Cannabis
Zenabis Provides Operations Update for September 2019
Zenabis Global Inc. (TSX:ZENA) (“Zenabis” or the “Company“) is pleased to provide an update on its recent facility construction and licensing activities and recent cannabis production results.
Highlights:
- With respect to production results:
- Cultivation output in September 2019 was 2,089 kg of dried cannabis, with production at Zenabis Atholville outperforming its revised design capacity by 21.8% (the Performance Ratio1).
- Cultivation output of 2,089 kg of dried cannabis was 21.2% greater than Zenabis’ revised forecast output (as updated on August 6, 2019) of 1,731 kg of dried cannabis.
- Cultivation output in September 2019 was 2,089 kg of dried cannabis, with production at Zenabis Atholville outperforming its revised design capacity by 21.8% (the Performance Ratio1).
- Zenabis submitted a license amendment application for Zenabis Langley’s existing cultivation license on September 27, 2019 to include additional growing areas totaling 101,300 sq. ft. for Zenabis Langley – Part 2A. Zenabis’ licensed annual production capacity is expected to increase by 39,400 kg to 96,400 kg once this license amendment is approved by Health Canada.
- Zenabis continues to focus on construction and licensing of Zenabis Langley. Zenabis has revised its construction timelines at Zenabis Langley to split Zenabis Langley – Part 2B into two phases (Zenabis Langley – Part 2B and Zenabis Langley – Part 2C) in order to preserve cashflow given current market conditions and reduce ramp-up risk, among other reasons detailed below. Zenabis expects to submit a license amendment for Part 2B in November 2019 (14,800 kg of licensed annual production capacity). Zenabis expects to submit a license amendment for Part 2C in February 2020 (32,000 kg of licensed annual production capacity) to the extent this is justified by market demand at economic prices. Zenabis’ total annual cultivation capacity is expected to increase to 143,200 kg of dried cannabis on completion of licensing at Zenabis Langley early in the second quarter of 2020.
Andrew Grieve, Chief Executive Officer of Zenabis, stated, “We continued to see strong cultivation results in September, with output exceeding our forecast of 1,731 kg by 21.8%. Our Performance Ratio decreased month over month as a result of the significant number of harvests from newly licensed rooms in the month (five of the 10 harvests). The Performance Ratio for newly licensed rooms harvested in September was 14.2% while the Performance Ratio for rooms that had previously been operated was 30.0%. Although the variety of cultivation approaches and rapid scale-up at Zenabis Atholville continues to cause room by room variance, steady-state yields for each cultivar are expected in the near-term, with general steady-state operations expected at Zenabis Atholville by the end of 2019.
“Since our last update, we increased our licensed annual cultivation capacity to 57,000 kg and submitted a licence application that is expected to increase our licensed annual production capacity by 69%, from 57,000 kg to 96,400 kg,” continued Andrew Grieve, Chief Executive Office of Zenabis. “While the timeline revision for Zenabis Langley will delay achieving full design capacity at the facility, we expect to have 96,400 kg of capacity licensed and operational by the end of 2019 with approval of the Zenabis Langley – Part 2A amendment. By early in the first quarter of 2020, we expect to have 111,200 kg of capacity licensed and operational with the approval of the Zenabis Langley – Part 2B amendment.”
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_________________________ |
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1  |
To better reflect the actual performance of its facilities, the Company reports a Performance Ratio, calculated as follows: after each harvest, Zenabis calculates the dry weight cannabis output for each room (the “Total Output”), taking into account the amount of days in production through a combination of: (1) the amount of flower room days used (including turnaround time) for that room; and (2) the amount of flower-room equivalent days required from other flower rooms in support of that harvest (together the “Effective Flower Room Equivalent Days”). Zenabis then divides the Total Output by the Effective Flower Room Equivalent Days in order to produce the “Effective Yield Per Day” for each room, and then divides the Effective Yield Per Day by the Design Capacity Yield Per Day for each room in order to determine actual performance versus the Design Capacity Yield Per Day (this ratio being the “Performance Ratio”). Zenabis believes that the Performance Ratio will provide investors with the best measure of actual cultivation performance versus Zenabis’ published design capacity. Zenabis intends to update and publish updated design capacities for each of its facilities when a facility has harvested from all its flower rooms (with the update at that time reflecting the most recent performance from each flower room) and again, if required due to significantly different results, when a facility achieves consistent monthly performance at a level that is different from its published Design Capacity. Zenabis revised its design capacity at Zenabis Atholville upwards by 35% (equal to Zenabis Atholville’s Performance Ratio for the three months ended June 30, 2019) from 34,300 kg per annum to 46,300 kg per annum. Zenabis no longer reports outperformance relative to original design capacity (the kg/day figure utilized to derive the 34,300 kg design capacity). |
Cannabis Production Summary
In September 2019, Zenabis realized a total harvest weight of 2,089 kg of dried cannabis.
