A number of new shifts have been altering the landscape of CBD markets in America and across the globe, which will have impacts for years to come.
Aurora CBD, a prominent CBD company that has struggled while based in Canada, recently announced it was purchasing a smaller American company, and a new projection report shows the potential for massive growth in the cannabis industry.
CNBC reports that Aurora purchased Reliva on May 20, which ushered in a 13% spike in Aurora’s stock price after a year on the ropes.
The company’s price was down to just 10% of what it had been a year ago, so the Reliva acquisition was a much needed shot in the arm for the newcomer to the American CBD market, CNBC said.
“It’s immediate access into the world’s largest cannabinoid market,” Aurora’s interim CEO Michael Singer told CNBC. “I think the Reliva acquisition is a responsible strategic entry into the U.S. market; and for Aurora, delivers a key aspect of our reset plan.” [2]
That’s not the only recent market shift in CBD.
According to a new study by Prescient & Strategic Intelligence, the CBD market could grow in valuation as much as 25% in the next five years.
This is largely because of the legalizations worldwide that followed America’s legalization in 2018. Norway, Thailand, Spain, Mexico and others have all legalized CBD or related products, according to the report.
“Though regulations vary, the cultivation of cannabis and downstream production is rising across nations, which is expected to create interest among prospective customers,” P&S said in their report. “This is helping governments create additional jobs and gain revenue from the sale and licensing of cannabidiol-containing products.” [4]
The projections cover the period of the next five years, from 2020 to 2025 in the global CBD market and analyzed the prospects of a number of leading CBD companies, including Aphria Inc., CV Sciences Inc., Endoca BV, Isodiol International Inc., Aurora Cannabis Inc., Canopy Growth Corporation, the report said.
The report claims that the global market for CBD was valued at $1.7 billion in 2019 and will likely grow 24.3% in the next five years.
The report also emphasized the importance of mergers and acquisitions like those of Aurora and Reliva to the growth of the industry.
Stay tuned to the Nothing But Hemp blog for more CBD industry updates!
Sources
[2] https://www.cnbc.com/2020/05/20/canadas-aurora-cannabis-makes-a-cbd-deal-to-enter-us-market.html
[3] https://www.bnnbloomberg.ca/aurora-1.1439063
[4] https://www.psmarketresearch.com/market-analysis/cbd-oil-market
