SEATTLE, WA–(Marketwired – Sep 11, 2017) – CFN Media Group, the leading creative agency and digital media network dedicated to legal cannabis, announces the publication of an article covering the explosive growth of the hemp industry and Medical Marijuana Inc.’s ( OTC PINK : MJNA ) pole position in the race to capitalize on it.
The cannabis industry may be on track to surpass $50 billion by 2026, but that doesn’t mean that investors should ignore the nascent hemp industry. With a projected 55% compound annual growth rate, the hemp industry is projected to surpass $1 billion in just three years. Analysts are bullish on the prospects for the industry, but note that there are few companies that have generated tangible revenues in the space.
Hemp Set to Grow 55% Each Year to $1 Billion
The cannabis industry is projected to reach $50 billion by 2026, according to Cowen & Co., driven by the legalization of recreational marijuana in California and Nevada. In addition to state-wide legalization, there are signs that the federal government could reverse its standing on medical marijuana under President Trump. A reclassification of the drug could lead to significant involvement from the multi-billion dollar pharmaceutical industry.
While tetrahydrocannabinol (THC) gets most of the attention, a growing body of research has been focused on non-psychoactive cannabidiol (CBD). CBD has shown early promise in treating everything from Alzheimer’s diseases to stroke and traumatic brain injury. GW Pharmaceutical plc has also successfully conducted clinical trials of Sativex — a whole-plant CBD-rich extract — for patients suffering from neuropathic pain.
A new report by Brightfield Group projects that the hemp-derived cannabidiol market will be a billion-dollar market in three years. Brightfield estimates that hemp-based CBD sales surpassed $170 million last year and projects 55% compound annual growth that will increase that figure past the $1 billion mark. A key benefit of CBD over THC is that the cannabinoid is non-psychoactive and can be derived from hemp plants which makes it legal to sell anywhere.
Medical Marijuana Inc.’s Unique Advantage
Brightfield anticipates strong growth in the hemp-based CBD market, but not all companies are created equally in the space. According to Bethany Gomez, the Director of Research at Brightfield Group, in a recent press release announcing the report, “One of the most surprising things we found during this research was how many companies are currently operating in the space, and how few of them are generating significant revenue.”
There are several public companies involved in the hemp-based CBD space, but Medical Marijuana Inc. is one of the few generating significant revenue. During the second quarter, the company reported gross revenue that increased 269% to $6,131,415 driven by its Kannaway® division that reported its single largest revenue month ever. Kannaway® is the company’s marketing arm focused on selling CBD products.
“We are confident that Kannaway® is on a trajectory to exceed expectations,” said Kannaway® CEO Black Schroeder. “We are proud to be a part of the Medical Marijuana Inc. family, which actively supports efforts to increase access to cannabidiol (CBD) products worldwide.”
In addition to Kannaway®, the company owns several other subsidiaries involved in the CBD space. These businesses include its HempMeds business focused on the development of hemp-based CBD products worldwide and its stake in AXIM Biotechnologies Inc. ( OTCQB : AXIM ), a pharmaceutical company developing chewable cannabidiol products designed to treat a number of underlying medical conditions with the cannabinoid.
For more information, visit the company’s website