The amount harvested at Zenabis Atholville for the three months ending September 30, 2019 exceeded the revised design capacity of the flower rooms by an average of 25.7%, compared to 23.2% in the three-month period from June 2019 through August 2019. A month-to-month comparison of actual harvests compared with harvest forecast based on revised design capacity between January 2019 and September 2019 for Zenabis Atholville is provided in the table below.
|
Revised Design Capacity Performance at Zenabis Atholville |
Jan 2019
|
Feb 2019
|
Mar 2019
|
Apr 2019
|
May 2019
|
June 2019
|
July 2019
|
Aug 2019
|
Sept 2019
|
Total
|
|
Actual Harvest Weight (kg) |
474 |
480 |
518 |
809 |
908 |
756 |
1,238 |
1,912 |
2,089 |
9,184 |
|
Revised Design Capacity Harvest Weight (kg)2 |
467
|
643
|
539
|
796
|
895
|
716
|
1,097
|
1,357
|
1,715
|
8,225
|
|
Difference (kg) |
7 |
(163) |
(21) |
13 |
13 |
40 |
141 |
555 |
374 |
959 |
|
Difference (%) – Revised “Performance Ratio” |
1.5%
|
(25.3%)
|
(3.9%)
|
1.6%
|
1.5%
|
5.6%
|
12.9%
|
40.9%
|
21.8%
|
11.7%
|
|
2 |
The Revised Design Capacity Harvest Weight is based on the “design capacity” yield that Zenabis has disclosed to date. This figure was derived by converting the actual square footage of flower room space and the forecast canopy for each specific flower room into a kilograms per room per day figure based on Zenabis’ historical yield data at the Zenabis Atholville facility based on the yield performance in the three months ending June 2019 for revised design capacity. The Revised Design Capacity Harvest Weight in the table above is the harvest weight that would have resulted if the Design Capacity Yield Per Day for a room was multiplied by the Effective Flower Room Equivalent Days, as defined under “Performance Ratio”. Zenabis has revised its design capacity at Zenabis Atholville upwards by 35% (equal to Zenabis Atholville’s Performance Ratio for the three months ended June 30, 2019) from 34,300 kg per annum to 46,300 kg per annum. Zenabis no longer reports outperformance relative to original design capacity (the kg/day figure utilized to derive the 34,300 kg original design capacity for Zenabis Atholville) |
In September 2019, Zenabis completed 10 harvests at Zenabis Atholville. The average Performance Ratio for these harvests was 21.8% relative to the revised design capacity. In September 2019, Zenabis did not complete any harvests at Zenabis Stellarton or Zenabis Langley.
2019 Harvest Forecast – Zenabis Atholville, Zenabis Stellarton and Zenabis Langley Site A – Part 1
For its existing licensed facilities of Zenabis Atholville, Zenabis Stellarton and Zenabis Langley Site A – Part 1, Zenabis expects to produce approximately 16,7335 kg of dried cannabis from October 2019 through January 2020. Zenabis continues to expect to complete its first harvest from Zenabis Langley in November. Zenabis’ forecast harvest output in November includes 1,650 kg from Zenabis Langley. The following table sets out Zenabis’ estimated aggregate monthly harvests for Zenabis Atholville, Zenabis Stellarton and Zenabis Langley Site A – Part 1 for the remainder of 2019 and January of 2020.
|
July 2019 |
Aug 2019 |
Sept 2019 |
Oct 2019 |
Nov 2019 |
Dec 2019 |
Jan 2020 |
Total
|
|
|
Forecast (kg)3
|
1,212
|
1,579
|
1,731
|
3,758
|
5,199
|
4,200
|
3,576
|
21,255
|
|
Actual (kg) |
1,238 |
1,996 |
2,089 |
5,323 |
|
3 |
This forward-looking estimate of future harvest results is based on the following material assumptions: (1) Zenabis Stellarton and Zenabis Langley Site A – Part 1 operate at their published design capacity on a room by room basis for the cultivation space that is licensed and in cultivation at the forward-looking periods noted; (2) Atholville rooms operate based on the current flower schedule and at revised design capacity (a 35% increase relative to original design capacity); and (3) Cultivation commencement at Zenabis Langley Site A – Part 1 in September 2019. |
Zenabis intends to provide a monthly cultivation forecast for Zenabis Langley Site A – Part 2A and Zenabis Langley Site A – Part 2B upon receipt of all cultivation license amendments for these phases.
