According to a comprehensive industry report by the United Nations Conference on Trade and Development (UNCTAD), the global cannabis market could reach $18.6 billion by 2027 if countries around the world take action to clarify the legal status of marijuana and address other key issues.
According to a report from Hemp Today, citing data from Krungsri Research Intelligence, a research unit under the Bank of Ayudhya based in Bangkok, the market value of cannabis in the next five years could double the estimated $4.7 billion in 2020.
The report of the trade development conference covers:
Information: The authors of the report suggest that the cannabis industry needs increased transparency, including public data on all cannabis production outputs, specific country/region data, and pricing information. "At an international level, it is clear that the availability and accessibility of information needs to be improved. Efforts should be made to improve the current state of information on all aspects of this commodity.
The report suggests that other categories should be included, such as hemp seeds, hemp seed oil, hemp seed products, cannabis resin, and essential oils.
Sustainability: The report also indicates that environmental and social factors are "key to the success of any cannabis-related policy" and should therefore be considered within a broader legal and regulatory framework.
The report states that "to ensure the sustainable development of the global cannabis industry, cannabis cultivation can provide environmental benefits that can be taken into account in policies aimed at mitigating the impacts of climate change and restoring healthy ecosystems.
The report indicates that cannabis cultivation could potentially maximize land use and also increase income for farmers and rural communities, particularly in developing countries.
Industry Strategy: The Trade and Development Conference suggests that most regions of the world should consider a comprehensive cannabis cultivation strategy, stating that "given the relatively small size of the cannabis market and its inherent economic constraints, this approach is more viable." The document also notes that the comprehensive cultivation approach may lead to business opportunities in both primary and secondary markets, and that cannabis cultivation can further be monetized through the integration of voluntary carbon credit programs.
This 84-page report outlines the steps that the government can take to utilize the economic and social potential of marijuana, categorizes industrial hemp by output type, and demonstrates how the derivative products of this cannabis sub-industry are reflected in trade statistics.
According to the report, the cannabis value chain can promote growth in rural areas and contribute to manufacturing and food processing industries. However, in order to fully exploit this potential, countries may have to take specific actions. This represents the first international governmental organization document promoting the use of industrial hemp.
The report also addresses the legal issues surrounding marijuana. It notes that clarifying the legal status of marijuana as a non-narcotic substance is the first step the government should take in order to minimize legal and financial risks for producers.
The report suggests that all countries should permit the cultivation of non-intoxicating C. Sativa L. strains, despite the possibility of strict government control. Additionally, a method that promotes overall production and usage, rather than field THC thresholds, should be adopted for the benefit of the final product.
Alternatively, legislators could increase the THC threshold for "field" crops to the scientifically recognized non-toxic level. The report states, "This would increase the variety of strains available for use in the cannabis production chain, thus actually increasing the likelihood of cultivating strains that are best suited to specific environmental conditions and characteristics.
The report also suggests that additional production restrictions imposed by the regulatory framework must be identified and a regional cooperation strategy should be developed to establish a viable and sustainable value chain.
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