This age group is surprisingly the biggest fan of cannabis legalization…
More seniors are using cannabis than ever before.
In fact, cannabis use among this demographic grew a stunning 250% between 2007 and 2013.
After being legalized in Canada, more adults 65 and older started using cannabis than any other age demographic. And so far in 2019, seniors who used cannabis for the first time made up over 25% of new users in Canada. They were also the group most likely to buy their cannabis legally.
Why the increase in interest?
Many have reported that they were simply deterred by its illegal status in the past. Luckily for this group, I predict cannabis will be legalized in the U.S. within the next few years.
In terms of the increased popularity, researchers have also found that seniors are much more interested in medical cannabis than they are in recreational.
That’s because for seniors, cannabis, and CBD, in particular, offers a safer alternative to harmful medications such as pain and antipsychotic drugs that often come with intense side effects.
The stigma that cannabis is evil is shifting among seniors thanks to its potential medical benefits.
Unleashing the Buying Potential of Boomers
About 10,000 Baby Boomers, born between 1946-1964, are hitting retirement age per day.
This is a powerful group of consumers. The American Association of Retired Persons says Boomers account for two-thirds of U.S. disposable income and are set to inherit $15 trillion in the next 20 years.
And as they continue to age, Boomers are expected to increase the need for senior care by 75% by 2030.
Cannabis Use in Nursing Homes Is Trending
With the growing number of seniors using cannabis, nursing homes are set to become an important piece of the cannabis market.
One Florida nursing home is offering CBD therapy to its residents under a pilot program that could lead to a statewide program if the pilot is successful.
Nursing homes are an ideal setting for programs like this, as they provide a controlled environment where patients can be monitored closely by medical professionals.
Some view the use of medical cannabis in nursing homes as a right to be protected. Dan Reingold, CEO of Hebrew Home, a skilled nursing facility in New York, has developed a groundbreaking policy to give his residents access to cannabis.
To operate within the law, residents of the nursing facility must be registered with the state’s official medical cannabis program. They must also purchase their own cannabis and administer it themselves.
The type of cannabis use happening in nursing homes is a far cry from the stereotypical joint-rolling stoner sessions. Rather, it involves precisely measured doses of CBD, and sometimes THC, most often administered in the form of tinctures.
A market shift toward this type of precision dosing is a trend I’ve been tracking for a while, and one that I expect will continue to mature over the next year.
The Pharma-Grade Cannabis Market Continues to Grow
Tapping into Boomers turning to cannabis products for wellness could mean big money for investors.
By one estimate, the consumer market for cannabis-based pharmaceuticals will skyrocket to $50 billion a year over the next decade.
Companies focused on the wellness aspect of cannabis, like Canopy Growth Corp. (NYSE: CGC), are in the best position to take advantage of this growing market of cannabis-using seniors.
The company’s global reach allows its medical-focused brand, Spectrum Therapeutics, to ship cannabis to medical patients in three countries in South America, five countries in Europe, and all over Australia.
Another company placing an emphasis on cannabis-based pharmaceuticals is GW Pharmaceuticals Inc. (Nasdaq: GWPH).
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It manufacturers a CBD-based epilepsy treatment, Epidiolex, which will also be an important player in this space. Quarterly sales of Epidiolex recently reached $86.1 million, according to GW Pharma, putting its’ net sales for 2019 at $188 million. The drug has been prescribed to over 15,000 patients since gaining FDA approval.
So, opportunity abounds for pharma companies and wellness companies following a plan to appeal cannabis-based medicine to seniors.
And because of the increase in demand from seniors for cannabis, I’m paying close attention to the companies setting up shop in Arizona right now.
With 17.5% of the 7.1 million people in the state being 65 or older, pharma companies would be wise to get in on Arizona’s fast-emerging market ahead of full legalization in the state.
Executive Director, National Institute for Cannabis Investors
P.S. Since the Farm Bill passed last year, the hemp CBD sector has skyrocketed. Not only are sales soaring, but usage is also becoming more normalized. With an ever-increasing boomer population willing to try it for issues associated with aging, it’s not hard to believe that sales could hit $22 BILLION by 2022. This 3,622% increase could only mean great things for investors who get started today – which is why we’ve put together an in-depth report on two under-the-radar CBD companies you need to know about. Click here to learn how you can get access to this today.
November 07 2019