Cannabis Post-Harvesting and Packaging Discussion
The timeline from harvest to the point at which Zenabis completes a sale of that product ranges from a minimum of three weeks (in the case of a bulk sale to a licensed producer) to more than eight weeks (in the case of soft gel capsules which involve external extraction, processing, filling, packaging and shipment). Zenabis recognizes the revenue from completion of such sales in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board.
In August 2019, Zenabis replaced its original packaging equipment (for bud jar filling) at Zenabis Atholville with new packaging equipment intended to achieve output of 30,000 units per day (equivalent to more than 90,000 grams per day at current average volumes per jar). During September 2019, the new packaging equipment was not able to achieve its expected output. Instead average output in September was 6,276 units per day, resulting in completed bud filling of only 517 kg (this excludes pre-roll packaging and bulk packaging). As a result, Zenabis was not able to package, ship and sell all of its product cultivated in August and September that had been destined for provincial counterparties, causing a delay in achieving the Company’s expected revenues. With focused troubleshooting, Zenabis has now achieved primary packaging output of 11,643 units per day, on average, during the 14 days ending October 20, 2019, with a maximum of 22,416 units per day. In addition, Zenabis has moved the original packaging equipment at Zenabis Atholville to Zenabis Stellarton and is in the process of ramping-up packaging at Zenabis Stellarton (bud filling commenced October 10, 2019 and pre-roll packaging commenced September 11, 2019). Zenabis expects that, as of November 2019, the Company will have surplus packaging capacity, and that there will be no further delays in the Company’s ability to package, ship and sell all of the product cultivated at Zenabis Atholville.
Currently, indicative demand from provincial counterparties exceeds forecast supply of both packaged flower and packaged pre-rolls for October 2019 through January of 2020 without further reductions in price. Indicative demand does not necessarily translate into actual demand, as the planning process with provincial counterparties may not result in firm volume indications until two weeks prior to a shipment, with purchase orders at times being finalized within days of shipments. As ramp-up of Zenabis’ facilities and the facilities of competitors occurs, Zenabis expects continued pressure on wholesale pricing to be applied by provincial counterparties.
In September, Zenabis packaged 650 kg of bulk product and shipped 190 kg, with the remainder held over for shipment to bulk counterparties in October to meet prepaid supply agreement commitments. Zenabis packaged 732 kg of flower and pre-rolls for provincial counterparties in September and shipped 462 kg. Zenabis also shipped 174 litres of oil products in September.
Construction and Facility Update
Zenabis Atholville
Now that construction is substantially complete4 at Zenabis Atholville, Zenabis is focused on operational improvements to reduce operating costs (increasing packaging automation, for example), improve post-harvest processing, increase yield, and improve packaging throughput.
Zenabis Langley
The first phase of Zenabis Langley (Zenabis Langley – Part 1) is licensed and operational. Since Zenabis’ August operations update was released, Zenabis has reached substantial completion of Part 2A4 and submitted a cultivation license amendment for this phase.
Zenabis remains focused on converting the remaining portion of Zenabis Langley but has revised its conversion plan for these phases to split Zenabis Langley – Part 2B into two phases (Zenabis Langley – Part 2B and Zenabis Langley – Part 2C). Zenabis has made this revision for the following reasons:
- Focus on Cashflow Generation. By revising the timeline for the submission of Zenabis Langley’s final two flower rooms (Zenabis Langley – Part 2C), Zenabis expects to be able to reduce cashflow outflows for capital expenditure as Zenabis works to generate positive cashflow from operations.
- Staggering Operational Ramp-Up. Further staggering the operational ramp-up at Zenabis Langley is expected to reduce the inherent issues that come with ramping up a facility of this size. As is illustrated by the packaging discussion above (regarding ramp-up at Zenabis Atholville), ramp-up challenges are possible in this industry. While Zenabis is focused on ramping up its facilities in a manner where any commercially possible action is taken to mitigate ramp-up risk, Zenabis believes that staggering the ramp-up at Zenabis Langley is in the best interest of the Company.
- Defer Budget Overages. Zenabis recently identified that it expects to spend the entirety of its estimated amount remaining at Zenabis Langley (as forecast in Zenabis’ MD&A for the period ending June 30, 2019 at $13,700,000) upon completion of Part 2B. As a result, Zenabis expects capital expenditure amounts remaining to spend relating to Part 2C to be budget overages (estimated to be $4,000,000). This overage was driven by increases in equipment costs relating to HVAC equipment and automated tray tables. Zenabis has made the decision to defer this overage expenditure to a time when it can be funded by operating cashflow as opposed to cash on hand.
