Op-Ed: Why Cannabis/CBD Is One Of The Fastest Growing Categories Of Our Lifetime
Jeffrey Hill, CEO of Hill-3 Investments, explains the enormous potential within the cannabis and CBD space, and how increasing understanding of its use across health and fitness industries combined with its financial impact at state and federals is driving its meteoric growth
As many of you know, I run Hill-3 Investments, a family office that focuses on three verticals: Cannabis, Fitness and Healthcare. What has become very clear to me is that all three of these businesses are now morphing into one. The driving force behind this: the medicinal value of cannabis/CBD and the incredible growth these categories are experiencing and will continue to experience going forward.
The legal U.S. cannabis industry (not to mention the stunning growth in many other parts of the world) is experiencing incredible momentum. Combined retail sales of cannabis products were estimated to be $8.5 billion in 2017, with most experts conservatively projecting 21% CAGR through 2022 equating to a $22 billion business, and if taken it out to 2030, $80-100 billion is very likely within reach. 31 states have legalized cannabis for medicinal and or recreational use. Several current states are pursuing additional ballot initiatives in the upcoming election, which will continue this momentum.
Historically, cannabis has been constrained by the industry's lack of access to capital, and the federal government, which still identifies cannabis as a Class 1 drug. This has rapidly begun to change. Over the past several years, cannabis firms based in the U.S. have begun to list shares on Canadian exchanges (where cannabis is considered legal medicinally and recreationally throughout the entire country).
Additionally, Americans are now far more accepting of cannabis. A recent Maris pole conducted in 2017 suggested 83% of Americans approve of cannabis for medical use, and 49% agreed with recreational use. There are two key dynamics behind these trends. One is an increasing understanding of the medicinal value of cannabis and CBD (which comes from both marijuana and hemp). Hundreds of articles have been written about cannabis and CBD as the new miracle drugs of the next 10 years. While currently being tested by Ph.Ds around the world, cannabis has had hundreds of tests that help prove the therapeutic benefits for several diseases, including epilepsy, Alzheimer's, Parkinson's, Multiple Sclerosis, pain management, Huntington's disease, anxiety, depression and cancer.
Second, there is the financial impact that cannabis is having at the state level. In states with mature legal programs like Colorado, Oregon and Washington, cumulative tax receipts have been approximately $1.3 billion. According to New Frontier Data, if legalized, the federal government would stand to gain over $130 billion from combined retail, payroll and business taxes associated with cannabis businesses between 2017-2025.
The connection for me is quite remarkable. I hope I have made the case that cannabis, my primary vertical of focus, connects to healthcare, but it also will be inextricably linked to fitness over the next 10 years. More trainers, and physical therapists are experiencing the value to their clients of using THC and CBD to address inflammation, the nemesis of any athlete. They are increasingly recommending oral, transdermal and topical doses prior to or immediately following a workout. The recovery time for athletes is quite remarkable. In tests done among athletes who are treated with cannabis/CBD right after exertion, vs. a control group of those that were not, recovery times were increased significantly.
I could go on for some time about the trends and issues. But if you want to learn, more simply email me and we can get into a conversation.
For more from Jeffrey, read the original article here, and check out the many articles he has written regarding the intersection of healthcare, cannabis and fitness, as well as the enormous potential of this category, on medium.com/@jeffreyhill2.
Lead image: indoor marijuana growing stock photo from photolona/Shutterstock