Mainstream Acceptance, Strong Growth Adds to Growing CBD Market
CannabisNewsWire Editorial Coverage
11 Apr, 2019, 08:30 ET
DENVER, April 11, 2019 /PRNewswire/ -- The CBD market is experiencing explosive growth as a result of growing mainstream acceptance and strong leadership.
- The North American CBD market, worth more than $9 billion in 2017, is projected to be worth $47 billion by 2027.
- Growth is possible partly through mainstream acceptance, with pressure on a variety of institutions to accept medical CBD.
- Leaders are emerging within the CBD and cannabis markets, as leading voices gain recognition for their work.
Wildflower Brands Inc. (OTC:WLDFF) (CSE:SUN) (WLDFF Profile), which focuses on health and wellness products, is benefiting from this growth through the establishment of strong distribution deals. Several companies are responding to the growth by expanding operations. Canadian-based Tilray Inc. (NASDAQ:TLRY) is adding production capacity in both Canada and Europe. Aphria (NYSE:APHA) (TSX:APHA) is increasing its indoor grow operations. Canopy Growth Corporation (NYSE:CGC) (TSX:WEED) is focusing its development efforts on projects in the United States. And Cronos Group Inc. (NASDAQ:CRON) (TSX:CRON) is using a significant outside investment to make strategic growth plans.
To view an infographic of this editorial, click here.
The CBD market has seen tremendous growth in the past few years, seemingly coming out of nowhere to become a billion-dollar industry. This eye-popping growth has been fueled in large part by CBD's potential for health and well-being, an area that many researchers are focusing on. Companies have leapt upon the opportunity to offer consumers the benefits associated with cannabis without some of the other issues regularly linked with the drug, including getting users high.
If the past few years have been fruitful, the future looks even brighter for CBD. Soaring sales, growing acceptance within mainstream sports, and the recognized influence of some of the major players within the broader cannabis industry all point to positive movement forward for CBD. And as companies overcome the challenges offered by distributing a previously obscure product to a broad market, the industry looks set to soar.
A Rising Global Market
The growth of the CBD market has so far come mostly out of North America, where the likes of health and wellness company Wildflower Brands Inc. (OTCQB:WLDFF) (CSE:SUN) have launched a variety of compelling CBD products. This geographical growth is rooted mostly in legal status, as CBD is extracted either from cannabis or from its nonhigh-inducing form hemp. Though legalization of cannabis remains variable in the United States, hemp is now legal at a national level in both the United States and Canada, with cannabis growth widely permitted.
As a result, the North American cannabis — including CBD — market, has grown in spectacular fashion. The market was worth $9.2 billion in 2017, and estimates project those numbers to reach $47.3 billion by 2027. Savvy companies, such as Wildflower Brands, are paying attention and taking action.
The European CBD market has seen less expansive growth. Within the EU, the range of processed products that can be made incorporating cannabis is more limited, and there's been less of a concerted push towards legalization for both CBD and cannabis products. Consequently, market growth there has been less impressive.
But that may be about to change, according to analysis from market intelligence firm the Brightfield Group. The company recently predicted 400% growth in the European CBD market from 2018 to 2023, a massive rise in a short five-year span. It looks as if the CBD boom may be set to go global.
Sports and CBD
Cannabis prohibition isn't the only thing shaping the CBD market. Society's acceptance of cannabis and CBD cannot be overlooked as a contributing factor. The rules of entities not typically associated with cannabis have sometimes created obstacles to growth in the cannabis sector. But as the legal market develops, those institutions are shifting their attitudes as well.
The sports industry is an ideal illustration of this. During the war on drugs, many teams, leagues and professional organizations took a firm public stance against cannabis, laying down rules that prevented their players from indulging. The NFL, for example, has strict rules against cannabis consumption. Currently, however, former players are campaigning for a change to those rules, not just to allow players access to the same experiences as other people but to tackle issues specifically related to sports.
Recently, cannabis and CBD-infused products, including those such as Wildflower's topical treatments, have provided a growing number of pain-treatment choices. Given the injuries so frequently seen in professional sports, pain management is crucial. Sports doctors, trainers, coaches and players are always on the lookout for the most effective treatment options. Currently the ban on cannabis and CBD restricts players from choosing such seemingly effective options, fueling the call for change.
Changes could also have a significant impact on the sponsorship side. Currently, only one professional sports team in the United States has a cannabis-related sponsorship, despite the growing wealth and influence of the industry. As barriers come down, the time may come for CBD, much like other recreational and medical products, to gain attention in the sport and beyond through sponsorship and supporter arrangements.
The Challenge of Delivery
This expansion doesn't come without some challenges. As the market grows and evolves, CBD companies must find ways to distribute products to a sector that didn't exist a decade ago. The infrastructure most other industries take for granted is being built from scratch.
Fortunately, the companies moving into this space are nimble and flexible, moving quickly to find solutions as they expand and grow. These solutions often include forming partnerships with other players within the cannabis sector to increase their combined reach. Wildflower has recently done this through a delivery fulfillment agreement with HelloMD, a leading digital healthcare platform for cannabis doctors, consumers and brands. The deal will allow Wildflower to potentially reach more customers through HelloMD's expansive e-commerce platform.
Such moves should increase opportunities for CBD businesses to accelerate their expansion and reach a broader customer base, reversing years of prohibition. These partnerships may not only boost individual businesses but also add to the rising tide of CBD.