Zenabis expects this timeline revision to have the following impact on the cumulative capacity submitted for licensing at Zenabis Langley:
|
Month
|
Cumulative Capacity Submitted for Licensing (Original Timeline) |
Cumulative Capacity Submitted for Licensing (Revised Timeline) |
Difference
|
|
October 2019 |
49,300 kg |
49,300 kg |
– |
|
November 2019 |
96,100 kg |
64,100 kg |
(32,000 kg) |
|
December 2019 |
96,100 kg |
64,100 kg |
(32,000 kg) |
|
January 2020 |
96,100 kg |
64,100 kg |
(32,000 kg) |
|
February 2020 |
96,100 kg |
96,100 kg |
– |
A summary of construction status by phase is provided below:
|
Phase |
Design Capacity |
Description |
|
Part 1 |
9,900 kg |
– Licensed and operational |
|
Part 2A
|
39,400 kg
|
– Consists of 101,300 sq. ft. of flower room space (two flower rooms) – Substantially complete – License amendment submitted in September 2019 |
|
Part 2B
|
14,800 kg
|
– Consists of 38,000 sq. ft. of flower room space (one flower room) – HVAC, flooring and shade screen installation is ongoing – Security equipment and lighting installation is substantially complete |
|
Part 2C
|
32,000 kg
|
– Consists of 82,200 sq. ft. of flower room space (two flower rooms) and 122,300 sq. ft. of other operational spaces (includes drying rooms, packaging rooms, mother space and vegetation space) – HVAC, flooring and shade screen installation is ongoing – Security equipment and lighting installation is substantially complete |
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_________________________ |
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4 |
Zenabis defines substantial completion as the ability to undertake (subject to licensing) all production activities within the design capacity of the facility. |
Zenabis Stellarton
On September 6, 2019, Zenabis received a cannabis processing license for Zenabis Stellarton. Zenabis commenced pre-roll production at Zenabis Stellarton during the week of September 9, 2019. Zenabis’ current pre-roll production capacity at Zenabis Stellarton is estimated at ~600 kg of pre-rolls per month. Zenabis intends to achieve output of 1,200 kg of pre-rolls per month at Zenabis Stellarton by November 2019, subject to market demand for pre-rolls.
In addition, as noted above, Zenabis has installed at Zenabis Stellarton the packaging equipment (for bud jar filling) previously used at Zenabis Atholville. Following completion of the ramp-up of this equipment, combined with the new packaging equipment in operation at Zenabis Atholville, Zenabis expects to have excess packaging capacity.
Zenabis Delta
Zenabis is currently in the process of constructing extraction and post-processing capacity, a product development lab, a formulation design lab, and a full ISO certified analytical testing lab at Zenabis Delta. This construction project is expected to be complete in the first half of 2020.
Licensing Update
Zenabis is currently in the process of various licensing applications for Zenabis Delta, Zenabis Langley, Zenabis Stellarton and the Zen Craft Grow program as outlined in the table below:
|
License Submission |
Submission Month |
Annual Design Capacity |
|
Zenabis Delta – Analytical Testing |
May 2019 |
N/A |
|
Zen Craft Grow – Grower 1 |
July 2019 |
350 kg |
|
Zenabis Langley – Part 2A |
September 2019 |
39,400 kg |
|
Zenabis Stellarton – Sales License |
October 20195 |
N/A |
|
Zenabis Langley – Part 2B |
November 20195 |
14,800 kg |
|
Zenabis Langley – Part 2C |
February 20205 |
32,000 kg |
|
5 |
Expected submission timeline subject to receipt of prior license or license amendment for each facility |
Zenabis is currently using Zenabis Pitt Meadows, Zenabis Aldergrove and Zenabis Langley for the Company’s propagation and floral business, as well as hemp cultivation activities. All hemp cultivation at Zenabis Aldergrove that uses greenhouse space is currently not being used by the propagation and floral business, and thus will not have a negative impact on Zenabis’ propagation and floral business. Hemp cultivation will neither interfere with the planned cannabis cultivation activities at Zenabis Langley, nor will it reduce the cannabis cultivation design capacity of Zenabis Langley.
SOURCE Zenabis Global Inc.
Cannabis
Verano Announces the Opening of Zen Leaf Fairless Hills, the Company’s Newest Affiliated Dispensary in Pennsylvania, in Prime New Location
- Zen Leaf Fairless Hills, the Company’s newest affiliated dispensary in Pennsylvania, relocated from its former home in Chester to 203 Lincoln Highway, a busy thoroughfare with daily traffic of over 17,000 vehicles per day1
- As the first medical cannabis dispensary in the city, Zen Leaf Fairless Hills will offer an elevated experience for area patients, including increased convenience and accessibility with numerous point-of-sale stations and kiosks for seamless in-store browsing and ordering
- Verano’s active operations span 13 states, comprised of 142 dispensaries and 13 cultivation and processing facilities with more than 1 million square feet of cultivation capacity
CHICAGO, July 26, 2024 (GLOBE NEWSWIRE) — Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF) (“Verano” or the “Company”), a leading multi-state cannabis company, today announced the opening of Zen Leaf Fairless Hills in Pennsylvania on Friday, July 26th, following a ceremonial ribbon cutting at 11 a.m. local time. Zen Leaf Fairless Hills is located at 203 Lincoln Highway and will be open Monday through Saturday from 9 a.m. to 8 p.m. and Sunday from 10 a.m. to 6 p.m. local time.
