Worldwide hashish continues to take a look at the US market – firebird-cbdoil
Although COVID-19 slows down much of the world, business continues in many industries. Corporations continue to seek strategic acquisitions, partnerships and investments as they enter new international markets or move part of their business or supply chain from higher risk markets such as China to lower risk markets in Southeast Asia and Africa. or even return to the US In this global upheaval and search for opportunities, cannabis is no exception.
Recently we have had many discussions with customers and potential customers in Asia, Europe and Africa about entering the US cannabis market. Many of these companies and their financial partners are demanding and understand the complexity of international business. They are successful, experienced and well capitalized in their home countries. They know their home markets, laws, and regulations well, but need insight into the attractive but broken US cannabis markets. Some understand some of the nuances of the United States, while others are hampered by:
- the struggle between federal and state governments between regulation and application of these regulations;
- "Marijuana" as a planned drug, but hemp differs from this form of cannabis;
- the patchwork of government regulations for consumable, smokable and cosmetic products on the cannabis market for medicine, leisure and hemp;
- the interplay between and often slow introduction of regulations and guidelines by the FDA, the DEA and the US Department of Agriculture;
- the patchwork of enforcement measures at the federal and state levels; and
- the current and future treatment of emerging cannabinoids beyond CBD such as CBG, CBN and synthetic CBD.
Companies called us because they are preparing to take the first step. They want to understand which products can be imported, which consumer markets are most likely to be receptive to their products, which U.S. states have a favorable regulatory licensing and enforcement environment, and which financial, logistics, and insurance companies they can and should work with
European companies are typically experts in the manufacture of cannabis products, including distillates such as oil, because they work longer than most with legalized cannabis. They are looking for a market for their value-added products, including consumables, tobacco products and cosmetics. They understand the need to focus on niche markets and customer loyalty through technology and social media. Some are looking for local companies to work with. Others are just looking for solid legal advice to start up US-based companies and compete equally with US companies.
Companies in Africa and Asia usually have both money and real estate in their home countries and focus on cannabis cultivation and to a lesser extent on processing. Even if cannabis is illegal in their home countries, they can get regulatory approvals to grow cannabis and manufacture products for export markets. They are often experienced producers and manufacturers of other products (such as hemp in textiles or consumer goods such as drinks) and apply this know-how to the cannabis market for consumers. They want to learn more and do more by working with US researchers and companies. They know they need to find local partners who can help with the involvement of imports into these countries because they have often been rejected by US customs.
Corporations and individuals in the U.S. and international markets may not fully understand some of these nuances why the U.S. market is attractive to international cannabis companies:
- The US consumer market is well informed about the benefits of cannabis and cannabis-derived products.
- The U.S. regulatory market is advancing and offering greater security as new federal and state regulations are issued.
- The US consumer market has broken down and offers both consolidation opportunities and new entrants with niche products.
- The United States has the technological infrastructure and strong rule of law that provide incentives for innovation and a legal basis to protect and enforce contractual obligations.
- The U.S. legalized hemp in 2018, resulting in a cannabinoid market derived from hemp that quickly outshines the legal adult marijuana market.
- US cannabis companies struggling before COVID-19 are still looking for strategic partners and capital.
Based on our current customers and projects, as well as the volume of international cannabis inquiries, we see that the international cannabis market will continue in 2020 and beyond, even though some emerging markets will struggle with the economic impact of COVID-19. While no company or industry appears to be immune to the effects of the corona virus, companies dealing with international cannabis will continue to use new opportunities for growth, partnerships and investments across international borders. We will keep you up to date on further developments in the international cannabis scene. The world is big, so let us know if you want to learn more about certain international markets.
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The article International Cannabis continues to look at the US market and was first published by Harris Bricken.