Infographic: How Consumers Are Shaping Cannabis Consumption
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How Consumers Are Shaping Cannabis Consumption

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Cannabis Concentrates

How Consumers Are Shaping Cannabis Consumption

The cannabis industry continues to reach new heights, and according to market analysts, global legal spending on cannabis could reach $32 billion by 2022 — a majority of which is thanks to U.S. and Canadian consumers.

What’s driving the evolution of the market?

Cannabis is in the midst of a shakeup, and today’s infographic from Ionic Brands highlights how consumers are significantly shaping the landscape of cannabis.

Cannabis Concentrates: A New Frontier

For years, joints and blunts dominated the industry—but sales of traditional flower are swiftly losing ground to new products. Here’s how cannabis consumer spending looks across North America in a few short years:

Product typeFlowerEdiblesConcentratesOther
2017$4.2B$1B$1.9B$1.3B
2022E$10.5B$4.1B$10.5B$4.1B
% Market Share↓ 14pp
From 50% to 36%
↑ 2pp
From 12% to 14%
↑ 13pp
From 23% to 36%
↓ 1pp
From 15% to 14%
CAGR20%33%41%26%

Cannabis consumers are clearly moving away from simply smoking the product. Concentrates are the fastest growing industry segment, which is not surprising since they’re needed to make all sorts of products, from edibles to topicals and tinctures. Cannabis concentrates are also discreet, convenient, and more potent than other cannabis products, all of which contribute to their consumer appeal.

In fact, these changing preferences are disrupting other mammoth industries. Take JUUL Labs for example: the inconspicuous, smokeless device is chipping away at the tobacco industry, and now accounts for almost 73% of the e-cigarette market. JUUL’s growth is proof that consumers are driving the market, and this trend is also reflected in cannabis.

Among all cannabis concentrate types, vaporizers (vapes) overwhelmingly come out on top in established markets, accounting for 43% of sales in Colorado, 70% in Oregon, and 79% in California.

Concentrate Sales (2018, Jan-Jun)VapeWaxShatterLive ResinOilsOthers
Colorado$97M$17M$16M$29M$12M$14M
Oregon$60M-$10M$4M$5M$8M
California$282M14M$14M$21M-$42M

Branding is Everything in Cannabis

The cannabis concentrates space is becoming increasingly sophisticated. With more money to be made from less product, concentrates offer higher margins as well. But in a fragmented market, brand recognition is arguably the biggest factor guiding consumer demand.

Returning to JUUL’s example, the company’s branding played a big hand in its accelerated trajectory—and in grabbing the attention of major players like Altria, the corporate parent of Marlboro. Altria made a landmark investment into 35% of JUUL in December 2018, bringing the latter’s value up to $38 billion.

In the nascent cannabis industry, consumers are still wondering who they can trust. A recent survey revealed that 72% of cannabis consumers rated branding as somewhat or very important in assessing a product’s quality and safety. Branded cannabis products are on the rise, but they’re not as established as Starbucks coffee or Apple iPhones quite yet.

When done right, cannabis concentrates brands are able to capture quite a significant chunk of the market:

  • California
    Top 10 brands: 48.4%
    All other: 51.6%
  • Colorado
    Top 10 brands: 46.6%
    All other: 53.4%
  • Oregon
    Top 10 brands: 59.7%
    All other: 40.3%

In a budding industry, such brand market domination is an impressive feat. However, a few barriers still stand in the way of these brands’ ability to scale on a national level: cannabis and related products aren’t legal in every U.S. state, while diverse state regulations also complicate the process.

Cannabis consumer brands that can spread out into multiple states, and develop consumer trust, will emerge as winners in this new, dynamic market.

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Misc

Mapped: The Most Common Illicit Drugs in the World

What are the most commonly used illicit drugs around the world?

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The Most Common Drugs in the World Share

Mapped: The Most Common Illicit Drugs in the World

Despite strict prohibitory laws around much of the world, many common illicit drugs still see widespread use.

Humans have a storied and complicated relationship with drugs. Defined as chemical substances that cause a change in our physiology or psychology, many drugs are taken medicinally or accepted culturally, like caffeine, nicotine, and alcohol.

But many drugs—including medicines and non-medicinal substances taken as drugs—are taken recreationally and can be abused. Each country and people have their own relationship to drugs, with some embracing the use of specific substances while others shun them outright.

What are the most common drugs that are considered generally illicit in different parts of the world? Today’s graphics use data from the UN’s World Drug Report 2021 to highlight the most prevalent drug used in each country.

What Types of Common Drugs Are Tracked?

The World Drug Report looks explicitly at the supply and demand of the international illegal drug market, not including commonly legal substances like caffeine and alcohol.

Drugs are grouped by class and type, with six main types of drugs found as the most prevalent drugs worldwide.

