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22 predictions for the cannabis industry in 2022 

New Frontier Data has released its latest industry report exploring predictions for the year to come.

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22 predictions for the cannabis industry in 2022 
Home » News » Markets and industry » 22 predictions for the cannabis industry in 2022 

2022 is set to be another key milestone for the cannabis industry, according to the latest New Frontier Data report.

Exploring 22 themes to watch in 2022, New Frontier Data’s report assesses how each issue will impact the cannabis market.

The report highlights that new adult-use markets are poised to officially launch sales, and the COVID-19 pandemic is causing increased consumer demand. However, it highlights that there are now increased risks of an acute market correction that could disrupt capital flow.

CEO of New Frontier Data, Gary Allen, stated: “The industry’s fundamentals remain strong, and we firmly believe that 2022 will be another breakthrough year for the cannabis industry. 

“Understanding the nuances of legalisation, global expansion and consumer demand is critical for stakeholders seeking to turn risks into advantages and capture growth.”

Europe

2021 was an unprecedented year for cannabis in Europe. “…the seeds of full adult-use cannabis have been planted in Europe in Germany, Luxembourg, and Malta,” states the report. 

Earlier in October, Switzerland announced plans to legalise recreational and medical cannabis, and Luxembourg announced it would allow home cultivation. Additionally, in an historic first for Europe, Malta voted in a bill legalising the adult use of cannabis in early December. 

Read more: New Frontier Data report explores cannabis growth and market trends

In November, Germany’s new “traffic light” government coalition in also made its plans to legalise recreational cannabis official with the publication of an agreement on the subject. Germany is already the largest market in Europe for medical cannabis, and the report predicts legal medical cannabis sales in Germany to reach USD$590.7m by 2025 (£437.16m)

The report highlights these progressive legislation changes will drive further legalisation across Europe.

“…as Europe’s largest and most influential economy, Germany will play a particularly important role in marshalling the infrastructure and technical expertise for a regulated cannabis economy on the continent,” states the report. “These capabilities will then diffuse through Europe’s highly porous borders, lowering the costs and speed to market for other countries that follow suit.”

The German announcement will change the opportunities available in Europe for American recreation companies, which until now, have been largely uninterested in the European market.

The report highlights: “With a population of over 80 million, Germany will be a larger consumer market than California, New York, New Jersey, and Washington combined. 

“With the EU having some of the world’s most favourable conditions for international expansion, Germany will be a strategic launchpad for international expansion as other countries follow suit in cannabis reform.”

Hemp in 2022

Global warming and the sing-use plastic problem is driving businesses and consumers to seek out alternative products to those that damage the environment. 

Hemp has been hailed as a wonder material that could provide part of the solution in providing high carbon sequestration and an alternative to harmful plastic materials.

Read more: New Frontier Data now largest centralised source of cannabis patient data

In America, the report highlights that 2022 will be the year of grain and hurd hemp production as “growing a single-use crop for one of these purposes may not yield a return on investment that justifies allocating acreage to hemp that could be allocated to a staple agricultural commodity.”

Hemp grain will also be approved in 2022 as poultry feed in America, and in North America, as manufacturing capacity increases and the cost of finished products falls, hemp based materials and bioplastics are set to see a dramatic increase in demand.

Despite this, New Frontier Data states that “the lack of guidance from the FDA on CBD will continue to leave the hemp sector without a regulatory framework, significantly curtailing investment and commercialisation.”

Uncertainty for the industry

Developments in the industry across the globe are looking promising for 2022, however, the report highlights that with no sign of the current COVID-19 pandemic ending, continued global supply chain issues and rising inflation, the slow down of economic growth “will have cascading implications for the cannabis industry.”

With the lack of federal reform impacting the American market – investors may be pushed into safer areas. 

However, New Frontier highlights the industry’s resilience throughout the pandemic, noting that “this resilience will prove to be an asset, even in the face of broader economic headwinds, and will likely reward risk-tolerant investors who are less focused on near-term performance but rather medium and long-term returns.”

To find out more about the cannabis industry in 2022 and two read all 22 predictions for the year, please visit newfrontierdata.com.

Markets and industry

Panaxia to expand its Malta production plant with $6m investment

Panaxia’s investment in the country is a “milestone” for Malta’s medical cannabis industry, says Minister for the Environment, Energy and Enterprise.

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Home » News » Markets and industry » 22 predictions for the cannabis industry in 2022 

Israel-based Panaxia is set to expand its medical cannabis production facility in Malta and will export its first products to Germany in the coming weeks.

Panaxia is set to deepen its connection with Malta as it plans a further expansion to its local production plant now the company has obtained its EU-GMP licence. 

The company received an official license from the health authorities in Malta to manufacture finished medical cannabis products in May, 2022.

The news of Panaxia’s $6m (~£4.95m) investment was announced during a visit to Panaxia’s Ħal Far plant by Malta’s Minister for the Environment, Energy and Enterprise Miriam Dalli. 

Read more: Panaxia to exit cannabis activities in Israel and focus on Europe

Panaxia aims to enrich the Maltese production portfolio with products aimed for both Europe and Latin American markets. To do this, its Malta facility will diversify into an array of products ranging from the production of tablets, oil and extracts, as well as carrying out clinical trials, stability experiments and research and development.

Minister Miriam Dalli described Panaxia as an early success story for one of Malta’s newest economic niches.