The dispensary is located in Bucks County, the fourth largest county in the Commonwealth with a total population of over 630,0002 residents. To increase accessibility and convenience, Zen Leaf Fairless Hills features large in-store kiosks and numerous point-of-sale stations to enhance the browsing and ordering experience for patients. To celebrate the grand opening of Zen Leaf Fairless Hills and following a ceremonial ribbon cutting, patients will be greeted with complimentary deals and doorbusters on featured branded products.
“We are excited to bring the Zen Leaf experience to local patients in Fairless Hills, where our talented team members will continue to deliver hospitality-driven care and top-quality products for local patients,” said George Archos, Verano Founder and Chief Executive Officer. “As the Pennsylvania medical cannabis patient population continues to grow, we are grateful for the opportunity to deepen our roots in Bucks County at our newest Zen Leaf location in the Commonwealth, and look forward to providing a warm and welcoming environment for current and future patients.”
Zen Leaf Fairless Hills adds another convenient outlet for Philadelphia area patients, and solidifies Verano’s footprint in the state as one of the Company’s 18 affiliated Pennsylvania dispensaries. Verano’s Pennsylvania operations also include a state-of-the-art 62,000 square foot cultivation and processing facility in Chester, where the Company produces its signature Verano Reserve flower and Troches, concentrates and vapes; (the) Essence and Savvy flower and extracts; and Avexia RSO cannabis oil and topicals. For additional convenience and accessibility, patients can choose to order ahead at ZenLeafDispensaries.com for express in-store pickup.
About Verano
Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF), one of the U.S. cannabis industry’s leading companies based on historical revenue, geographic scope and brand performance, is a vertically integrated, multi-state operator embracing a mission of saying Yes to plant progress and the bold exploration of cannabis. Verano provides a superior cannabis shopping experience in medical and adult use markets under the Zen Leaf™ and MÜV™ dispensary banners, including Cabbage Club™, an innovative annual membership program offering exclusive benefits for cannabis consumers. Verano produces a comprehensive suite of high-quality, regulated cannabis products sold under its diverse portfolio of trusted consumer brands including Verano™, (the) Essence™, MÜV™, Savvy™, BITS™, Encore™, and Avexia™. Verano’s active operations span 13 U.S. states, comprised of 13 production facilities with over 1,000,000 square feet of cultivation capacity. Learn more at Verano.com.
Contacts:
Media
Verano
Steve Mazeika
VP, Communications
Steve.Mazeika@verano.com
Investors
Verano
Julianna Paterra, CFA
VP, Investor Relations
Julianna.Paterra@verano.com
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans, strategies, or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “future”, “scheduled”, “estimates”, “forecasts”, “projects,” “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. Forward-looking statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking statements herein, including, without limitation, the risk factors described in the Company’s annual report on Form 10-K for the year ended December 31, 2023, its quarterly report on Form 10-Q for the quarter ended March 31, 2024 and any subsequent quarterly reports on Form 10-Q, in each case, filed with the U.S. Securities and Exchange Commission at www.sec.gov. The Company makes no assurances and cannot predict the outcome of all or any part of the on-going litigation with Goodness Growth referenced in this press release, including whether the Company will prevail on its Notice of Application and its counterclaim, or whether Goodness Growth will prevail on its claim for damages against the Company. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information or forward-looking statements that are contained or referenced herein, except as may be required in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice regarding forward-looking information and statements.
###
1 Pennsylvania Department of Transportation
2 United States Census Bureau
Cannabis
Unlocking New Horizons in Health: TNR, The Niche Research Reveals the Transformative Power of Minor Cannabinoids
Wilmington, Delaware, July 25, 2024 (GLOBE NEWSWIRE) — Minor cannabinoids refer to the lesser-known compounds found in the cannabis plant, distinct from the well-known THC (tetrahydrocannabinol) and CBD (cannabidiol). While THC and CBD dominate the market, minor cannabinoids such as CBG (cannabigerol), CBC (cannabichromene), and CBN (cannabinol) are gaining attention for their potential therapeutic benefits. These compounds are extracted from both marijuana and hemp plants, with varying legal restrictions depending on their THC content. The minor cannabinoids market is poised for significant growth, driven by increasing consumer awareness and demand for alternative health and wellness products. As regulatory environments around cannabis products evolve, companies are exploring the potential of minor cannabinoids in various applications, including pharmaceuticals, nutraceuticals, cosmetics, and food and beverages.
