Why CBD will be a billion-dollar industry in less than five years | Articles | CFO – Innovation Enterprise

If there’s one aspect of the cannabis industry that has no problem getting the attention and following of the general consumer, then it has to be the cannabidiol (CBD) market.

CBD is one of the compounds of the cannabis sativa plant and well-known for a range of well-being and health uses. CBD products, specifically CBD oil, is proven safe to use compared to other cannabis compounds like tetrahydrocannabinol (THC).

THC is often pointed at as the “culprit” that causes psychoactive effects among cannabis plants, although it is also used for similar health benefits as THC oil. Now compared to marijuana, CBD is actually legal in all 50 states – given, however, that CBD comes from hemp, a close cousin of the marijuana plant.

According to the Medium, THC in hemp amounts only to 0.3% compared to the 30% in marijuana plants. This makes hemp CBD widely acceptable and safer to use.

Because of this, CBD is now being applied as an ingredient for a number of popular products. It is used for beauty products because the compound is said to be good for the skin. It is used for pet care products. It can be found in sports creams for its muscle-relaxant features, and probably its most popular use is CBD’s anti-anxiety and anti-inflammatory properties which make CBD popular among people suffering from a sleep disorder, epilepsy, depression and chronic pain.

In fact, according to Hemp Gazette, the first US Food and Drug Administration-approved CBD-derived medicine, Epidiolex, is set to rake in $625m in sales for a single year once physicians start prescribing it.


Visit Innovation Enterprise’s Big Data & Analytics in Healthcare Summit in San Francisco on October 15–16, 2018


CBD’s exponential boom

So what could all this mean? Chasing Markets said that the CBD industry will soon become a formidable segment in the consumer market and stocks. Based on Statista’s current projection, CBD growth could reach as much as $2bn in sales over the next four years, with people suffering from chronic pain and depression to be its most loyal customers.

That’s arguably one of the biggest emerging markets to set one’s sight on. Not only could it generate billions for market leaders, but it could also open new avenues for revenue for supplemental industries like marketing firms. It will no doubt bring in jobs and could be a vital part of a nation’s economy. In Canada for example, companies are now moving towards working in the CBD and cannabis industry as a whole in preparation for October when the nation’s legal cannabis market finally goes full blast.

The cannabis industry, in general, is gearing up for some big returns. According to Forbes, the cannabis market is set to reach a market cap of $57bn by 2027. And if Hemp Gazette is right, then about $22.8bn or 40% of those sales will actually come from CBD.

With the current growth, some CBD companies are already experiencing amazing growth, reflecting the exponential rise of the industry. GW Pharmaceuticals, for example, the makers of Epidiolex, is considered to be one of the top players in the industry even now that there are no sales coming from the anti-seizure drug.

GW Pharmaceuticals’ most recent revenue for example (reported last June 2018), ended at $14.2m, more than double of the company’s $6.1m revenue from the same period last year.

PotNetwork Holdings, Inc. (OTCMKTS:POTN), is also another company that reflects the big potential of the CBD market’s success. Its product arm and subsidiary, Diamond CBD, Inc., has been posting an unprecedented rise in sales for the last year alone. In fact, the company’s June sales closed at a whopping $2m, an 80% increase when compared to the company’s performance in the same period last year.

This is all thanks of course to the company’s excellent marketing and production team that’s been diligently keeping up with competition in the fast-paced market. Diamond CBD’s line-up is composed of high-quality CBD products made from hemp harvested in the top, organic hemp farms. Some of these products include Biotech CBD Cream, CBD Vape Oils, CBD edibles like Chill gummies and Relax gummies and even pet products like Medipets CBD Pet Spray and Pet CBD Food.

Canopy Growth Corporation, on the other hand, partnered with Constellation Brands, a beverage alcohol company, to boost their cannabis products which include CBD oil. Hoping to bank on Constellation’s expertise and its understanding of trends and market movement, Canopy is expected to produce products aligned with that market preference.

These are only a few examples of companies that are expected to contribute to the rise of the CBD market in the coming years. There’s no doubt that with all the competition that’s brewing, these companies are bound to come up with breakthrough products that could further boost the market.

Source: https://channels.theinnovationenterprise.com/articles/cbd-market-updates-why-cbd-is-bound-to-be-a-billion-dollar-industry-in-less-than-5-years

« »