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Cannabis industry could be worth over $90 billion by 2026

Cannabis industry could be worth over $90 billion by 2026

cannabis industry market projects

When states began legalizing cannabis for recreational use following Colorado in 2012, the trend looked promising. Multiple states followed suit in the years to come, and as of 2022, 19 states and the District of Columbia have legalized cannabis for recreational use.

In addition to adult-use cannabis, the majority of the country now has some form of medical cannabis laws on the books. The rapid growth of the industry has turned initial predictions for the industry’s revenue on their heads.

In 2017, those with insights into the industry and a pulse on the growth of the legal cannabis market predicted that the industry could bring in as much as $25 billion in revenue by 2025. A recent analysis by MarketsandMarkets found that cannabis industry revenue surpassed $20 billion in 2020. It also predicts that legal cannabis markets could be worth over $90 billion by 2026.

In other words, the industry has triple the growth potential as originally thought. This is a positive sign for those wanting to see the industry grow. It also shows the increasing acceptance of cannabis as a recreational product, and the changing perceptions surrounding cannabis consumers.

Concentrates are the main product sector that is seeing the most growth since 2020, and has the most projected growth through 2026. This includes edibles, tinctures, vape pens, cannabis extracts and other concentrated products.

What may come as a surprise is the finding that medical cannabis dominated the majority of cannabis revenue since 2020. However it does appear that the conductors of the analysis included CBD as a medical cannabis product.

CBD has exploded in popularity as a legal “health supplement” after the 2018 Farm Bill legalized hemp, i.e. cannabis with a THC percentage below .3%. Opposed to medical cannabis which requires a patient’s license and purchasing from a licensed dispensary, CBD can be obtained from a smoke shop or gas station in some cases.

Not to take away from the success of medical cannabis states, Oklahoma was the highest grossing cannabis market in the country in 2021, despite only having a medical cannabis program.

Overall, future growth of cannabis markets will be mostly seen in North America as Canadian and US markets continue to grow. Other factors such as an increase in recognition of medical benefits of cannabis and growing consumer demand for cannabis in disease management and treatment due to high health care costs are expected to drive the growth in the North American region.

As for hemp markets, the industry is projected to hit roughly $25 billion by 2025. The hemp industry was worth over $4.5 billion in 2019, just one year after hemp was federally legalized.

Thailand cannabis legalized for cultivation and trade

Thailand cannabis legalized for cultivation and trade

Thailand cannabis legalization

The government of Thailand has officially legalized cannabis cultivation and trade, along with removing cannabis from from its banned narcotics list.

However recreational use is still banned. Advocates say that the legalization acts more or less as decriminalization, so penalties should be less harsh, and less common.

Thailand is the first country in South-East Asia to legalize cannabis, going so far as to even give away one million cannabis seeds to citizens to encourage more people to start growing the plant.

“It is an opportunity for people and the state to earn income from marijuana and hemp,” said Anutin Charnvirakul, deputy prime minister and health minister.

Charnvirakul even said that restaurants could serve dishes with cannabis included as long as the THC (Tetrahydrocannabinol) content is less than .2% so consumers don’t get high. Starting today, households will be permitted to grow up to six plants if they register with authorities, and companies will be permitted to farm cannabis commercially with licensing.

Additionally, medical clinics across Thailand can more freely prescribe cannabis as a treatment. The country was also first in the region to legalize medical cannabis in 2018.

However despite the language of the law and the excitement around it, the “legalization” of cannabis in Thailand is more or less just the legalization of hemp. While hemp and cannabis are identical in structure and appearance, hemp is bred to contain less than .3% THC.

Since personal consumption recreationally is still banned, and public consumption can result in a fine or arrest, the only cannabis anybody is allowed to sell for profit will be hemp. But the country is still using the language of the new law to release some 4,000 prisoners whom were arrested on cannabis charges, including the psychoactive kind.