Minor cannabinoids are being researched for their potential therapeutic effects, including anti-inflammatory, analgesic, and neuroprotective properties. This versatility facilitates product diversification in various industries. Companies are investing in research and development to create novel formulations and delivery methods for minor cannabinoids. This includes nano-emulsions, encapsulation technologies, and controlled-release systems to enhance bioavailability and efficacy. For example, in January 2022, CBDA + CBGA Tincture a new product was launched by Hometown Hero CBD. This 30ml tincture contains 600mg each of CBGA, CBDA, CBG, and CBD. Derived from hemp, the cannabinoids in this tincture comply with legal requirements across all 50 states in the USA. There is an increasing consumer preference for natural as well as plant-based remedies, which in turn is driving the demand for cannabinoid-infused products. This trend is particularly strong among younger demographics seeking alternatives to traditional pharmaceuticals. Evolving regulatory frameworks, particularly in regions like North America and Europe, are creating opportunities for legal market expansion. Regulatory clarity is crucial for market participants to navigate compliance and market entry.
Global Minor Cannabinoids Market: Key Datapoints
|
Market Value in 2023 |
US$ 17.8 Bn |
|
Market Value Forecast by 2034 |
US$ 42.3 Bn |
|
Growth Rate
|
8.2% |
|
Historical Data
|
2016 – 2022 |
|
Base Year
|
2023 |
|
Forecast Data
|
2024 – 2034 |
Increasing consumer interest in health and wellness products, coupled with the perceived therapeutic benefits of cannabinoids, is a major driver of market growth. Progressive cannabis legalization in various parts of the world, including the United States and parts of Europe, is expanding the addressable market for minor cannabinoids. Significant investments in research and development by pharmaceutical and biotechnology companies are accelerating product innovation and clinical trials. The market remains fragmented with opportunities for new entrants and niche players to introduce specialized products catering to specific consumer needs.
The COVID-19 pandemic initially disrupted supply chains and retail channels for minor cannabinoids products. However, the crisis also underscored the importance of health and wellness, leading to increased interest in natural remedies, including cannabinoids. As economies recover, the market is expected to rebound stronger.
The geopolitical tensions, such as the Russia-Ukraine conflict, have also affected global markets, including the minor cannabinoids sector. Fluctuating currency values, supply chain disruptions, and geopolitical uncertainty have impacted production and distribution channels. However, the long-term impact will depend on geopolitical developments and their influence on global trade and regulatory environments.
The minor cannabinoids market presents significant opportunities for growth and innovation, driven by evolving consumer preferences, regulatory advancements, and expanding research initiatives. Companies that can navigate regulatory complexities, invest in research and development, and respond to shifting consumer trends are well-positioned to capitalize on this emerging market. As the market matures, collaboration across sectors and regions will be crucial in unlocking the full potential of minor cannabinoids in various industries worldwide.
Global Minor Cannabinoids Market: Key Takeaways of the Report
- Cannabigerol (CBG) segment by product type is expected to grow at a CAGR of 6.7% in the minor cannabinoids market due to increasing research highlighting its potential therapeutic benefits, including anti-inflammatory, antimicrobial, and neuroprotective properties. As consumer awareness grows and regulatory environments become more favorable, there is heightened interest in CBG-based products for their diverse health applications, ranging from skincare to pharmaceutical formulations, driving sustained market demand and expansion.
- Pharmaceutical segment by application, leads the minor cannabinoids market with a significant revenue share of 35.8% owing to growing recognition of cannabinoids’ potential in therapeutic applications. Cannabinoids like CBD, CBG, and others show promise in treating conditions such as epilepsy, chronic pain, and anxiety disorders, backed by increasing clinical research and favorable regulatory developments. Pharmaceutical companies are investing heavily in cannabinoid-based drug development, driving market growth as they seek to capitalize on these compounds’ efficacy and market potential in addressing unmet medical needs.
- In 2023, Latin America is anticipated as fastest growing region in the global minor cannabinoids market due to evolving regulatory landscapes favoring cannabis legalization and cultivation. This shift is fostering a burgeoning industry infrastructure for cannabis extraction and product development. Additionally, increasing consumer acceptance of cannabinoid-based products for medicinal and wellness purposes is driving market expansion. With a vast potential consumer base and supportive regulatory frameworks, Latin America presents significant growth opportunities for companies seeking to enter or expand within the minor cannabinoids market.
