Medical Cannabis Industry
The cannabis market is rapidly expanding as more countries legalize or decriminalize cannabis - both for recreational and medical use. Accordingly, the demand for cannabis seeds is rapidly increasing.
More than 50 countries worldwide have legalized some form of medical cannabis, while six countries have legalized cannabis for recreational use by adults.
Cannabis cultivation for medical or recreational use has been legalized in 33 states within the United States.
It is permitted for medical and recreational use in Canada, Greece, North Macedonia, Uruguay, Luxembourg, Lesotho, South Africa, and Israel.
Numerous other countries have decriminalized the use of cannabis, while others are in the legalization process.
In the past few years, more and more European countries legalized medical use of cannabis, among those Germany, the UK, France, Spain and Italy.
Denmark is characterized by quality medicine produced in Denmark and is recognized as a leading agricultural producer.
Denmark is one of the only countries in Europe that are allowed to export cannabis.
Danish-based manufacturers are expected to have a competitive advantage in the new European markets.
The Cannabis Market
Real Canna Seeds is well positioned to be a preferred supplier in the global Cannabis market. Our company will automatically meet the requirements in various geographic markets, as Denmark sets high and strict standards.
For this reason, several international companies have invested in the Danish medical cannabis sector.
Among the advantages for the Danish Medical Cannabis sector are:
Easy access to the European Union market.
A supportive, predictable, and stable government.
Strong and competent level of education, including
pharma and agriculture.
The country’s technological advantage.
As the market matures, it will converge toward more traditional pharmaceutical standards. Winners will be the companies with experience in the pharma world.
From a product perspective, we expect to see improvements in galenical formulation and product consistency, stability, and efficiency.
The winning companies will be the first movers that can:
Secure stable, long-term, and high-quality supply via solid offtake agreements, ensuring that their own brand products are constantly on the shelves of pharmacies;
Have an established nationwide sales team to address the full depth of the market, so their products are prescribed and distributed in progressive cities.
Target all stakeholders: patients, doctors, pharmacies, and health insurers.
Offer a full range of quality products tailored to the various needs of patients; and educate prescribers.
The majority of countries in Europe are highly dependent on cannabis imports as they have no or partially limited production. Denmark, in contrast, has no limit on how much medical cannabis must be produced. Also, the new export legislation gives the Danish manufacturers access to large markets in the form of neighboring countries. Denmark is one of the only countries in Europe that is allowed to export cannabis.
Some estimates reach as high as US$150 billion by 2025: e.g., Grand View Research predicts the global legal cannabis products market reaching US$146 billion by 2025, and Barclays, in their European Consumer Staples Report (September 2018), suggests the global figure could be as high as US$272 billion by 2028.
Denmark has opened the market for medical cannabis.
Worldwide, cannabis acceptance is gaining ground.
Germany, Italy, and Israel are very active in the liberalization of the regulatory space and there is activity in the EU to produce Europe-wide liberalizing legislation. Luxembourg is expected to be the leader, with Spain close behind in the next couple of years.
Tax revenues and job creation in the cannabis space provide excellent opportunities for all countries.
While public equity markets are still in their “cannabis infancy,” companies that deliver results enjoy very high P/E ratios.
Significant growth in legal cannabis consumption opens the door to new markets.
More and more pharmaceutical companies are using cannabis in drugs, e.g., Sativex, for the treatment of MS. Epidiolex for epilepsy in children and some new medications for chemotherapy- induced nausea.