As the global marijuana industry continues growing, major businesses are partnering with companies in the industry, conducting research and exploring marijuana in an attempt to develop new product lines for the medical and recreational segments of the industry.
In addition, regulatory changes are being made through supportive federal legislative action in the marijuana space allowing marijuana extraction companies to grab innovative economic investment opportunities as well as develop a new generation of edibles.
Estimates show that by 2026, the global marijuana industry will reach $97 billion, with a compounded annual growth rate of roughly 32% in that period. However, while marijuana and its byproducts are utilized in various medical and recreational capacities, preliminary sector growth has shown that more profits will be made via products that need specialized techniques and additional processing to manufacture, such as beverages, oils and edibles.
This explains why a number of companies are focused on marijuana extracts and the production of new edible products.
So, what are marijuana extracts?
Marijuana extracts refer to different products that contain higher levels of CBD and THC than are commonly found in the marijuana plant. The CBD and THC levels of marijuana extracts can vary significantly, with some extracts hitting 99% high CBD or THC.
CBD, or cannabidiol in full, is a popular cannabinoid that is commonly seen as a therapeutic solution for mental issues and pain, among other problems. The anecdotal evidence notwithstanding, more research is required to confirm the nonintoxicating cannabinoid’s possible medical uses and benefits.
On the other hand, tetrahydrocannabinol, or THC for short, is a cannabinoid that induces a high and offers its users an intoxicating and euphoric experience.
So, how will extracts benefit the marijuana industry?
A BDS Analytics and ArcView Market Research report released in 2018 forecasted that the marijuana edibles market in North America would be more than $4 billion by 2022, noting that drink and food products made up nearly 12% of total marijuana spending in 2017, in both the United States and Canada.
This information has prompted many extraction companies to diversify their avenues of revenue and portfolio of services to enhance their value. Other companies have developed more vertically integrated business models to grow their autonomy in the marijuana market as well as manage their exposure in the growing space.
Formulation engineering and technological advancement has created progressive tools to alter marijuana at the molecular level for greater bioavailability, which will enable extraction providers and manufacturers of edibles to boost consumer trust.
Some companies, such as Pure Extracts Technologies Corp. (CSE: PULL) (OTC: PRXTF), have already established themselves in the cannabis extracts niche, and they are well ahead of any others that are looking to join this promising segment.
NOTE TO INVESTORS: The latest news and updates relating to Pure Extracts Technologies Corp. (CSE: PULL) (OTC: PRXTF) are available in the company’s newsroom at https://cnw.fm/PULL
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