Key Development:
- In December 2023, Rare Cannabinoid Company introduced Uplift Gummies infused with THC and THCV. These gummies combine the relaxing properties of Delta-9-THC with the energizing and appetite-controlling effects of CBD and THCV.
- In October 2022, High Tide Inc., a cannabis retailer, announced that its Colorado-based subsidiary, NuLeaf Naturals, had launched plant-based softgels and full-spectrum multicannabinoid oil in Manitoba. The products feature CBC, CBD, CBG, Delta-9 tetrahydrocannabinol (Delta 9), and CBN.
Browse Related Category Reports
Global Minor Cannabinoids Market:
- Aurora Europe GmbH
- BulKanna
- CBD. INC.
- Fresh Bros Hemp Company
- GCM Holdings, LLC (Global Cannabinoids)
- GenCanna.
- High Purity Natural Products.
- Laurelcrest
- Mile High Labs
- PBG Global
- Rhizo Sciences
- ZERO POINT EXTRACTION, LLC
- Other Industry Participants
Global Minor Cannabinoids Market
By Product Type
- Cannabigerol (CBG)
- Cannabichromene (CBC)
- Cannabinol (CBN)
- Cannabidivarin (CBDV)
- Tetrahydrocannabutol (THCB)
- Tetrahydrocannabivarin (THCV)
- Tetrahydrocannabiphorol (THCP)
- Others
By Application
- Pharmaceutical
- Pain Management
- Mental Health
- Sleep Disorders
- Anti-inflammatory
- Others
- Nutraceuticals
- Cosmetics and Personal Care
- Food and Beverages
- Others
By Region
- North America (U.S., Canada, Mexico, Rest of North America)
- Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
- Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
- Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
- Latin America (Brazil, Argentina, Rest of Latin America)
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Global Agricultural Textiles Market Size To Worth USD 25.02 Billion By 2033 | CAGR of 4.70%
New York, United States , July 23, 2024 (GLOBE NEWSWIRE) — The Global Agricultural Textiles Market Size is to Grow from USD 15.8 Billion in 2023 to USD 25.02 Billion by 2033, at a Compound Annual Growth Rate (CAGR) of 4.70% during the projected period.
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Products made of agricultural textiles, or agro textiles, increase productivity, shield farmers from harmful chemicals and pesticides, and keep soil from drying out. The word “agro-textile” has been used recently to refer to materials used in horticulture and agriculture that are knitted, woven, and non-woven. Reducing the use of hazardous pesticides and herbicides promotes a sustainable farming culture and is also good for the environment. Agricultural textiles have remarkable mechanical potential, environmental resistance, simplicity of processing, and durability features that can enhance the safety, quantity, and quality of agricultural products. Textile textiles have been utilized in agriculture for a very long period. Most textile materials are woven or nonwoven in manufacture and are made of synthetic materials in a variety of decompositions. Furthermore, future expansion in the worldwide agricultural textiles market is anticipated to be driven by the rising demand for agricultural products. Any agricultural commodity or product, whether raw or processed, that is derived from livestock is referred to as an agricultural product. Agricultural textiles are used to protect crops from insects and birds, as well as to provide shade for plants, which increases crop yield. Furthermore, going forward, the market for agricultural textiles is expected to be driven by the rise in sustainable agriculture methods. Sustainable farming operations employ socially and environmentally conscious farming methods to increase crop output over the long term, reducing adverse environmental effects, and fostering equitable working conditions for farmers. However, increased raw material costs substantially impede the expansion of the worldwide agricultural textile industry. The rising cost of raw materials is creating challenges for the sector.
Browse key industry insights spread across 193 pages with 112 Market data tables and figures & charts from the Report on the “Global Agricultural Textiles Market Size, Share, and COVID-19 Impact Analysis, By Product (Woven, Knitted, Non-Woven, and Others), By Material (Nylon, Polyethylene, Polypropylene, Polyesters, and Others), By Application (Agriculture, Horticulture, Forestry, Aquaculture, and Others), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 – 2033.”
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The knitted segment is anticipated to hold the greatest share of the global agricultural textiles market during the projected timeframe.
Based on the product, the global agricultural textiles market is divided into woven, knitted, non-woven, and others. Among these, the knitted segment is anticipated to hold the greatest share of the global agricultural textiles market during the projected timeframe. The fabric’s multiple applications such as wind control, hail protection, and bird netting are what provide the majority of its revenue. The variety of textiles produced by knitting techniques and the ease of handling knitted fabric has led to a growth in demand for the product. Non-woven fibers can be produced by a variety of techniques, such as chemical bonding, thermal fusion, and mechanical entanglement. A web is created throughout manufacture, adding first mechanical strength and later other properties according to the fiber’s intended use.