It appears that the current goal of the country is to take advantage of their new position and capture the untapped CBD market in Asia. CBD (Cannabidiol) is considered to be a non-psychoactive compound in cannabis, otherwise known as a cannabinoid.

What is IPM? Integrated Pest Management Explained

What is IPM? Integrated Pest Management Explained

What is IPM integrated pest management

It’s easy to think that dealing with a pest problem on your plants is as simple as spraying some pesticides and letting it do the work. But it isn’t always that simple.

Different pesticide products can fight various forms of pests, mold and mildew, at all different stages of development. Some focus specifically on eggs, while others focus on dealing with matured pests.

The key to dealing with potential pest problems is preventing them from happening in the first place. That is where Integrated Pest Management, aka IPM, comes in.

What is IPM?

IPM is relatively self-explanatory. You are integrating preventative pest management practices directly into your grow regiment.

That doesn’t just mean using various pesticide products throughout your growth cycle to prevent various issues though. In fact, we would argue that just as important to your IPM regiment, if not more important, is your environmental control practices.

Certain environments not only welcome, but help to breed various pests that you’ll then have to apply additional products to in order to destroy. Keeping your environment under the right conditions is the first step to preventing an eco system welcoming to pests.

Integrated Pest Management Practices

Opposed to waiting for a problem to appear and dealing with it, IPM aims to prevent the problem from happening at all. This is done by using a range of pest control products throughout your plant’s growth cycle.

That means from the very beginning, regardless of if you even have a bug problem, you need to be giving your plants pest control products anyway. Think of it like wearing a seat belt.

You never plan on getting in a car accident, but you wear a seat belt as a safety precaution just in case. IPM is the seat belt for your plants.

Through providing your plants consistently with pest control products, if any pest, mold or mildew were to appear (which is already less likely thanks to IPM), you have a head start on fighting it.

While you will be giving your plants these pesticide products regularly, you don’t need to use the full dosage that you would use if the pest was already there. This means you can use less of the product throughout your growth cycle, so you’re less likely to damage your plants while still preventing potential problems.

So what products should you use?

Best IPM Products

At Cultivate we recommend three types of pesticide products for IPM: an oil-based product, a pyrethrin product, and an azadirachtin product. Using these three products in unison will help prevent just about any potential pest, mold or mildew issue that could arise.

But remember, it can all be for nothing if you don’t take control of your environment.

Lost Coast Plant Therapy is an oil based product that in its traditional usage will adhere to the target insect, egg case or larvae to destroy it. When used in a diluted fashion, the oil coating of Plant Therapy will prevent any bugs from landing on the plants and laying their eggs.

Pyrethrins are a class of organic compounds normally derived from Chrysanthemum flowers that have potent insecticidal activity by targeting the nervous systems of insects. Bonide Pyrethrin Garden Spray is effective against just about any potential pest.

Even in its traditional usage, Garden Spray can be used up until the day of harvest if necessary. That makes this product a great addition to your IPM regiment in a diluted dosage.

Azadirachtin is a chemical that is sourced from the Neem tree which is most prevalent in India, and one of the oldest known pest control products in history. AzaMax is an antifeedant and insect growth regulator that controls pests through starvation and growth disruption.

AzaMax is effective against all of the most common pests that might come for your plants. It is also organic and avoids using harsh chemical solvents, which makes it great as an IPM product.

Remember…ENVIRONMENT

While using the above products together is a great way to protect your grow from unwanted pests, mold or mildew, they can only do so much to combat a bad grow environment.

Hot, humid environments are breeding grounds for bacteria and make a great home for pests to lay eggs. Cold and dry environments can cause the same issues.

Your environmental needs will depend on what is being grown. You wouldn’t just throw some tomato seeds out into a dry dead field and expect them to grow without doing some research. Your indoor grow shouldn’t be any different!

Is the FDA cracking down on Delta 8 THC?

Is the FDA cracking down on Delta 8 THC?

Delta 8 THC gummies under scrutiny from FDA

The FDA recently issued warning letters to several companies for selling Delta 8 THC gummies and other Delta 8 THC products. Is a crackdown coming?

