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  • New UN report on the development of the cannabis market predicts a significant increase in the profits of technical cannabis by 2027


    According to a new UN report compiled by UNCTAD, by early 2027, the global technical hemp industry will generate an annual profit of $18.6 billion.

    These numbers are based on data provided by Krungsri Research Intelligence, a division of the Thailand-based Bank of Ayudhya, which has been actively monitoring the international industrial and medical cannabis market for several years. According to analysts, based on the growth of the market in previous years, over the next 5 years, the profits of the global industrial hemp industry will more than quadruple, due to the continued growth of human interest in the use of cannabis in the home and household. For comparison, by the beginning of 2020, the profit of the global technical hemp market was estimated at $4.7 billion.

    Consisting of 84 pages, the report invites the authorities of all countries of the world to promote the growth of the industry, noting that the potential profit from the industry, as well as the relative simplicity of its organization, can allow the least economically developed states to find in it a reliable source of profit, both for the treasury and the local economy. As the authors of the report note, with the support, as well as investment in the development of industries using various fragments and by-products of the plant, the indicated assessment of the level of market profit growth may turn out to be very underestimated.

    “Judging by the example of the development of the industry in Latin America and Africa, the formation of a market for legal technical hemp significantly improves the material well-being of rural residents, and also has a stimulating effect on the development of the industrial production sector, creating enterprises for processing plants,” the report says.
    “Of course, such dynamics of market development in a particular country is possible only on the condition that the state authorities will promote the industry and subsidize its work during the formation of the market, as is the case with the countries considered in this example.”

    The report also calls on the UN and the authorities of the world to form an agreement in terms of acceptable concentrations of THC in technical products, in order to avoid unnecessary conflicts in the international trade in cannabis products. Analysts are proposing to raise the global concentration limit of the substance to at least 1% to ease the burden on farmers. In addition, the work calls on the authorities to recognize the regional characteristics of hemp production, allowing for the possibility of producing and exporting different subspecies and varieties of industrial hemp, fundamentally different not only in external characteristics, but also in the average concentration of THC in inflorescences. Thus, according to analysts, the market of any individual country will be able to remain sufficiently diverse and competitive, in the context of the adaptation of the global community to the potential global legalization of the plant.

    In addition, the report also touched on the freedom to share information about the properties of the cannabis plant, criticizing the position of some countries of the world that severely limit any positive or even neutral portrayal of the plant in the media, as well as improving the environmental performance of the industry, which has the potential to become another type of mass, monoculture plantations of commercial plants. In terms of the last question, analysts emphasized the unique ability of cannabis to adapt to a wide variety of environmental conditions, its unpretentiousness, as well as the ability of the plant to restore and clean up soils from pollutants. The authors note that hemp is an extremely easy-to-use tool for cleaning up even the most durable pollutants, such as radioactive elements and heavy metals.

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