The acceptance of medical cannabis, hemp and related products such as CBD oil is ever growing. It’s legalization among various parts of the United States and the rest of the world is propelling the market to greater heights. Now, its popularity could grow even further as Canada is looking to take new steps for the industry.
According to a study by Canopy Growth, Canada, Israel, the Czech Republic, Uruguay, and the Netherlands have all “established federally legal cannabis access regimes” in 2014. Since then, the acceptance of the product has grown in the United States, but most of these areas only open up opportunities for the use of medical cannabis.
Canada was one of the leaders in the legalization of medical cannabis before, and now it could be at the forefront of recreational cannabis as well, says Market Realist. The Canadian government is already pushing for it with April 2017’s bill C-45, also commonly known as the Cannabis Act.
Though the law is geared toward recreational cannabis, it still has its restrictions. For starters, only adults over the age of 18 are allowed to purchase the product. It should also go without saying that Canada will regulate the sales by releasing licenses and permits to select dispensaries. Canada will become the second country to lift the ban on recreational cannabis next to Uruguay.
No one knows exactly when the bill will be approved, but according to The Motley Fool, the Cannabis Act could be passed as early as June 2018. There are many reasons why it could be signed into law by mid-June, and one of which is that those opposed to it are now the minority. Knowing the benefits of cannabis, more are open to its expanded use and distribution in the country.
Another reason is the amazing track record of medical cannabis and CBD products. CBD sales, for instance, have topped $170 million in 2016 alone. Its momentum is far from slowing down and the Brightfield Group suggests that the sector could have a global revenue of $1 billion by 2020. Canada could be looking to get an even bigger slice of the market through the bill.
If the Cannabis Act becomes a law, many are going to benefit from it substantially. Its given that Canadians will benefit from the range of products they can legally purchase, but behind the products are industry leaders looking to break revenue records with top-quality cannabis products.
CBD leaders could get a boost from recreational marijuana
There are already some companies who are displaying tremendous market performance even if they are only limited to the production of medical cannabis and CBD products. PotNetwork Holding, Inc. (OTCMKTS:POTN) and its subsidiary, Diamond CBD Inc., are some of those who have been revolutionizing the industry.
In a recent press release, PotNetwork announced sales of $14.5 million, with gross profits of over $5 million in 2017. These sales were made through its subsidiary that produces top-of-the-line CBD products like oils, crystal dabs, and edibles. The company isolates CBD from the rest of the cannabis plant through a process called supercritical CO2 extraction, which makes it completely free from THC.
Canada could be a great market for PotNetwork and Diamond CBD. According to Statista, the medical cannabis market in Canada is expected to be at CA$1.1 million by 2020. If PotNetwork does decide to tap into the Canadian market, its line of premium products will surely have a huge following.
With the passing of the Cannabis Act just around the corner, there’s no telling how it could potentially boost the market of CBD even further. One thing is for sure though, if recreational marijuana is legalized in other major markets, then companies like PotNetwork will have an entirely new venture ahead of them.