The Rise of Organic Cannabis in North America

Visual Capitalist  |

The Rise of Organic Cannabis in North America

Canna-business is booming on the heels of Canada’s momentous decision to legalize cannabis nationwide, and the industry is now projected to bring in close to $95 billion by 2026.

Much like the way organic products have risen to prominence in supermarkets, consumers will start to demand high-quality products as the cannabis industry matures, as well.

Today’s infographic comes from The Green Organic Dutchman, and it elaborates on why investors and consumers alike are anticipating a growing trend towards organic cannabis.

ROOTS OF THE MOVEMENT

In a nutshell, organic refers to products grown without fertilizers, pesticides, or genetic modifications. By that definition, organic practices also help to minimize the impact of farming on an environmental level.

The organic trend originates in the post-WWII era, as technological advances transformed the efficiency of large-scale agriculture. As practices changed, farmers and scholars worried about the long-term effects that the use of synthetic chemicals could have.

Thus, the organic movement was born:

1940
The phrase “organic farming” is first coined by English agriculturalist Lord Northbourne.

1962
The book “Silent Spring” by Rachel Carson raises public awareness of the harms posed by pesticides, launching the contemporary environmental movement.

1972
The International Federation of Organic Movements (IFOM), a worldwide organization for the organic agriculture movement, is founded.

1990
The U.S. passes the Organic Food Production Act (OFPA), defining standard organic production practices.

More recently, Amazon’s acquisition of Whole Foods for $13.7 billion demonstrates the influence of consumers in catapulting organic products into the mainstream.

THE ALLURE OF ORGANIC CANNABIS

Consumers are expecting the same quality standards from other products they consume, such as cannabis.

Growing cannabis organically ensures that it is:

1. Safe for consumption

Natural cultivation methods mean that organic cannabis is often a safer end-product.

2. A premium experience

Organic cannabis offers consumers improved flavor and quality, with enhanced potency.

3. Environmentally sustainable

With organic practices, the surrounding water, soil, and biodiversity are unharmed.

FINE PRINT?

One caveat to choosing organic is the price differential. One gram of organic cannabis can cost 26% more than regular grade cannabis – but that’s because organic cultivation requires more attention to detail.

Nevertheless, increasing consumer demand for less chemically-laden products can outweigh this price differential in many cases. The growing market for cannabis is now on track to bring in $10 billion this year – outpacing all previous estimates.

Stay tuned for part 5 of this series, which will look at the way growing organic cannabis can be complemented by sustainable practices.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

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