2019 is the year of a green gold rush. The legalization of recreational and medicinal marijuana is obtainable to over half the United States population. Inevitably, the general population is becoming more educated on the recently mainstreamed plant. Stigmas are changing- and legislators are listening.
Rapid growth is expected as the industry’s expected revenue potential spikes the interest of investors and companies from all over. Cannabis companies are optimistic about the market potential for 2019.
Despite a recent dip in the fourth quarter, Cannabis stock prices are expected to bounce back up.
According to an article on eutrapranuer.com, Steve Gromley, the CEO of International Cannabrands explains his predictions for cannabis stocks.
“I think the recent fourth quarter downturn in the cannabis markets is a temporary phenomenon the marijuana industry, and Canadian cannabis stocks is poised for a robust rebound in the first two quarters of 2019. I believe as 2019 progresses, we will see a shift in focus with savvy investors looking for companies that have strong fundamentals.”
With further legalization, cannabis research will allow for other cannabinoids such as CDB, CBG, BBN, and CNC will have an opportunity to hit the market. Additionally, we will see a massive growth spurt in CBD production and sales.
With the recent signing of the Farm Bill, there is greater opportunity for further research on all the 400 hemp cannabinoids. The healing properties of the various cannabinoid can be used to target specific diseases and conditions. Further research will allow scientists to unlock the full potential of the marijuana plant.
Additionally, large pharmaceutical companies are expressing interest in the plant.
Eutrapranuer.com reported a statement from the CEO of Jay Pharma, Sid Taubenfeld’s estimation of pharmaceuticals and hemp.
“In 2019, I predict an increasing number of major pharmaceutical companies will be evaluating cannabinoid-based drug development programs. A growing body of research suggests the use of cannabinoids and the manipulation of the endocannabinoid system could offer new therapeutic options for many serious diseases, including certain cancers. At Jay Pharma, we plan to evaluate CBD and other cannabinoids in combination with existing pharmacologic interventions in hard-to-treat conditions that may include glioblastoma multiforme and triple-negative breast cancer. The launch of clinical trials to evaluate the efficacy of these cannabinoid combination therapies may represent an important step towards improving clinical outcomes in a population of patients with few other effective therapeutic options.”
Competition with brands is expected to be fierce as big companies enter the cannabis space for the first time, especially as the legality and stigmas transform.
CBD infused products are expected to sweep the market. Doors will open for further research and development of the cannabinoid as consumers become more educated on hemp products and can experience the benefits firsthand. This will add pressure to the federal reclassification to legalize cannabis.
Although CBD is expected to boom, the industry may hit a few bumps along the way. For example, an expected global shortage of hemp may not be able to meet the consumer demand as hemp is not an easy crop to cultivate. First-time hemp farmers may struggle to harvest and processing the plant.
Furthermore, the market could be too oversaturated with cannabis licenses unless strategic federal regulation is implemented from the beginning.