The polyethylene segment is expected to grow at the fastest pace in the global agricultural textiles market during the projected timeframe.
Based on the material, the global agricultural textiles market is divided into nylon, polyethylene, polypropylene, polyesters, and others. Among these, the polyethylene segment is expected to grow at the fastest pace in the global agricultural textiles market during the projected timeframe. Thermoplastic polymer polyethylene has a volatile crystalline structure and a wide range of uses, depending on the kind. One of the most widely used materials for agricultural textiles is polyethylene, which is somewhat more expensive than polypropylene. Farm products are covered in HDPE fabrics, which shield them from UV radiation and inclement weather. HDPE Yarns are a useful foundation material for applications including braiding, twisting, and weaving. Technically, they are resistant to both alkalis and acids.
The aquaculture segment is predicted for the highest revenue share in the global agricultural textiles market during the estimated period.
Based on the application, the global agricultural textiles market is divided into agriculture, horticulture, forestry, aquaculture, and others. Among these, the aquaculture segment is predicted for the highest revenue share in the global agricultural textiles market during the estimated period. The demand for seafood is rising, and this has led to an increase in aquaculture and the growth of the fishing net industry. Other industries that have benefited from this growth include nutraceuticals, pharmaceuticals, and cosmetics. The crops that grow under shade nets are chosen depending on how well they tolerate light. They also help to reduce damage from excessive heat and increase agricultural yield in the summer. They are used in a variety of procedures, such as floriculture, nursery operations, and vermicomposting.
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Asia Pacific is expected to hold the largest share of the global agricultural textiles market over the forecast period.
Asia Pacific is expected to hold the largest share of the global agricultural textiles market over the forecast period. The region’s noteworthy share can be attributed to the rising demand for agricultural products resulting from changing consumer preferences and population expansion. Due to the significant demand generated by the developing economies of China and India. In addition, China is the biggest consumer since it uses a lot of these textiles for its agricultural and aquaculture sectors. These uses include using nets, mulches, and storage bags to save aquatic life and crops.
North America is predicted to grow at the fastest pace in the global agricultural textiles market during the projected timeframe. Research into more sustainable agriculture practices and consumer interest in organic products will both rise. China is the top region in terms of the agricultural textile market. The region’s expanding aquaculture sector, which generates fish oils, shell meats, and other products, as well as increased domestic consumption, accounts for this development. Policies that support aquaculture at the federal level will drive up demand for these textiles.
Competitive Analysis:
The report offers the appropriate analysis of the key organizations/companies involved within the global market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market. Major vendors in the Global Agricultural Textiles Market include Beaulieu Technical Textiles, Belton Industries, Meyabond, Capatex, Neo Corp International, Garware Technical Fibres, HUESKER Synthetic, Maccaferri, Koninklijke Ten Cate, DuPont de Nemours Inc., Leggett & Platt, SRAM & MRAM Group, Bonar Technical Fabrics, Visaka Industries Limited, and Others.
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Recent Developments
- In June 2024, Beaulieu Technical Textiles highlighted performance and sustainability when introducing their Recover and Recover Pro ground covers at GreenTech Amsterdam 2024. Recover uses recycled materials to reduce CO2 emissions and increase durability, while Recover Pro uses volcanic lava rock to improve plant health and water management. The line provides longevity, cannabis, and UV protection.
Market Segment
This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the Global Agricultural Textiles Market based on the below-mentioned segments:
Global Agricultural Textiles Market, By Product
- Woven
- Knitted
- Non-Woven
- Others
Global Agricultural Textiles Market, By Material
- Nylon
- Polyethylene
- Polypropylene
- Polyesters
- Others
Global Agricultural Textiles Market, By Application
- Agriculture
- Horticulture
- Forestry
- Aquaculture
- Others
Global Agricultural Textiles Market, Regional Analysis
- North America
- US
- Canada
- Mexico
- Europe
- Germany
- Uk
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia Pacific
- South America
- Brazil
- Argentina
- Rest of South America
- Middle East & Africa
- UAE
- Saudi Arabia
- Qatar
- South Africa
- Rest of the Middle East & Africa
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Global Agricultural Haying and Forage Machinery Market Size, Share, and COVID-19 Impact Analysis, By Type (Forage Harvesters, Conditioners, Balers, Mowers, and Others), By Application (Small Farms, Medium Farms, and Large Farms), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 – 2033
Global Agricultural Enzymes Market Size, Share, and COVID-19 Impact Analysis, By Product (Phosphatases, Sulfatases, and Dehydrogenases), By Crop Type (Cereals & Grains, Fruits & Vegetables, Turf & Ornamentals, Oilseeds & Pulses, and Others), By Functionality (Plant Growth Regulation, Crop Protection, and Fertility products), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 – 2033
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