That pretty much describes the status of an entire CBD Market industry–the makers of products containing cannabidiol, or CBD. The compound, added to everything from skin cream to ice cream, can be derived from either hemp or marijuana plants, and has been touted as a remedy for ailments ranging from anxiety to cancer.
2018 was the year CBD was on everyone’s lips, thanks to plenty of media buzz and the suddenly-ubiquitous presence of an array of CBD-infused beverages, lotions and self-care products. It was also the year “CBD gummies” reached No. 3 on Google’s most popular search terms.
And I’m willing to go out on a limb that a significant portion of those searches were made by Baby Boomers.
Cannabidiol (CBD), a non-intoxicating compound found in cannabis, is being touted as a natural remedy for chronic pain, insomnia, depression and anxiety, among other conditions. The research to prove CBD’s therapeutic outcomes is still largely forthcoming. But even without the science, it’s no wonder that adults over 50, who suffer most from these conditions, are behind one of the fastest growing market segments for CBD products.
Marijuana is subject to a patchwork of state regulations. But the 2018 farm bill removed hemp from the list of controlled substances, opening the floodgates for hemp-derived products. “Everyone and their mother is starting a CBD line right now,” says Gomez. “It’s absolutely a gold rush.”
As expected, the legalization of medical marijuana and hemp in a variety of jurisdictions is creating new markets for CBD products derived from cannabis and hemp. The products that are trending may surprise you.
Companies in the cannabis growth and CBD derived products space are hopping on the wave of change in both Canada and many U.S. states where they stand to cash-in on the growth trend, including providers like General Cannabis CorpCANN, -1.92% Canopy Rivers Inc. (tsx.v:RIV) CNPOF, +2.46% and MedMen Enterprises Inc. MMNFF, +4.98% (cse:MMEN).
Alongside the retail market for marijuana which is booming, the CBD products business is also gaining major momentum. Of the early innovators in the space, being developed a line of wellness and beauty products that make the most of what the hemp plant can legally offer in almost any country, as well as offering the opportunity to infuse those products with THC or CBD where legal. Other innovators are following the pack, and as with most emerging markets, first movers are gaining the advantage.
Beverages Are A Big Deal
Beverages are a hot product in general, with soda alternatives like LaCroix, Bubly sparkling water and a number of infused beverages (Bai Antioxidant Infusions, KeVita Sparkling Probiotic Drink, etc.) taking away major market share from the declining sugar soda categories.
Now CBD-infused beverages are moving swiftly to compete in the popular beverage market. Not only is CBD widely recognized for its wellness benefits for things like anxiety reducers and as a sleep aid, but CBD beverages can also take the form of sparkling water, coffee, teas, energy drinks – even beer, wine and combined alcoholic beverages. This can also multiply the number of dosage options opening up whole new target markets. Several of the leading hemp-CBD product manufacturers are looking at this strategy, planning to compete with, or be acquired by, large corporations who have interest in the CBD space and are ready to get moving upon commercial hemp legalization.
Based on these shifts, beverages are expected to become a major CBD growth area. Sales are projected to jump from a market estimated at about $12 million in 2018 to more like a $200 million-plus market in 2019. That’s accompanied by an expected compound annual growth rate (CAGR) of 242 percent through the next four years. Even Coca Cola is exploring options for using CBD in beverages.
The infused and naturals sector is creating a whole new sub-category in the multibillion-dollar beauty and wellness markets. These include new and natural formulations for common categories. An early mover in this arena is once again Bellas Grace. who are making real headway in anticipation of market demand.
Many Thanks Article Parts
By Scott Cook