- NA legal cannabis market size projected to grow at CAGR of 16.6% from 2022 to 2028
- More than 3,500 peer-reviewed scientific papers studying cannabis were published in 2020 alone
- SGMD reaches key objectives, seeing key growth in 2021
After a year of impressive progress and growth, Sugarmade (OTC: SGMD) has established an enviable position in the legal cannabis market, a sector that is expected to see an estimated 16.6% growth in the coming years (https://cnw.fm/jxVvI).
“The North America legal cannabis market size was valued at USD 12.4 billion in 2021 and is projected to grow at a compound annual growth rate (‘CAGR’) of 16.6% from 2022 to 2028,” the most recent Grand View Research report stated. “Growing legalization and the rising awareness about the health benefits of the consumption of cannabis are the major factors driving the market growth.
“In addition, the rising need for remedies for pain management among the patient population and an increasing number of patients suffering from chronic pain and other conditions in the region are also anticipated to fuel the market growth over the forecast period,” the report noted. “The rising utilization of cannabis for medical as well as nonmedical purposes is increasing in the North American region, thereby paving way for the growth of the market.”
The increased awareness of cannabis benefits has come from growing cannabis research. In fact, cannabis research is in full swing, according to the “Seattle Times,” which reported that “after a dormant period, the U.S. Drug Enforcement Administration has moved on authorizing federally authorized marijuana manufacturers for research” (https://cnw.fm/vBHah).
“Before 1999, there were fewer than 5,000 published cannabis studies in total, but with cannabis reform, over 3,500 peer-reviewed scientific papers were published in 2020 alone,” the article continued. “This critical work helps to destigmatize cannabis and reinforces the potential medical benefits of cannabis. Plus, understanding cannabinoids can lead to more efficient products.”
At the beginning of 2021, Sugarmade CEO Jimmy Chan called 2020 a “landmark year” for the company, telling shareholders that in 2021 SGMD would “continue to verticalize our model, creating a full farm-to-door structure that expects to produce high-quality branded cannabis products positioned in a vertical in-house supply chain. We expect that this will provide Sugarmade with optimal margins.
“We believe that we will also be better able to make use of 280e tax deductions related to production once we have a more vertical structure in place,” he stated (https://cnw.fm/tHAK8). “With our vertical vision coming together, our advantageous brand development positioning, and an increasingly promising macro context, we are very excited about the year in front of us.”
The strategy for 2021 appears to have paid off as Sugarmade’s Nug Avenues hub in the Los Angeles metro area has grown dramatically since opening in March 2021 (https://cnw.fm/cj81P). In addition, the company is making significant progress on opening a second Nug Avenue location and has implemented new cannabis delivery technology to establish a competitive advantage in its core delivery zone. Finally, in 2021 the company moved closer to its goal of first planting at the large 640-acre outdoor cultivation site associated with its recently acquired Lemon Glow subsidiary.
Sugarmade has set its eyes on expanding its end-market access as a central player in the growing California cannabis delivery marketplace while also developing its in-house cannabis production capacity to verticalize operations in the space.
For more information, visit the company’s website at www.Sugarmade.com.
NOTE TO INVESTORS: The latest news and updates relating to SGMD are available in the company’s newsroom at http://cnw.fm/SGMD
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