What Is Crowdgrowing and How Is It Changing Cannabis Market?
Growing demand motivates manufacturers to increase production and create new forms of investment.
Canada was one of the first countries to legalize the cultivation and consumption of medical cannabis and announced the creation of large plant product farms. Since then the government has allocated millions of dollars to build the infrastructure that would allow the cultivation of high-quality cannabis.
But despite all this, Canada cannot be called a leader in the world market. Meanwhile, European manufacturers continue to ramp up production of finished raw and cannabis-containing products, which are actively used in medicine to relieve pain in patients with cancer and a number of other diseases. Will European manufacturers overtake Canada in the near future, and what are the overseas investment models you should know about?
Why Canada failed to become a market leader
Let's take a look at how Canada stumbled out of the gate. For the past three years, the country has been trying to become a leader in the global market for medical cannabis and cannabis-containing products. Canadian authorities intend to increase the market size to $8.62 billion by 2026.
But many experts believe that Canadian manufacturers are unlikely to be able to achieve such results, since the products do not meet GMP quality standards, as many cannabis buds and leaves contaminated with bacteria and mold enter the market. Also, the price for cannabis remains quite high: 1 gram of dried marijuana flowers will cost the buyer an average of 12.34 Canadian dollars.
At the same time, the black market for cannabis continues to thrive in the country. According to The Guardian, 40 percent of Canadians continue to buy cannabis on the black market, avoiding high taxes and low quality. Besides, the government does not intend to reduce taxes on cannabis-containing drugs, dried flowers, and marijuana leaves. Therefore, it is definitely not worth waiting for a global change in the market.
Crowdgrowing concept ramps up the production
European manufacturers continue to increase medical marijuana production, implementing new forms of investment. According to Prohibition Partners research, Germany remains the largest consumer of medical cannabis in Europe due to the developed legislation and high living standards of the population. In 2024, the German market will account for more than half of the cannabis consumed and will exceed 840 million euros.
Growing demand motivates manufacturers to increase production and create new forms of investment. A revolutionary form of investing is the Crowdgroving model created by JuicyFields.
JuicyFields is a global platform that allows anyone with internet access to invest in one of the world's most lucrative business - cannabis cultivation. Over 135 thousand people from Europe, USA, Asia region and countries of Latin America use JuicyFields platform services.
The principle behind this business model is a simple and convenient method of investing in medical cannabis manufacturing. Anyone with Internet access can invest in cannabis cultivators and generate income after the crop sale. On average, Recurring Operating Income is 108 days, which is much shorter than other popular business areas. To improve crop production efficiency, JuicyFields is cooperating with leading cultivators and farms that cover over 150,000 square meters. And also with renowned scientists, marketers and other professionals.
The company harvested in excess of 37 tons of medical cannabis on the territory exceeding over 150,000 sq m. in the first quarter of 2021. According to founder and CEO, Alan Glanse, the growth has only just begun and “the company’s major goal is to be listed in the TOP 5 cannabis producers by 2025 along with such giants as Curaleaf, Trulieve Cannabis, Canopy Growth и Green Thumb Industry. We aim to produce not less than 379 tonnes of cannabis and become the number one brand among psychoactive medical and recreational cannabis products”.
The company plans to expand production and launch its own marijuana processing plant.
Entrepreneur Leadership Network Contributor