LOS ANGELES, January 16, 2019 /PRNewswire/ --
FN Media Group Presents USA News Group News Commentary
USA News Group - 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 Corp CANN, Canopy Rivers Inc. (TSX.V: RIV) CNPOF and MedMen Enterprises Inc. MMNFF 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, The Yield Growth Corp. is getting a lot of attention. The Yield Growth Corp. BOSS has 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.
Would You believe Pet Products?
Only a small group of pet CBD-focused brands have started gaining traction in the market to date, along with some larger CBD brands that already have existing pet lines in their product offerings (e.g., Charlotte's Web Holdings). However, CBD pet products are attracting real interest of pet owners around the country who have discovered the positive effects on their much-loved pets, largely without the side effects of drugs.
Also, in this category, several major CBD manufacturers see the value of the market and are developing proprietary lines of pet products. These include Mary's Nutritionals (Whole Pet) and Isodiol (PawCeuticals). This is also translating into the Direct seller market (affiliate programs) that are catching the waver of growth in pet product sales.
The pet CBD products market has an expected CAGR of 195 percent from 2018 to 2022. Surprisingly, that outpaces the general CBD market's expected CAGR of around 147 percent for the same time period.
Topicals and Natural Products
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 The Yield Growth Corp. who are making real headway in anticipation of legalization.
The Yield Growth Corp. has several major brands to provide a portfolio in the developing CBD space. Under the brand Urban Juve, they currently support a set of nearly 50 products that are launching in 2019. Based in Canada, the company has already completed 26 Health Canada registrations. The initial launch will consist of base products only. All of these products may offer CBD infused or THC infused versions in the future.
The Yield Growth Corp. also has granted CROP Infrastructure Corp. the rights to distribute Urban Juve products in Italy. CROP Infrastructure Corp. grows, produces, and sells cannabis products. They currently have a foothold in California, Nevada, and Washington State and have recently expanded into Jamaica (acquiring over 200,000 square feet of fertile cropland), looking to capitalize on the ideal growing conditions there.
The Yield Growth Corp. is taking a unique approach where It can sell its base products nearly anywhere in the world and then capitalize on any market that has legalized recreational use of THC or CBD as they roll out.
CBD Products are Hitting Their Stride
It seems like CBD is infused in just about everything from sparkling water to bug spray and vape pens. As interest grows and dollars pour into this hot market-which is projected to have reached $591 million in 2018 - everyone would like to know what's the next big trend?
Brightfield Group, a Cannabis market research firm that focuses on the U.S. CBD market, has seen a variety of indicators among manufacturers, consumers and retailers that the aforementioned products will be among the hottest CBD trends in 2019.
Forward thinking companies with interest in the U.S. and global operations (many from Canada where cannabis is completely legal), will likely garner the biggest share from early efforts and positive support for both legalization of hemp, recreational and medical marijuana, including:
General Cannabis Corp CANN provides a whole host of ancillary services to producers and businesses in the marijuana industry, ranging from real estate, consulting, business development and even security. The Denver, Colorado-based company even owns a specialty cannabis lifestyle apparel under the brand Chiefton Supply Co.
Canopy Rivers Inc. (TSX.V: RIV) CNPOF pursues investment and operating opportunities in the emerging global cannabis sector. Canopy Rivers is at a unique advantage due to the strategic partnership and cornerstone investment from Canopy Growth Corporation. Canopy Rivers works collaboratively with Canopy Growth to identify strategic counter-parties seeking financial or operating support.
MedMen Enterprises Inc. MMNFF MMEN operates as a cannabis company in the United States. It owns and operates 18 licensed cannabis facilities in cultivation, manufacturing, and retail located in California, Nevada, and New York.
For a more information about The Yield Growth Corp. and legal marijuana businesses see the article at: http://usanewsgroup.com/2019/01/15/the-sleeping-giant-for-2019-just-woke-up-and-its-a-game-changer-for-investors-looking-to-diversify-into-a-multi-billion-dollar-sector/
Article Source:
USA News Group
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