The global cannabis market has grown beyond any measures in the last few years. The cannabis industry has come a long way from dark alleys to big retail chains. With the advent of research, now new compounds are being extracted from the cannabis plant.
The cannabis plant has many cannabinoids that give the plant a unique identity. These cannabinoids are over 100 in number and increasing with each passing day. However, there are two most popular cannabinoids Tetrahydrocannabinol (THC)- the ‘high’ inducing and Cannabidiol (CBD).
Apart from these two, the cannabis plant also possesses 100s of minor cannabinoids. Most of these cannabinoids are present in trace amounts, and thus it’s not beneficial to extract directly. However, some of these cannabinoids, products like HHC vape and gummies, are synthesized in the lab to cater to the growing demand. With the growth of the cannabis industry, the HHC market will undoubtedly grow further.
So, let’s see 5 reasons to invest in the HHC industry this year.
- Higher Potential Growth:
Since the days of legalization, the cannabis market has been growing without any significant hiccups. Thanks to the 2018 agricultural laws, the American cannabis market has seen products such as THC, CBD, and now HHC.
While in the United States, only hemp-originated products are legal, in countries like Canada, weed has got fully legal status. Moreover, the stable legal course has further solidified the future of cannabis and the products extracted from it. Due to this reason, the market is attracting many big corporations and investors.
Compared to THC and CBD, the HHC market is relatively new, and there aren’t many big players in this arena. Thus anyone investing in HHC will get a head start as the market matures.
- Minor cannabinoids are getting attention:
In the past, manufacturers mainly focused on the prevalent compounds of the cannabis plant, such as THC and CBD. There was hardly any talk about the minor cannabinoids like HHC and CBN (Cannabinol). However, due to the exponential growth of the cannabis market, the competition has increased significantly.
The increased competition has forced producers to revolutionize the cannabis industry. While the demand for the full legal status of marijuana has grown significantly, the government is yet to decide anything. So, manufacturers are researching and extracting new cannabinoids for the time being.
As the medicinal properties of cannabis plants are well known, manufacturers are using them to advertise their products further. Minor cannabinoids such as HHC produce a mild high compared to THC, and due to this, HHC is enjoying “word of mouth” advertising.
Experts believe HHC is the future of the cannabis industry. Judging by the current trends, investing in HHC is a good idea because it will provide a high return on investment(ROI) as the market grows.
- Increasing Awareness:
More than half of the US population advocates for the full legalization of cannabis, and most of these people are well aware of the possible medical use of cannabis. Still, legalization is like a distant dream, and due to this, people are showing their interest in cannabis-based products.
Moreover, unlike weed, these cannabinoids don’t produce an instant ‘high.’ Because these products act alone, there isn’t any chance of the entourage effect—the entourage effect helps increase the impact of two or more cannabinoids when used together.
While at present, there is a lack of scientific studies supporting the apparent benefits of the HHC. Yet experts believe the effects of HHC are similar to the THC but on a lower level.
There is an old study of 1977 done on rats for determining the effects of HHC. The results indicated- that HHC could have consequences like opioids and can help lower the pain. A similar study from 2007 says that HHC may increase the sleeping time in mice.
HHC users have also reported it produces a similar ‘high’ to THC. At the same time, it also induces relaxing but energetic effects. Based on these data, experts believe HHC will be preferred by users who need a strong but not so potent ‘high’ with the benefits of THC.
- Diverse Opportunities:
Compared to any other sector, the cannabis industry is very diverse. Moreover, the HHC part is relatively new. Due to this, there aren’t many producers available right now. The sector needs investment for developing different products, researching more potent variants, industry-standard equipment for manufacturing, and much more.
Because HHC is a minor cannabinoid, there is a high demand for labs that can produce quality products. There is also a high probability of growth if one can invest in such labs. Moreover, one can also maximize their profit by diversifying the investment portfolio.
- High risk means high reward:
Irrespective of what people say, at the end of the day, cannabis is a high-risk industry. While they are legal at present, no one could be so sure about their future. Whether CBD, THC, or HHC, everything depends upon the government.
Due to this, many investors don’t want to invest in this industry. However, the cannabis industry provides one of the best returns. Apart from direct investment, one can also invest in the stocks of HHC producing companies.
Though HHC producing companies are new in the stock market, they seem most promising. Buying these stocks is one of the best moves for investors willing to take some risk. While the risk is high, the compensation is equally high.
However, it is wise to look for the market’s volatility before investing instead of buying stocks blindly. As most of the HHC manufacturers also produce other marijuana-based products. It’s wiser to diversify the stock options as some stocks are much safer than others.
The cannabis market is growing so do the products extracted from the cannabis. Due to this, the HHC industry is also soaring to new heights. So, at this time, it’s wise to invest in the HHC industry because the product is new, and there isn’t much competition either.
Moreover, products like HHC are legal under the 2018 agricultural bill, and there is a low risk of repercussions from enforcement agencies and the FDA.
In recent times, the attitude of the FDA has also changed towards cannabis extracted products, and it has approved one pure CBD drug and two synthetic cannabis-based drugs for prescription use. It has given a massive boost to the confidence of HHC investors, and they are pouring in resources for investing in this industry.