On May 4 of this year, the FDA issued five warning letters to Delta 8 THC retailers. It is not uncommon for the FDA to send warning letters to companies that could be making false medical claims about their products.

But this is the first time the FDA gas written warning letters specifically to Delta 8 THC companies.

The FDA has also released a consumer advisory warning on their official website regarding Delta 8 THC gummies and other Delta 8 THC products. In other words, D8 has been on the FDA’s radar for some time.

It is possible that more scrutiny could be coming down on the Delta 8 THC industry, which is mostly unregulated at the moment.

The FDA is approaching Delta 8 similarly to how they deal with CBD and other hemp products. The Farm Bill passed in 2018 legalized “industrial hemp” on the federal level. Under the ruling any cannabis plant that has lower than .3% THC on a dry weight basis is legal to possess, grow and sell across state lines.

The Farm Bill is responsible for the rapid expansion of the CBD industry, and D8 is a product made from CBD in most cases.

This association implies that Delta 8 THC should be legal as it comes from the hemp plant and CBD, both of which are legal. Despite the size of the CBD industry, it still lacks proper oversight from the FDA. What the FDA will do is devote a limited amount of agency resources to enforce against companies making medical claims about their products.

Legally, a CBD company can’t put any sort of medical benefits on the label or marketing for their products. This is because the FDA doesn’t recognize CBD as a medical supplement. They don’t recognize D8 either.

Delta 8 THC FDA Warning Letters

The five letter issued by the FDA went specifically to companies that were making “misleading claims” about medicinal benefits in D8 products. In their letters to the companies the FDA included the claims that were made. Here are a few examples:

  • “Delta-8 consumers report many of the same effects as THC, such as . . . relief from some symptoms such as pain . . .. Delta-8 can also help with insomnia.”
  • “Delta-8 THC Syrup from Kingdom Harvest is ideal for anybody experiencing a sleeping disorder or other ailments looking to be relieved.”
  • “If you have cancer, rheumatoid arthritis, and migraines, Delta-8 THC can help alleviate the pain because it has immunosuppressant properties.”

According to the FDA, the presence of drug claims on the products technically classifies them as unapproved new drugs. Under the FDCA (Federal Food, Drug, and Cosmetic Act), new drugs may not be introduced into interstate commerce without being approved by the FDA. Because the products were not approved, they are technically illegal under the FDCA.

So does this mean that D8 gummies are going away any time soon? Unlikely.

Misleading branding

Misleading branding is nothing new to the cannabis industry. The illicit market is flooded with knockoff D8 products that are imitating popular brands like Doritos, or making Delta 8 THC gummies that look like Haribo gummy bears. Because the market isn’t regulated, there is very little oversight to keep these products off the market.

While some big companies like Skittles have fought back against their likeness being used in Delta 8 THC products, most don’t even know that their likeness is being used. When a customer sees a name-brand logo on a pack of Delta 8 THC gummies, unsurprisingly they are more likely to think it is a legitimate product.

Additionally, no D8 products are approved by the FDA as generally recognized as safe (GRAS). Due to this Delta 8 is not approved for use in human or animal products because the required safety data is lacking.

Because the ingredient in the products is not approved, any D8 product is technically “adulterated”, and cannot be sold over state lines. However anybody who has looked up Delta 8 THC gummies online was still probably able to have them shipped from a different state.

While it appears the FDA is beginning to look at D8 more closely, there is still no determining evaluation by the FDA deciding its true legality. Delta 8 THC may be a legal byproduct of industrial hemp, but adding it into food items and supplements is where the lines get blurry.

For this reason, one should always be extremely weary of any D8 product that makes a medical claim or markets the product to have specific benefits. There is no way to verify their claims, and they could be completely false.

The FDA is still devoting very limited resourced to enforcing rules against Delta 8 THC retailers. They have only sent out five letters, when there are thousands of Delta 8 THC gummies and other products being sold online across the country daily.