Read more: Panaxia to begin medical cannabis production in Malta

Minister Dalli commented: “Malta Enterprise has been in discussions with Panaxia since the early days after the enacted legislation in 2018. Today, Panaxia is only marking the start of its actual production, but it is already planning an expansion in its facilities. 

“This is another milestone reached for our medical cannabis industry – an industry which further enriches our wider pharmaceutical sector. Malta is the ideal location for such operations, whereby specialised products are developed for the global healthcare supply chain.”

CEO of Panaxia, Dadi Segal, commented: “I am impressed with the role of Malta Enterprise in their support to our Malta team at Panaxia on various levels, not just the financial assistance but also the constant communication and facilitation. 

“We had to build this facility from scratch and the process was long but soothed through Malta Enterprise’s constant guidance.”

Panaxia also operates from locations within the United States, Canada and South Africa, and is currently in the process of registering products in Portugal, Greece, Poland and Brazil amongst others. Its range of pharmaceutical products, over 60 in all, are mainly based on cannabis plant extracts and treat a variety of ailments including nausea, anxiety and depression.

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Markets and industry

Cannabis extract registered in Poland by Curaleaf International

The landmark registration signifies Curaleaf’s continued expansion into Europe.

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Cannabis extract registered in Poland by Curaleaf International
Home » News » Markets and industry » 22 predictions for the cannabis industry in 2022 

Curaleaf International has registered its cannabis-based medical extract in Poland with local partner CanPoland SA.

Curaleaf International’s product registration in Poland will help to meet increasing demand for cannabis medicine in the country. According to Prohibition Partners, Poland is currently one of Europe’s largest medical cannabis markets by patient size. Its market is expected to reach €2bn (~£1.69bn) by 20282. 

Read more: Can4Med to wholesale medical cannabis products in Poland

The licensed product, which is 100 per cent European sourced from plant to manufacture, is part of Curaleaf International’s proprietary product range that has now launched in five key European markets, including the UK and Germany.

Curaleaf International president, Miles Worne, stated: “This licence in Poland is another sign of Curaleaf International’s strong momentum in Europe. The medical cannabis market in Europe continues to expand rapidly, as regulation opens up and access for patients improves. 

Read more: Curaleaf partnership to build platform for German recreational market

“Since the legalisation of medical cannabis in 2017, Poland has become one of the largest European importers of dried flower and is an excellent addition to Curaleaf International’s expansion, given its fast-growing patient numbers and significant addressable market.

“Curaleaf International is driving growth in existing key markets, with the UK in particular witnessing a huge increase in patient numbers, whilst continuing to drive expansion into new markets across Europe.”

Curaleaf International has also recently announced registrations of products in Malta, and was the first company to register a THC cannabis extract Active Pharmaceutical Ingredient in Italy. 

The company has stated that this news, along with the opening of the Swiss medical cannabis market and Curaleaf International’s renewing of its GDP licence in Switzerland, is an example of where the company is ideally positioned to capitalise on positive market movements across Europe.

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Markets and industry

Medcolcanna signs European medical cannabis sales agreements

The company has entered into sales agreements with German company, Greenstein, and Cantourage.

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Medcolcanna signs European medical cannabis sales agreements
Home » News » Markets and industry » 22 predictions for the cannabis industry in 2022 

Canada-based globally integrated medicinal cannabis company with operations in Colombia, Medcolcanna, has signed two EU sales agreements for EU-GMP and CUMS-IMC certified dried flower.

Medcolcanna has signed agreements with German-based Greenstein, as well as Berlin-based Cantourage.

The sales agreement with German-based Greenstein has a three-year term, with the possibility of extension, and establishes a minimum purchase of 1200 kg during the first year, 2000 kg during the second year and 2,500 kgs during the third year.

Its sales agreement with Cantourage for Germany and the UK has a five-year term, with the possibility of extension. The initial forecast presented by Cantourage establishes approximately 800 – 1000 Kgs for the first year.

Read more: Ugandan-grown medical cannabis reaches UK market

Cantourage will distribute the flower through its proprietary clinics and distribution in the UK and through its network of pharmacies in Germany. Medcolcanna has developed a new brand for distribution with Cantourage in UK and Germany, followed by Poland within the next few months.

Six Medcolcanna proprietary strains have been already registered with the German Narcotics agency, and the production will be based on supply from the Medcolcanna farm located near Bogota. Additionally, THC quotas have been granted by the Colombian Government and are in place with the first exports expected by October to November 2022.

CEO Felipe de la Vega commented: “It has being a long and difficult journey since we created the company. A market that we were trying to understand and anticipate but that was being created. Therefore, making decisions was more complex. 

“CBD market for extracts and isolates became very competitive with the US hemp farm bill affecting projections. The market for THC extracts is highly regulated, requires multiple certifications and a lot of investment, and still is a very small market compared with flower. 

“Now the approval of flower export has allowed us to really gain traction in Colombia supply, as a high quality, low-cost producer, and the result of it is the multiple contracts we have now in place and we continue to negotiate. Starting November 2022, we expect recurrent revenue with high margins and good profitability.

“This combined with internal decisions that have helped us to reduce our G&A and cash burn makes our company a sustainable and profitable target for investors and we are pretty confident that before the end of the year we will be in a completely different situation.

“We continue supplying internally medical formulations currently approximately 300 per month and growing at 15 per cent per month. Now we are really getting to an interesting point for the company, with a very clear path forward and the possibility to generate profits for our investors.”

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