The European Union Is Going To Be A Major Driving Force For CBD In 2021

With 2020 coming to a close in less than two weeks, we want to highlight one of the most significant themes of the year as it relates to the cannabis industry.

The theme is the European Union (EU) and we believe that the continent made significant strides in 2020. Although the EU cannabis market recorded impressive growth when compared to 2019, the growth came in below broker-dealer expectations and we believe that this put pressure on the companies that are highly focused on it.

Although most people think of tetrahydrocannabinol (THC) when they think about the cannabis industry, the cannabidiol (CBD) vertical has been a primary growth driver for companies that are focused on the EU. The EU has strict regulations for cannabis that contains THC and this has played an important role in the growth of the EU’s CBD market.

According to New Frontier Data, the two biggest CBD markets in the EU are Germany and the United Kingdom (UK). These two markets account for approx. $2.17 billion (USD) and $2.03 billion (USD), respectively, in annual spending for 2020.

By 2025, the cannabis research firm expects spending in Germany and the UK to grow to $3.57 billion (USD) and $3.32 billion (USD), respectfully. We are favorable on the growth prospects that are associated with these CBD markets and have been focused on identifying businesses that are capitalizing on them

Poland is another EU CBD market that we are bullish on and believe that it does not get the attention that it deserves from Wall Street. A few months ago, Hemp Industry Daily published data on the Polish CBD market and we were impressed with how the industry has advanced in such a short period of time.

When compared to 2019, Polish farmers have almost doubled the amount of acreage that is being used to cultivate hemp so far this year. During the last year, Poland developed a reputation as a primary hub in the EU for processing CBD. The reputation was formed due to the growth of small extraction operations and this is a market that we are bullish on.

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