  • Cannabis*: Drugs derived from cannabis, including hemp. This category includes marijuana (dried flowers), hashish (resin), and other for various other parts of the plant or derived oils.
  • Cocaine: Drugs derived from the leaves of coca plants. Labeled as either cocaine salts for powder form or crack for cocaine processed with baking soda and water into rock form.
  • Opioids: Includes opiates which are derived directly from the opium poppy plant, including morphine, codeine, and heroin, as well as synthetic alkaloids.
  • Amphetamine-type Stimulants (ATS): Amphetamine and drugs derived from amphetamine, including meth (also known as speed), MDMA, and ecstasy.
  • Sedatives and Tranquilizers: Includes other drugs whose main purpose is to reduce energy, excitement, or anxiety, as well as drugs used primarily to initiate or help with sleep (also called hypnotics).
  • Solvents and Inhalants: Gases or chemicals that can cause intoxication but are not intended to be drugs, including fuels, glues, and other industrial substances.

The report also tracked the prevalence of hallucinogens—psychoactive drugs which strongly affect the mind and cause a “trip”—but no hallucinogens ranked as the most prevalent drug in any one country.

*Editor’s note: Recreational cannabis is legal in five countries, and some non-federal jurisdictions (i.e. states). However, in the context of this report, it was included because it is still widely illicit in most countries globally.

The Most Prevalent Drug in Each Country

According to the report, 275 million people used drugs worldwide in 2020. Between the ages of 15–64, around 5.5% of the global population used drugs at least once.

Many countries grouped different types of the same drug class together, and a few like Saudi Arabia and North Macedonia had multiple different drug types listed as the most prevalent.

But across the board, cannabis was the most commonly prevalent drug used in 107 listed countries and territories:

Country or territoryMost Prevalent Drug(s)
AfghanistanHeroin, opium
AlbaniaSedatives and tranquillizers (general)
AlgeriaCannabis (general)
ArgentinaCannabis (herb)
AustraliaCannabis (general)
AzerbaijanHeroin
BahamasCannabis (herb)
BahrainCannabis (general)
BangladeshAmphetamine
BelarusOpium
BelgiumCannabis (herb)
BoliviaCannabis (herb)
BruneiCannabis (herb)
BulgariaCannabis (herb)
Burkina FasoCannabis (general)
CanadaCannabis (herb)
Central African RepublicCannabis (herb)
ChileCannabis (herb)
ChinaMethamphetamine
Costa RicaCannabis (herb)
Côte d'IvoireCannabis (herb)
CroatiaHeroin
CyprusCannabis (general)
Czech RepublicBenzodiazepines
Dominican RepublicCocaine (powder)
EcuadorCannabis (herb)
El SalvadorCannabis (herb)
EstoniaCannabis (herb)
FinlandCannabis (herb)
FranceCannabis (hashish)
GeorgiaCannabis (herb)
GermanyCannabis (herb)
GibraltarCannabis (hashish)
GreeceSolvents and inhalants (general)
GuatemalaCannabis (herb)
HondurasCannabis (herb)
Hong KongHeroin, opium, opioids
HungaryCannabis (herb)
IcelandCannabis (general)
IndiaHeroin
IndonesiaCannabis (herb)
IranOpium
IrelandCannabis (herb)
IsraelCannabis (herb)
ItalyCannabis (general)
JapanMethamphetamine
JordanCannabis (hashish)
KenyaCannabis (herb)
LatviaCannabis (herb)
LebanonCannabis (hashish)
LiechtensteinCannabis (hashish)
LithuaniaSedatives and tranquillizers (general)
LuxembourgCannabis (general)
MacaoMethamphetamine
MadagascarCannabis (herb)
MalaysiaMethamphetamine
MaltaHeroin
MexicoCannabis (herb)
MoldovaCannabis (herb)
MongoliaMethamphetamine
MozambiqueCannabis (herb)
MyanmarHeroin
NetherlandsBenzodiazepines
New ZealandMethamphetamine, solvent and inhalants
NicaraguaCannabis (herb)
NigeriaCannabis (herb)
North MacedoniaMultiple types
NorwayCannabis (general)
OmanOpium
PakistanCannabis (hashish)
PanamaCannabis (herb)
PeruCannabis (herb)
PhilippinesCannabis (herb)
PolandCannabis (herb)
PortugalCannabis (general)
QatarCannabis (hashish)
RomaniaCannabis (general)
Saudi ArabiaMultiple types
SenegalCannabis (herb)
SerbiaBenzodiazepines
SingaporeMethamphetamine
SloveniaCannabis (general)
South AfricaCannabis (general)
South KoreaMethamphetamine
SpainCannabis (herb)
Sri LankaCannabis (herb)
SudanCannabis (herb)
SurinameCannabis (herb)
SwedenCannabis (general)
SwitzerlandCannabis (herb)
Syrian Arab RepublicCannabis (hashish)
TajikistanHeroin, opium
TanzaniaCannabis (herb)
ThailandMethamphetamine
TogoCannabis (herb)
Trinidad and TobagoCocaine (crack)
TunisiaCannabis (general)
TurkeyCannabis (herb)
TurkmenistanOpium
U.S.Cannabis (herb)
UKCannabis (herb)
UkraineOpioids
UruguayCannabis (herb)
UzbekistanCannabis (herb)
VenezuelaBenzodiazepines
VietnamHeroin
ZambiaCannabis (herb)

How prevalent is cannabis worldwide? 72 locations or more than two-thirds of those reporting listed cannabis as the most prevalent drug.

