Agriculture & Cannabis
In the last two decades, the cannabis industry has grown significantly. Investors have increasingly shown interest and demonstrated participation in several aspects of the cannabis industry, with a key factor fueling the industry growth being the expanding demand for legal cannabis. As cannabis has steadily achieved legalized status in several U.S. states and also international markets, more companies are venturing into cannabis, its research and development, testing, and manufacturing. Cannabis is a herbaceous plant, and also an umbrella term meant to refer to either marijuana and/or hemp. Cannabis products derived from its leaves, stems, seeds, and other parts can be used for both medicinal and adult-use purposes.
To understand its most popular uses, it is important to first define cannabinoids. Cannabinoids are a large group of chemical compounds found in the cannabis plant. Of these, two of note are tetrahydrocannabinol (THC) and cannabidiol (CBD). THC is what creates the psychoactive effect– aka ‘high’– often associated with cannabis usage, while CBD does not. Instead, CBD is often utilized for health and relaxation purposes in that it offers medical benefits without the ‘high’. Some of the ways cannabinoids can be consumed include: smoking or vaping, ingesting it via drinking or eating, such as in brewed tea or edibles like brownies or candies, eating it raw, applying it as a topical treatment, or taking it as capsules or supplements. (Sources: Medical News Today, and Investopedia) The drug marijuana contains the intoxicating tetrahydrocannabinol (THC), and is known for its impairing or mind-altering effects, and causes intoxication. Hemp, on the other hand, contains significant levels of the safe, non-intoxicating, and non-addictive compound cannabidiol (CBD). CBD has become a popular additive in wellness products, having an array of benefits, from sleep support to pain relief to its calming and anti-inflammatory properties, and more. CBD is often touted for its wide range of health benefits with minimum side effects. CBD is also increasingly used as a key ingredient in the health and beauty space, with heightened consumer interest in natural products fueling demand for CBD-infused topical formulations, gummies, and capsules, among others. The two main segments generating revenue for companies in the cannabis industry are: Medical vs. Recreational/Adult-use Cannabis Retail vs. Wholesale Distribution of Cannabis Medical Cannabis: This refers to the use of cannabis as a physician-recommended treatment for certain health conditions and symptoms. Medical cannabis generally has a higher CBD concentration and a lower THC concentration. The current applications for the medical use of cannabis include: Chronic pain management Insomnia Anxiety Healing after traumatic injuries Regulating seizures