Potential Markets for Cannabiz Expansion: Where is Cannabis Catching on?
Cannabis edibles and extracts have emerged as two of the most in-demand product segment markets. The combined concentrates markets in Colorado, Oregon, and Washington inflated by 83.9% during 2016, when sales pulled in $498.4 million! These are three U.S. states in which Nutritional High currently has active projects underway, out of a total five. The other states that Nutritional High has operations in are California and Nevada. Outside of U.S. borders, Nutritional High also has some potential opportunities in both Canada and International markets.
As a company, Nutritional High is committed to developing, manufacturing, and distributing controlled-dose products through the infused cannabis segment of the industry. Included in this product range are an assortment of innovative oil extracts and edibles designed for both medical and adult recreational use. Compliant with current cannabis industry regulations and standards, Nutritional High’s operations are conducted exclusively through licensed facilities in jurisdictions where cannabis-related activity is permitted and regulated by state law.
Since garnering a foothold in Colorado, Nutritional High’s portfolio has continue to expand and grow with various cannabis partnerships far beyond “The Centennial State”.
Businesses Must Adapt with the Ever-Evolving Cannabis Industry
Recent announcements for Nutritional High have included its entry into a formal agreement to purchase a 51% interest in Bright Green Lights LLC (JMEDS edibles) and 75% of Nevada-based Green Therapeutics LLC (with the option of buying the remaining 25% interest). Nutritional High also operates the only cannabis dispensary within a 60-mile radius in Illinois. In addition to this, one of the company’s major highlights of 2018 was the acquisition of the assets of Calyx Brands, a California based distribution company.
With how quickly the industry is moving, companies could be missing out on some fantastic opportunities if they aren’t working hard to broaden their product line and strategic partnerships. Adapting with the ever-changing cannabis industry is integral for a business to stay afloat among their competitors. According to Grandview Research, the legal cannabis market will be worth $146.4 billion by 2025, inflating with a CAGR of 34.6%.
However, Nutritional High’s business strategy doesn’t just stop at the aforementioned acquisitions. As a company, the management team is constantly on the lookout for states and locations that have potential to be lucrative in terms of a cannabis investment. Potential markets are emerging as opportune for cannabis companies across the U.S., especially with the recent midterm election results.
Some of the current industry’s most recent popular avenues for expansion:
Florida – Legal cannabis market share will creep up from the 0.2% recorded in 2017 to 10.4% in 2025. Although it is currently outpaced by the cannabis sales in California and Colorado, Florida is expected to rank as the third-biggest legal cannabis market by the year 2022. In total, Florida is predicted to earn $1.74 billion from medical cannabis sales alone. The state is home to some 21 million people and with a broad spectrum of medical cannabis products available under physician approval such as oils, edibles and vapes. There is no doubt that Florida is ripe with opportunity for the cannabiz.
Michigan – If Michigan’s medical cannabis industry continues to thrive, it could be earning approximately $883.9 million by the year 2025. “Cannapreneurs” are becoming increasingly interested in Michigan’s cannabis market, what with the U.S. state voting to legalize the plant for recreational purposes this past November. Furthermore, in July of 2018, Michigan’s initial medical cannabis licenses were awarded. The awarding of licenses ultimately kickstarted what is predicted to be a multi-million dollar industry.
Maine – By 2025, Maine could be raking in as much as $432 million in cannabis sales revenue. Maine deals have been quiet in the industry, it’s definitely not in the limelight like Colorado and California have been. At the start of February, Maine ensured that employers could not turn away employees/punish them for using cannabis both on and off-duty. Employers in Maine can no longer test their job applicants for cannabis consumption. It is the first U.S. state to enact such laws in terms of labor. Dispensary rules are still in the works. However, there’s currently nowhere to obtain cannabis in Maine (unless you’re a qualified medical patient).
Arizona – Arizona’s cannabis industry is trending upward, and could pull in $876 million dollars by 2025. Medical cannabis sales have increased from 5,012 pounds in August 2016 to 10,826 pounds in August of 2018, based on data released by the Arizona Department of Health Services. The number of enrolled patients over that two-year period has also climbed from 105,076 to 178,257. All of Arizona’s available cannabis business licenses have been issued and despite the unsuccessful attempt to get an adult-use initiative on the ballot this year, cannabis industry experts predict the issue will be voted on in 2020.
New Mexico – For the fourth quarter of 2018, New Mexico cannabis sales accrued to $23.8 million. After November 7th’s election, the U.S. state has moved closer to cannabis reform via the state legislator. Pro-cannabis Michelle Lujan Grisham is the Governor-elect and with her help, drug policy reform should progress in New Mexico. Not only has Grisham actively shown her support for the state’s medical cannabis program but also, she assisted in the program’s inauguration during her time served as Secretary of Health. What’s more, she has batted for congressional legislation to enable veterans access to medical cannabis.
Nutritional High Presents Investors with Strategic Partnerships
A lot of things have been happening in the cannabis industry, with scientific research and evidence based claims being the most significant growth driver. Since there are so many medical conditions and ailments that cannabis can be potentially used to treat, including chronic pain, inflammation, epileptic seizures and chemotherapy-related nausea, it’s no wonder why markets are evolving overseas, too. Germany, Italy, Switzerland and the United Kingdom have all experienced some kind of cannabis-related activity this year, indicating an increasing acceptance of cannabis.
What’s more, Nutritional High recently entered into a joint venture with a licensed Canadian extraction company – a move that is helping to create international exportation opportunities for Nutritional High. Strategic partnerships with various cannabis-related companies are likely to ensue, but time will tell which additional states the company will choose to expand its operations into.