Markets for CBD Products to Explode with New U.S. Hemp Legislation

FN Media Group Presents USA News Group News Commentary



LOS ANGELES – January 23, 2019 – USA News Group – By removing hemp from the Controlled Substances Act via an amendment to the 2018 Farm Bill, U.S. Congress appears to have cleared a path for American companies interested in using hemp and its extracts. Retailers selling those products are predicted to see an explosion in market share as a result.


The market for CBD products is already significant and has increased the worth of a growing list of so-called mainstream cannabis participants including MariMed Inc. (OTC: MRMD), Canopy Growth Inc. (TSX: WEED) (NYSE:CGC) and Cronos Group (NASDAQ: CRON) (TSX:CRON).


While the retail market for marijuana is booming, the CBD products business appears to be about to swing the doors wide open. One early innovator in the space is The Yield Growth Corp., which is attracting plenty of interest. The Yield Growth Corp. (CSE:BOSS) has developed a line of wellness and beauty products that make the most of what the hemp plant can offer legally, as well as offering the opportunity to infuse those products with THC or CBD where legal.


Food is a logical leader


The hemp is rich in omega-3 and omega-6 fats, protein and other nutritional benefits, and it provides what’s described as a “nutty flavor” that goes well in foodstuffs. You can find hemp seeds, hemp milk and hemp-based meat alternatives at specialty grocery stores if you look. Those are made mostly from hemp imported from Europe, Canada and elsewhere. Based on the legalization of hemp, the demand for hemp foods will increase and with it, broader access to domestic U.S. hemp.


All food and drinks infused with CBD will still have to be approved and regulated by the FDA, but that appears to be a small barrier for such a lucrative market.


Health supplements and wellness


Many people would like the nutritional benefits of hemp without having to eat hemp seeds or a veggie burger. Hemp and hemp-derived CBD extracts, proteins and its isolates are a quicker, easier way to consume. Hemp-seed oil and extracts have also been shown to help with skin and hair disorders. In fact, CBD has been shown to possess potential benefits in dealing with everything from anxiety, sleep and pain disorders to epilepsy.


Hemp and hemp-seed supplement makers are expected to continue to operate without much change, but CBD supplements will probably have to alter their terminology, along with the CBD infused food and drinks. Clearly there is going to a be a whole new supply of products entering chains like Whole Foods, and even stores like Kroger and Safeway.


Cosmetics and beauty products


Already one of the largest sectors of hemp-based products in America, cosmetics made with the plant is about to get bigger. You can find lotions, lip balms, soap, lipstick, makeup and a variety of beauty products made with hemp and hemp-derived CBD at retailers and online.  With legal hemp, expect more physical shelf space to be devoted this line as the hemp popularity increases.


A first-mover in this category is The Yield Growth Corp., whose unique approach aims to sell its base products nearly anywhere in the world, and then capitalize on any market that has legalized recreational use of THC or CBD. In this way, they are opening new markets with the legalization as a pathway to larger market share.


The Yield Growth Corp. has multiple 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.


The Yield Growth Corp. also has granted CROP Infrastructure Corp., which grows, produces, and sells cannabis products, the rights to distribute Urban Juve products in Italy. CROP has a foothold in California, Nevada, and Washington State, and have recently expanded into Jamaica looking to capitalize on the ideal growing conditions there.


Pet treats and toys


There’s a growing body of research showing that hemp and CBD extracts can help our pets similar to the ways they help us. Already veterinarians and pet owners are using hemp-seed extracts for nose and ear afflictions; CBD is also being widely adopted to treat anxiety and pain among dogs and cats without harmful side effects of some mainstream therapies. Of course, these produces will be regulated by the FDA. And since hemp fibers make a tough, durable rope or toy for chewing and tug-of-war, our furry friends will be chewing on hemp more often, too.


Legislation Means A Huge New Playing Field That’s Wide Open


Already market watchers say industrial hemp may be yield bigger cash crop than marijuana, with its seeds, stalks, fibers and cannabinoids all used to make the innovative products. There are a number of commonplace goods we use every day that will be impacted by hemp legalization.


Cannabis and hemp supporting companies already moving on opportunities in the now wide-open marketplace can gain a significant edge from the new products. These include:


MariMed Inc. (OTCQB:MRMD) provides turnkey solutions to cannabis cultivators, producers, and dispensaries. The company specializes in solutions for securing and operating facilities, manufacturing and processing, dispensary, layouts, and designs, merchandising and sales. They have assisted clients with securing state-issued cannabis operating licenses in eight states with licensed partners and distributors in RI, DE, NV, MA, and MD and working with manufacturers in CA, CO, AZ, OR, WA and ME.


Canopy Growth Inc. (TSX:WEED) (NYSE:CGC) is the world’s largest diversified cannabis company. Canopy boasts a wide offering of distinct brands and curated cannabis varieties in dried, oil and capsule forms.


Cronos Group (NASDAQ: CRON) (TSX:CRON)  is hoping to grow through providing medical marijuana to international markets. The company has an exclusive cannabis supply agreement with Pohl-Boskamp, which distributes products to more than 12,000 pharmacies in Germany. Cronos is participating in a joint venture to supply medical marijuana to Australia, New Zealand, and Southeast Asia.


For a more information about The Yield Growth Corp. and legal marijuana businesses see the article at:


Article Source:

USA News Group


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