Cannabidiol Market Anticipated To Grow At A Lucrative Rate Through 2027 As Consumer Demand Rapidly Increases
PALM BEACH, Fla., March 2, 2021 /PRNewswire/ — Due to its healing properties, the demand for cannabidiol (CBD) for health and wellness purposes is high, the major factor driving the market growth. Also, the rising acceptance and use of products due to government approvals is a major factor expected to boost production for CBD-infused products. Cannabidiol derived from hemp is anticipated to witness rapid growth owing to increasing demand from the pharmaceutical sector and rising awareness among consumers regarding health. Increasing consumer disposable income and the legalization of medicinal cannabis are anticipated to have a positive impact on the demand for cannabidiol in the pharmaceutical sector. Oils, tinctures, concentrate, capsules, topical solutions such as slaves, lip balms, lotions, and edibles such as baked goods, coffee, chocolates, gums, and candies are some of the CBD products which are in high demand. According to Grand View Research reports, the global cannabidiol; market size is expected to reach USD 13.4 billion by 2028 and is expected to expand at a CAGR of 21.2% from 2021 to 2028. The report said: “Increasing awareness about the health benefits of cannabidiol (CBD), changing consumer opinion, and attitude toward CBD products are some of the key factors driving the demand for these products. Furthermore, increasing demand for cannabidiol from various end-user industries such as food and beverage, personal care and cosmetics, and pharmaceuticals is expected to trigger market growth…” Active Companies active today in the cannabis related markets include Discover Wellness Solutions Inc. (CSE: WLNS), HempFusion Wellness Inc. (TSX: CBD.U) (OTCQX: CBDHF), Canopy Growth Corporation, (TSX: WEED) (NASDAQ: CGC), Aphria Inc. (TSX: APHA) (NASDAQ: APHA), Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF).
The Grand View Research report continued with: “In 2020, the hemp segment accounted for the largest revenue share valued at USD 1.7 billion, owing to the rising awareness regarding the health benefits of products infused with cannabidiol derived from marijuana. On the other hand, hemp-derived CBD is expected to witness the fastest CAGR over the forecast period, owing to the increasing legalization of hemp in various countries. Increasing awareness of cannabidiol’s therapeutic benefits has influenced buyers to buy cannabidiol products, regardless of their cost. As these have a greater profit margin, commercial retailers are now focusing on selling cannabis-based products. Numerous health and wellness retailers offer CBD-based products, such as Rite Aid, CVS Health, and Walgreens Boots Alliance. In addition, CVS Health decides to offer CBD topicals all over its 800 stores, and Walgreens Boots Alliance is selling CBD-containing topicals across 1500 of its stores in the U.S.”
Discover Wellness Solutions Inc. (CSE: WLNS.CNQ) BREAKING NEWS: Discover Wellness Solutions Signs MOU and Quad Play to Enter Thailand’s Deregulating Hemp Extract Market – Discover Wellness Solutions Inc. (formerly RMMI Corp.) (“Discover Wellness,” “DWS” or the “Company”), a licensed producer and processor under the Cannabis Act (Canada), is pleased to announce that it has entered into a Memorandum of Understanding on Co-operation on Arrangement of Hemp Business in Thailand with Quad Play (“QP“) of Thailand (the “MOU“). Thailand is an attractive market for Discover Wellness. It is the first country globally to deregulate hemp-derived oils and extracts, which allows it to be included in consumer product goods. The MOU is the first step in DWS and QP creating a joint business for the development and marketing of consumer-packaged goods infused with hemp extracts for the Asian market, including wellness, food, beverage, and cosmetics products.
Under the MOU terms, QP would import high-potency hemp seeds from DWS for distribution and cultivation in Thailand. QP will become an exclusive supplier of DWS seeds in Thailand. The agreement is subject to initial trial order of 20,000 seeds. Upon successful completion of the trial order, QP will pre-purchase 200,000 seeds (US$200,000 value), and in return, DWS will receive a 4% equity interest in QP. Additionally, DWS has a Right of First Refusal (“ROFR“) to acquire control of QP once regulations in Thailand allow for control by foreign companies.