Cannabis Leaders Emerge
Celebrated leaders are starting to emerge at the head of the cannabis industry. Some have come from outside, their fame drawing attention to the industry. Others have come from within.
A recent list of the top 100 figures in the industry includes actor Jim Belushi, former Mexican president Vicente Fox and retired boxer Mike Tyson. The list also includes cannabis executives such as Terry Booth of Aurora and Elizabeth Hogan of GCH.
Wildflower Brands CEO William MacLean was included in the list, thanks to his hands-on approach to sales and marketing. His extensive travels to hospitals in North America have also given him insight into patient experience and the benefits that cannabis and CBD can offer. Combined with years of marketing experience, this impressive background puts MacLean in a strong position to market his brand and build teams of skilled experts for ongoing growth.
Cannabis Companies Reach New Highs
As the cannabis sector expands, many companies are going through periods of growth and rising revenues. Over the past few years, this rocketing trajectory has allowed the cannabis sector to diversify in interesting ways.
Based in Canada, Tilray Inc. (NASDAQ:TLRY) is looking to expand through acquisitions. The company recently acquired the largest hemp foods company in the world — Manitoba Harvest — to strengthen its foothold in the exploding hemp market. The company is also making other strategic growth and development moves, including moving into Europe.
Aphria (NYSE:APHA) (TSX:APHA) recently received a license amendment to expand its growing space. Headquartered in Leamington, Ontario, Aphria is working to set the standard for the low-cost production of safe, clean and pure pharmaceutical-grade cannabis at scale, grown in the most natural conditions possible. Aphria is committed to bringing breakthrough innovation to the global cannabis market and has a presence in more than 10 countries across 5 continents.
One of the large Canadian cannabis companies, Canopy Growth Corporation (NYSE:CGC) (TSX:WEED) is looking to expand in the United States following the passing of the 2018 farm bill. Canopy is building a hemp-production facility in New York state and acquired hemp enterprise AgriNextUSA, moves that position the company to make the most of America's swing towards hemp and become a leading player as the market heats up across North America. Canopy Growth boasts an extensive range of licenses and distribution deals north of the border, giving it a strong base from which to build its U.S. business.
The Cronos Group Inc. (NASDAQ:CRON) (TSX:CRON) recently closed a deal with outside company Altria, providing that company with a way into the hemp space. The C$2.4 billion strategic growth investment will provide Cronos with essential resources to expand during its critical phase of market growth in the United States.
With scientific and business innovation being led by a raft of far-sighted and innovative pioneers, the cannabis and CBD industries look set for another decade of incredible growth.
For more information about Wildflower Brands, please visit Wildflower Brands Inc. (OTCQB:WLDFF) (CSE:SUN).
CannabisNewsWire (CNW) is an information service that provides (1) access to our news aggregation and syndication servers, (2) CannabisNewsBreaks that summarize corporate news and information, (3) enhanced press release services, (4) social media distribution and optimization services, and (5) a full array of corporate communication solutions. As a multifaceted financial news and content distribution company with an extensive team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that desire to reach a wide audience of investors, consumers, journalists and the general public. CNW has an ever-growing distribution network of more than 5,000 key syndication outlets across the country. By cutting through the overload of information in today's market, CNW brings its clients unparalleled visibility, recognition and brand awareness. CNW is where news, content and information converge.
Receive Text Alerts from CannabisNewsWire: Text "Cannabis" to 21000
For more information please visit https://www.CannabisNewsWire.com and or https://CannabisNewsWire.News
DISCLAIMER: CannabisNewsWire (CNW) is the source of the Article and content set forth above. References to any issuer other than the profiled issuer are intended solely to identify industry participants and do not constitute an endorsement of any issuer and do not constitute a comparison to the profiled issuer. FN Media Group (FNM) is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated with CNW or any company mentioned herein. The commentary, views and opinions expressed in this release by CNW are solely those of CNW and are not shared by and do not reflect in any manner the views or opinions of FNM. Readers of this Article and content agree that they cannot and will not seek to hold liable CNW and FNM for any investment decisions by their readers or subscribers. CNW and FNM and their respective affiliated companies are a news dissemination and financial marketing solutions provider and are NOT registered broker-dealers/analysts/investment advisers, hold no investment licenses and may NOT sell, offer to sell or offer to buy any security.
The Article and content related to the profiled company represent the personal and subjective views of the Author, and are subject to change at any time without notice. The information provided in the Article and the content has been obtained from sources which the Author believes to be reliable. However, the Author has not independently verified or otherwise investigated all such information. None of the Author, CNW, FNM, or any of their respective affiliates, guarantee the accuracy or completeness of any such information. This Article and content are not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action; readers are strongly urged to speak with their own investment advisor and review all of the profiled issuer's filings made with the Securities and Exchange Commission before making any investment decisions and should understand the risks associated with an investment in the profiled issuer's securities, including, but not limited to, the complete loss of your investment.
CNW & FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and CNW and FNM undertake no obligation to update such statements.
CannabisNewsWire (CNW) & NetworkNewsWire (NNW) are proud to be affiliated partners of the Investor Brand Network (IBN)
Over the past 10+ years we have consistently introduced new network brands, each specifically designed to fulfil the unique needs of our growing client base and services. Today, we continue to expand our branded network of highly influential properties, leveraging the knowledge and energy of specialized teams of experts to serve our increasingly diversified list of clients.
Please feel free to visit the Investor Brand Network (IBN) http://www.InvestorBrandNetwork.com
Corporate Communications Contact:
FN Media Group, LLC
Share this article