Unsurprisingly these include countries that have legalized recreational cannabis: Canada, Georgia, Mexico, South Africa, and Uruguay.

How Common Are Opioids and Other Drugs?

Though the global prevalence of cannabis is unsurprising, especially as it becomes legalized and accepted in more countries, other drugs also have strong footholds.

Opioids (14 locations) were the most prevalent drugs in the Middle-East, South and Central Asia, including in India and Iran. Notably, Afghanistan is the world’s largest producer of opium, supplying more than 90% of illicit heroin globally.

Amphetamine-type drugs (9 locations) were the third-most common drugs overall, mainly in East Asia. Methamphetamine was the reported most prevalent drug in China, South Korea, and Japan, while amphetamine was only the most common drug in Bangladesh.

However, it’s important to note that illicit drug usage is tough to track. Asian countries where cannabis is less frequently found (or reported) might understate its usage. At the same time, the opioid epidemic in the U.S. and Canada reflects high opioid usage in the West.

As some drugs become more widespread and others face a renewed “war,” the landscape is certain to shift over the next few years.

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Markets

9 Things Investors Should Know About the Cannabis Industry in 2021

This graphic provides an overview of 9 key developments in the cannabis industry that investors should be aware of going into 2021.

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9 Things Cannabis Investors Should Know in 2021

Unlike dozens of other industries across the globe, cannabis experienced significant growth as a result of the COVID-19 pandemic.

In fact, with consumption for both medical and recreational products on the rise, 2020 was a record-breaking year for the industry. After years of investor uncertainty, analysts are predicting a continued bull market in 2021, with several new and exciting developments on the horizon.

Here are nine things cannabis investors need to know.

1. Cannabis Stocks on the Rise

While asset prices took a dip during the initial stage of the COVID-19 outbreak in March, the cannabis sector recovered swiftly after reporting impressive numbers.

Even though cannabis investors have experienced some ups and downs in the last several years, 2021 looks more hopeful.

2. COVID-19 and Cannabis

Cannabis has become an attractive option for people spending more time at home, both as a means of entertainment, and to reduce stress and anxiety associated with the pandemic.

As a result, cannabis sales are soaring. In Canada, monthly sales reached an all-time high of $270 million (CAD) in October 2020, a dramatic increase from $180 million just six months earlier.

3. Cannabis Black Market No More?

For millions of U.S. citizens who live in states where the sale of cannabis is still restricted, the illicit market continues to be their only option.

But with loosening restrictions and legal cannabis becoming more widely available, legal sales are predicted to reach $50 billion by 2026 while illegal sales will plummet to less than $1 billion by the same year.

YearU.S. Legal Cannabis SalesU.S. Illegal Cannabis Sales
2016$6 billion$25 billion
2026$50 billion<$1 billion

4. Political Change Driving Market Growth

Almost 70% of Americans now support the full legalization of cannabis—the highest figure ever recorded.

States where cannabis is legal are now paving the way for cannabis sales, with California expected to pull in over $6 billion by 2021 alone. If federal legalization comes to fruition over the next several years, the already booming U.S. market could see further growth.

5. All Eyes on the European Cannabis Market

The European cannabis market has been on investors’ radar for several years, and with good reason—it is one of the largest cannabis markets in the world.

Driven primarily by medicinal products, the market will be valued at over $39 billion by 2024, with countries like Germany—Europe’s largest economy—leading the way.

In late 2020, the market experienced its biggest breakthrough yet, with the European Union ruling that products containing CBD (one of the most active ingredients in cannabis) are no longer listed as narcotics.

6. Making History in Mexico

Mexico is another market that is piquing the interest of investors and cannabis companies the world over. That’s because it could soon be the third country in the world to legalize recreational cannabis by court order.

With a total addressable market of $2 billion and the potential to support up to 75,000 jobs, these new regulations could change the dynamic of the global market for the better.

7. Most Popular Cannabis Products

Given the flurry of product innovation in the market, consumption of cannabis is quickly changing.

Relatively new products such as edibles and oils are gaining traction, while consumption of flower appears to be declining. This could be due in part to oral products being perceived as a healthier alternative to smoking.

8. CBD Products are Moving into the Mainstream

Although CBD was once considered a niche product that could only be found in dispensaries, growing awareness of the benefits and safety of these products are causing companies operating in the consumer packaged goods industry to take notice.

The cannabis compound is a new addition to a wide range of products such as skincare, makeup, and supplements that can now be purchased almost anywhere—from ecommerce sites to local grocery stores.

9. The New Cannabinoids on the Block

Beyond CBD, scientists have discovered over 100 rare, or minor cannabinoids such as CBG and CBN, that could have even more significant benefits than their major cannabinoid counterparts.

For example, preliminary research shows that CBG could inhibit cancer growth, help treat glaucoma, bladder dysfunction, and kill drug-resistant bacteria.

These discoveries are not only attracting huge attention from the cannabis industry, but from the pharmaceutical industry as well.

Milestones in the Making

With all of these exciting developments coming to the fore, it’s safe to say 2021 could be one of the cannabis industry’s most transformative years to date.

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