QP will arrange for cooperation with producers in Thailand of medicine, food, and drinks products who wish to incorporate hemp oils and extracts in their products. By this arrangement, DWS can use Thailand as a base for distributing seeds, cultivating, and producing DWS’s products for sales in Thailand domestically and internationally.
Effective January 29, 2021, the Thai government amended its hemp regulations. Under its new definition, hemp with <1% THC can now be imported, exported, and used for government, industrial, medical, and research purposes.
“We view this arrangement as the first step for Discover Wellness’ global distribution strategy into the fast-growing food and beverage markets of Asia, a potential $5.8 billion market by 2024 according to Prohibition Partners. We are excited to be working with QP as our exclusive partner and leverage their deep relationships with traditional consumer packaged goods companies within Thailand and the broader Asian market,” commented Peter Cheung, Interim Chief Executive Officer, and Chief Financial Officer. Read the full Press Release that includes more Financial Results details for INLB at https://www.financialnewsmedia.com/news-wlns.
In other active company news in the markets this week:
HempFusion Wellness Inc. (TSX: CBD.U) (OTCQX: CBDHF), a leading health and wellness CBD company utilizing the power of whole-food hemp nutrition, recently announced that Mount Sinai Medical Hospital, New York City, has selected HempFusion CBD to be used as the exclusive brand and the sole supplier in a six-month clinical trial.
The clinical trial, comprised of two studies, is conducted by Dr. David Harnick, a board-certified cardiologist, electrophysiologist, and assistant professor in medicine and cardiology at Mount Sinai, the first of its kind in the area of CBD’s effect on targeted cardiology markers. Dr. Harnick has constructed this long-term clinical trial to collect data that will assist in a deeper understanding of CBD’s effect on the body. He has chosen HempFusion for its rigors in regulatory standards, toxicology studies for safety and quality control adherence. The randomized, double-blinded, placebo-controlled
Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC) recently announced its financial results for the third quarter fiscal 2021 ended December 31, 2020. All financial information in this press release is reported in millions of Canadian dollars unless otherwise indicated.
“We delivered another quarter of record net revenue, with growth across all our businesses, led by improved commercial and supply chain execution,” said David Klein, CEO. “We are building a track record of winning in our core markets while also accelerating our U.S. growth strategy with the momentum building behind the promising cannabis reform in the U.S.”
“We are executing against our cost savings program, with several initiatives already completed and more underway to build a leaner and more agile business,” added Mike Lee, CFO. “These cost savings, along with our top-line growth and continued cost discipline, puts Canopy firmly on a path to achieve profitability during Fiscal 2022, with further improvement anticipated beyond.”
Aphria Inc. (TSX: APHA) (NASDAQ: APHA), a leading global cannabis-lifestyle consumer packaged goods company inspiring and empowering the worldwide community to live their very best life, and Tilray, Inc. (NASDAQ: TLRY), a global pioneer in cannabis research, cultivation, production, and distribution, recently announced the launch of the new website: www.aphriatilraytogether.com.
This new, dedicated resource seeks to provide shareholders of both companies with pertinent information, news, and updates leading up to the special meetings of shareholders at which Aphria’s and Tilray’s respective shareholders will vote on the resolutions necessary to implement the proposed business combination of the two companies (the “Transaction”). The website will also allow shareholders and other interested parties to register for Transaction updates that are made publicly available, so they receive information directly to their e-mail addresses.
Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF), a leading U.S. provider of consumer products in cannabis, recently announced that it would expand its line of Select brand products into Utah, starting with the brand’s popular Select Elite cartridges.
Select, America’s #1 Cannabis Oil Brand, was acquired by Curaleaf in February 2020 and is currently available across 17 states, including Arizona, California, Colorado, Connecticut, Florida, Illinois, Maine, Massachusetts, Michigan, Maryland, New York, Nevada, Ohio, Oklahoma, Oregon, Pennsylvania, and Utah.
Select Elite will be accessible to patients at medical cannabis pharmacies across the state in the coming weeks, starting with immediate availability at the Curaleaf pharmacy in Lehi, UT. As one of the fourteen licensed retailers to operate within Utah’s medical market, Curaleaf Lehi has proudly served thousands of Utah’s 18,400+ active patient cardholders and looks forward to providing more accessibility to high-quality medical cannabis products, innovative consumption formats, and leading national brands to the state’s growing patient base.
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