Legalised cannabis, once an idea dismissed by people the world over down to a stereotype portraying the plant in a negative light, is increasingly rebranding itself upon a foundation of science in order to present new opportunity on a global scale over the next decade. You may be wondering; how big could this market get? To give you an idea, it is projected that by 2024, the amount spent that year on legal cannabis alone would reach US$46 billion. While the numbers speak for themselves, it is also important to get to grips with how it can be possible for a market that was shrouded in bad publicity, and to some extent still is, has this kind of explosive potential, and this year, 2021, could provide the key to understanding this. Legislation in countries with geopolitical advantages, such as Mexico, has the potential to introduce the largest legal cannabis market to the global stage this year, and with the benefits of medicinal cannabis already experienced the world over, you may wish to look a little closer at the opportunities arising over the remaining quarters of 2021.
Hemp clothing
For years, fashion has seemed an untouchable industry, with exclusivity and prestige inhibiting many new brands with their own production methods from making a name for themselves. However, with the threat of climate change and a subsequent need to act together in order to prevent irreversible damage, the market has had more gaps for opportunity than ever, with hemp, deriving from the low-THC content cannabis plant species, leading the way in terms of efficacy and viability. Let us dive into the reasons why:
1. Hemp grows fast. The cultivation of cannabis plants can be undertaken far more frequently than other traditional crops from which clothing materials would be derived.
2. It is environmentally friendly. Arguably the most important point of them all, requiring the use of no chemical assistance (pesticides/herbicides/fertilisers), hemp is grown naturally at no cost to local water supplies. Speaking of water, it is also eco-friendly due to the relative lack of it required to grow the crops compared to cotton.
3. It is economical. Another important characteristic of growing hemp is the yield. The best way to represent this is, similarly to the market projection, to let the numbers do the talking. Per acre, hemp will produce roughly 680kg, while cotton would produce 227kg, almost two thirds greater in the same land area!
The material used to make the clothing is spun from the fibres of the plant and is able to be done mechanically without the use of chemicals in this stage either, continuing the environmentally friendly qualities of the use of hemp in fashion, and making it an industry to certainly look into this year.
Food and drink products
It may seem an unusual one, as until now, cannabis infused confectionary has been somewhat on the side lines in comparison with other, more well-known applications in medicine and the construction industry. However, it must be said that in 2021, there is an opportunity to jump onboard new projects facilitated by expanding legislation in various parts of the world.
The first example we will look at is hemp-based protein, stemming from consumption of hemp seeds (actually classified as nuts). These seeds contain as much protein as soybeans, demonstrating a healthy, plant-based source, when typically, plants are not seen as protein powerhouses. We have already established the eco-friendly benefits of growing cannabis species from which hemp is derived, and with global warming leading to a state of precariousness in the balance of ecosystems worldwide, people are turning away from meat in their diets, leading to a rise in popularity of vegetarian and vegan lifestyles, pushing cannabis food sources into the limelight, and also to the forefront of your investment watchlist.
The next example is hemp soda, a drink infused with hemp extracts, said extracts contain non-psychoactive cannabinoids. This is important as the intoxicating effect commonly associated with cannabis is not the case with this product and is what makes it such an exciting opportunity for investment. Not only this, but the benefits of drinking it include feeling relaxed and calmer, something not commonly associated with current sodas with high sugar content. As well as this, it is an alternative to alcohol, meaning those who do not drink have a more inclusive option, so the gap in the market is evident, and potentially lucrative in the wake of the COVID-19 pandemic, as disposable income shortages mean more economically viable options such as hemp-infused soda become more appealing to larger markets.
Hempcrete
The use of industrial cannabis in the form of hemp-based building materials is relatively well-known, yet there is room for innovation to continue developing the uses over time, and with globalisation increasing rates of urban sprawl, the demand for cost-effective and sustainable materials is more of an issue than ever. Let us start with some of the principal benefits of using hempcrete:
1. Lighter than concrete
2. Fire-resistant
3. Soundproof and bullet-proof due to the durability
4. Biodegradable and recyclable
5. Carbon-negative (absorbs more than is released during production)
In 2021, there is a new two-hectare factory set to open in Belgium for the construction of hempcrete building materials, demonstrating the scalability of the industry, making the investment in it all the more intriguing for the year ahead. Not only this, referring back to the previous point about an eco-friendly and economical solution to housing, in the United States, the use of hempcrete and other hemp-based building materials is projected to decrease house prices in northwest Colorado by at least 60%, such houses costing a maximum of US$425,000 where standard houses are around US$1.2 million according to stockhouse.com. It is clear that in terms of investments, you would find profitability in the industrial cannabis building materials market.
So, if you are interested in getting more information regarding cannabis investments in 2021, or you are eager to get involved right away, do not hesitate to contact us. At Creimerman, our passion is to make your cross-border ventures a success, and our team would be glad to assist you as you enter the exciting world of legalised cannabis.