We cultivated and made use of cannabis for 12,000 years. Then we banned it. But now it’s back…and the upside is only just beginning to kick in. For so long part of our heritage, cannabis is now part of the ‘smart farming’ revolution. From farm to pharma (and beyond), this remarkable plant is primed to hit new highs.
After decades in the legal wilderness, cannabis has re-entered the market. This robust, highly versatile plant is being cultivated for purposes including fibre, plastic alternatives, food and oil, building materials and, increasingly, for medical and recreational use.
As the market for cannabis products transition from illegal to legal across multiple jurisdictions and remaining social stigmas and medical and political resistance dissolve, the outlook for precision dose CBD & THC varieties continues to show strong upside.
According to Fresh Leaf Analytics, (which monitors trends in the Australian medicinal market), industry revenues saw a 300% growth in 2020, topping out near $95m.
Australia’s cannabis industry today is worth around $258m but is expected to grow further, as more raw and end product enter the market. It is predicted to grow 40% per annum for the next five years, indicating that the sector is still in its primary expansion phase, with big YOY percentage growth expected across the decade.
As floor prices drop, the disparity between value added legal and traditional illegal supply will close. In addition, as patient dose numbers rise and the profile of newly established medical cannabis clinics/retail grows, the industry is expected to benefit from further increases in demand.
In parallel, the supply side of the industry is likely to consolidate in the medium term, meaning that the number of new products entering the market YOY will decrease. The emerging opportunity here is for consumer brands and cultivators to cement their long term positions (brands) as local, regional and global markets expand.
As the market matures, further moves are anticipated around:
On a global scale, the upside for dose-assured medicinal cannabis products remains strong. As smart-farming practises drive yields up and emissions down, (and sister markets for other hemp products gain further traction), the outlook remains positive for a flourishing and diverse industry moving forward across the 2020s.
On the sustainable CO2 sourcing front, we plan to extract and liquify CO2 from nearby operators (factories, facilities) for reuse in our grow rooms.