlier last week announced breaking news that it, “has released designs for Building 2 which includes 345,000 square feet of cannabis manufacturing and cultivation infrastructure at its 52-acre Massachusetts Medical Cannabis Center (MMCC) in Freetown, MA.
The configuration of Building 2 includes over 100,000 square feet of dedicated cannabis extraction, processing and product manufacturing space and approx. 245,000 sq. ft. of cultivation infrastructure. The dedicated cultivation facilities are designed to utilize AmeriCann’s proprietary greenhouse system called Cannopy. The design of Building 2 of the MMCC, which is 345,000 square feet, will include three distinct units:
- Unit A: 184,720 square foot cannabis cultivation facility
- Unit B: 40,178 square foot extraction and product manufacturing facility; and
- Unit C: 118,580 square foot cannabis cultivation facility cannabis
AmeriCann will own and operate Unit B which is designed to provide extraction and product manufacturing support to the entire MMCC project, as well as to other licensed cannabis farmers throughout Massachusetts. In addition to large-scale extraction of cannabis plant material, AmeriCann plans to produce branded consumer packaged goods including cannabis beverages, vaporizer products, edible products, non-edible products and concentrates at the state-of-the-art facility. The Company has already commenced construction on the first phase of the 1 million square foot multi-phase MMCC project with a 30,000 square foot cultivation facility.
AmeriCann plans to replicate the brands, technology, and innovations developed at its MMCC project to new markets as a multi-state licensed operator.
Infused products are becoming an increasingly larger segment of total cannabis sales in regulated markets. According to the Wall Street Journal, ‘Interest in cannabis as an ingredient in food and drinks in on an upswing; beer brewing giant Constellation Brands, Inc. (NYSE: STZ) recently took a $4 billion stake in Canadian marijuana grower Canopy Growth Corp., (NYSE: CPG) which makes cannabis-infused drinks and other products.’
Industry experts believe that the pending Massachusetts adult-use market, in conjunction with its existing medical program will exceed $1 billion by 2020. As the first approved adult-use cannabis market on the Eastern US, Massachusetts has the potential to become the epicenter for cannabis innovation and research.
