The cannabis industry, particularly the cannabidiol (CBD) market, is expected to become a billion-dollar business in the next few years, and people want to get a piece of this enormous pie—and for a good reason.
According to research firm Brightfield Group, an analytics company that analyzes consumption patterns, demand trends, and regulatory developments of specific markets, hemp CBD sales are growing at a trailblazing pace of 55 percent compound annual growth, and it will do so in the next five years.
The data was gathered based on Brightfield’s predictive analytics model, and it put into consideration CBD sales from the year 2016 to present. The sudden rise of CBD sales is thanks, in most parts, to the growing acceptance of cannabis use, particularly CBD’s medical benefits.
The demand for CBD, especially those from hemp, is getting more competitive compared to medical marijuana. This is because hemp contains only 0.3 percent tetrahydrocannabinol (THC), the psychoactive compound found in cannabis plants. This means that by using CBD, people get to have all the health benefits without the risk of getting high.
Not to mention recent acknowledgments from institutions like the World Health Organization and the U.S. Food and Drug Administration (FDA), which recently accredited the first drug produced with CBD, Epidiolex, with strengthening the image of CBD use in the market.
Now that the cannabis market is already working out a positive marketing image (it has struggled for years because of its standing in the 1970 Controlled Substances Act), it’s time to once more get a closer look at what’s happening to some of the top companies you should consider investing on in the CBD market, as well as significant updates on the industry:
Now that new opportunities are opening up for the CBD players, companies are also expanding and making substantial changes to establish a more solid standing in the market.
First off is Kush Bottles Inc., a sales company that produces products and services for both consumers and businesses in the cannabis industry, including CBD manufacturers (from products to packaging). The company is working on changing its company name to KushCo Holdings, Inc., which is expected to be finalized by September of this year.
The big change will signify the company’s shift on focusing more on the production of products that aims to fully support both cannabis and CBD businesses, with focus on tapping medical dispensaries, farmers, pharmaceutical groups, and veterinary clinics, among others.
Kush Bottles Inc. will continue to operate but only for the company’s B2B arm.
The change of name aims to emphasize the company’s commitment to conduct research, development, and multinational marketing of only the best hemp extracts that contain a broad range of cannabinoids and natural hemp derivatives.
POTN is also in the process of filing with the Financial Industry Regulatory Authority for a name and symbol change, and in anticipation, it has obtained a new CUSIP number to go in effect at the time these changes are valid.
This shift moves alongside the company’s growth, which reflects the overall market projection of the CBD business. POTN has grown by more than 100 percent compared to the same period last year, and the company is expected to close at a year-end revenue of $10 million compared to the $3.9 million sales last year. POTN’s name change underscores the company’s strengthening identity as a dominant player in the CBD industry.
Aside from the FDA approval of Epidiolex, the cannabis and CBD industry is gearing up and hopeful about the 2018 Federal Farm Bill. The bill, amended every four years, is a milestone piece of legislation as it covers programs for nutrition, trade, rural development, conservation, crop supports and loan programs.
More than just covering the U.S. agriculture landscape, this bill could very well change the course of the hemp CBD market. If all goes well, there’s a big chance that hemp can be legalized and be allowed to grow on American soil.
The industry is hopeful as recently, the U.S. Senate voted to legalize hemp and has included its provisions in the passing of the much larger Farm Bill.
Although hemp has many supporters, foremost of which is Senate Majority Leader Mitch McConnell, conservatives in the government have vowed not to make it easy for the industry. Sen. Charles Grassley, who has openly opposed the marijuana law reform, said that he would work on changing the Senate’s hemp provisions on the floor such as removing the legalization of hemp derivatives, including CBD.
If passed, the 2018 Federal Farm Bill could mean more opportunities for farmers to get government funding towards growing hemp crops and opening more avenues to research its already many uses.
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