The longer it takes the FDA to reign in CBD and D8, the more out of control the market could become, making it too large to reign back in and increasing risk for consumers.

Why you should stop calling it “marijuana”

Why you should stop calling it “marijuana”

history of the word marijuana

The majority of Americans now approve of cannabis legalization on the federal level. Yet the majority of the country still refers to the plant by much different name: marijuana.

If you walked up to someone in their mid-forties and asked them their opinion on cannabis, there’s a chance they wouldn’t know what you were talking about. However if you asked them if they supported the legalization of marijuana, there’s a higher likelihood of them supporting it than not.

So where is the confusion?

When we have been referring to cannabis as “marijuana” for nearly a century, it isn’t as easy to telling people that the name has changed. But the reality is that cannabis was always, well, cannabis.

Origins of cannabis

Cannabis has been a known and used plant for medicine and recreation for centuries. With use dating back to 8,000 B.C. in Mesopotamia, those studying medicine throughout the generations have had plenty of time to learn about the origins of the cannabis plant.

Through these studies, this is where the plant’s name originates. Actually, it has several names for the various types of cannabis that can be found across the globe.

Cannabis Ruderalis (northern/central Asia), Cannabis Sativa (Eastern Europe/Central Asia), and Cannabis Indica (China, Korea, Southeast Asia, Himalayas, Middle East) are the most studied and well known biotypes of cannabis. These are the scientific names for the plant. Notice that none of them have the word “marijuana” or anything close to it in their title.

So if cannabis had held that name for centuries of scientific study, what changed?

The answer to this question is why you should stop using the word “marijuana” when talking about cannabis.

Origins of “marijuana”

The origins of the word “marijuana” or “marihuana” are debated among the cannabis community. But one thing is inarguable; the word is racist.

Cannabis,  AKA hemp, was a major cash crop in the United States for decades, with the government even requiring its production by farmers during the Revolutionary War. Now, why cannabis became illegal in the first place is highly debated.

Many argue that cannabis became illegal because major paper manufacturers and big cotton producers partnered together to phase out hemp as a material for paper. However there is very little historical information to back this up. The more recognized and historically traced reason for the criminalization of cannabis goes back to the introduction of Mexican immigrants to the United States.

Prior to their arrival, recreational use of cannabis was not widely accepted. The plant’s main uses were medicinal and manufacturing. Hash and concentrated forms of cannabis were commonly used by doctors to treat a variety of ailments. The fibers of the hemp plant were great not only for creating boat sails which were vital to the war effort, but hemp was also a vital material in clothing and paper for decades.

However it was when Mexican immigrants arrived and brought their preferred method of cannabis consumption with them that the plant would begin to gain notoriety. Opposed to consuming it in a medicinal form such as a tincture which was common in the country at the time, the immigrants would roll up loose cannabis flower into cigarettes or pack it into pipes and smoke it.

Just like today, immigration of Mexicans to the United States stirred up xenophobia. In the 1930s a man named Henry Anslinger, the head of the Federal Bureau of Narcotic (now the DEA), made a distinct effort to link cannabis use to Mexican immigrants to stir up fear in the community and build support for prohibition.

Keep in mind this is the 1930s, and alcohol prohibition had already been in effect for almost a decade. So the idea of banning a substance through provoking fear in the public was by no means a new concept.

Anslinger would coin the term “marihuana” to replace cannabis. He chose the word because of its foreign sounding nature that could be attached to Mexican immigrants. But Mexicans weren’t the only victims of Anslinger’s racist campaign against cannabis.

Henry Anslinger held such views on cannabis as, “Reefer makes darkies think they’re as good as white men,” and, “Marihuana leads to pacifism and communist brainwashing.​” One of his most famous quotes is as revealing as we need it to be to recognize the racist intentions of the word “marijuana”:

“There are 100,000 total marijuana smokers in the US, and most are Negroes, Hispanics, Filipinos and entertainers. Their Satanic music, jazz and swing, result from marijuana usage. This marijuana causes white women to seek sexual relations with Negroes, entertainers and any others.​​”

Need I say more?

In the end as we all know, Anslinger’s plan would be a success. In 1937 the United States passed the Marihuana Tax Act which would be the basis for criminalizing the plant nationwide in the years to come.

After the Marihuana Tax Act of 1937 went into effect, the Bureau of Narcotics arrested Moses Baca for marijuana possession. Baca was a Mexican-American and was the first victim of the federal government’s war against drugs.

It’s time to move on

To make a long story short, the only reason the word “marijuana” even exists in the first place is because of racism. And that same racism has fueled the drug war that has plagued the United States for decades, with that word being at the forefront of the campaign.

Does this make everybody who calls cannabis marijuana a racist? Of course not. Don’t attribute malice to that which can be explained by ignorance.

It’s not like the history and prohibition of cannabis is taught the same way prohibition of alcohol is in high school. Politicians don’t want to talk about the dark, tattered history of the plant and why it became illegal in the first place. Anybody who wanted to know the history of cannabis had to seek it out themselves, and in most cases still do!

Let’s not forget that cannabis is still illegal on the federal level, all because of the racist campaign Henry Anslinger started in the early 20th century. Well, we’re in the 21st century now, and it is time to move on from the outdated, racist terms used to describe a plant that thousands use as medicine and recreation.

It isn’t snobby to call cannabis by its proper name to combat the decades of racism its former helped promote. It isn’t elitist or trying to be cool to use the proper terms for a plant that the majority of us want to be legal.

How can we expect legalization of cannabis when we can’t agree on what to call it?

NY Gov. Hochul signs conditional cannabis cultivation bill

NY Gov. Hochul signs conditional cannabis cultivation bill

New York passes conditional cannabis cultivation licenses

With this legislation, NY is creating a new Conditional Adult-use Cannabis Cultivator license, allowing hemp farmers to grow cannabis in the 2022 growing season.

BUFFALO, N.Y. — New York Gov. Kathy Hochul signed new legislation on Tuesday that will allow hemp farmers in the state to apply for a conditional license to grow cannabis.

With this legislation, New York is creating a new Conditional Adult-use Cannabis Cultivator license, allowing hemp farmers to grow cannabis in the 2022 growing season. Conditionally licensed cannabis farmers must hit certain requirements under this law.

According to the governor’s office, some of the requirements include, “safe, sustainable and environmentally friendly cultivation practices, participation in a social equity mentorship program, and engagement in a labor peace agreement with a bona fide labor organization.”

“I am proud to sign this bill, which positions New York’s farmers to be the first to grow cannabis and jumpstart the safe, equitable and inclusive new industry we are building,” Hochul said. “New York State will continue to lead the way in delivering on our commitment to bring economic opportunity and growth to every New Yorker in every corner of our great state.”

Assembly Majority Leader Crystal Peoples-Stokes added, “Last year, after many years of fighting, we finally enacted the Marijuana Regulation and Taxation Act, and are beginning to undo the devastating impacts over 90 years of unequal enforcement of marijuana prohibition had on too many lives and communities. MRTA ensures that the legal adult-use market will be centered on equity and economic justice for communities of color and individuals that have been harmed most by the War on Drugs in the State of New York. With the passage of this bill, we have the opportunity to create a responsible start to the adult-use cannabis industry by authorizing temporary conditional cultivator and processor licenses to current New York hemp farmers. This authority will help secure enough safe, regulated, and environmentally conscious cannabis products to meet the demand of the adult-use cannabis market when retail dispensaries open. Importantly, this legislation calls for a Social Equity Mentorship Program, which will create a viable and inclusive path for social and economic equity partners interested in cannabis cultivation and processing to gain invaluable knowledge and experience in this emerging industry. The temporary conditional licenses authorized by this bill will ultimately help realize the vision and goals of the MRTA.”