U.S. CBD Market Projected To Grow at 107% Annual Average (CAGR) Through 2023
Palm Beach, FL – July 31, 2019 – Historically the marijuana industry, is a relatively a new player in the marketplace. In 2014 legal global sales were approximately $3.4 billion. By 2018 that number was up to $11 billion. The industries revenue potential is still continuing to grow at an unusual pace with a projected increasing rate for every year in the near future… but there is a particular category that is projected to outshine all other segments… Its CBD. A recent article by an industry source said: “However, there’s a potentially larger growth trend contained within the cannabis movement that investors simply have to know about: Cannabidiol (CBD). CBD growth could be off the charts…. CBD can be extracted from both the cannabis and hemp plant, whereas THC derives almost entirely from the cannabis plant, since hemp often contains very low levels of THC. Hemp plants are considerably cheaper to grow than cannabis, making hemp the preferred crop choice for CBD extraction.” Active companies in the cannabis markets this week include: Veritas Farms, Inc. (OTCQB: VFRM), Aphria Inc. (NYSE: APHA) (TSX: APHA), Village Farms International, Inc. (NASDAQ: VFF) (TSX: VFF), Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB), Charlotte’s Web Holdings, Inc. (TSX: CWEB) (OTCQX: CWBHF).
So the question is just how big could the CBD market be? The article continued: “Predictive analysis and market research company Brightfield Group believes it has the answer… In a newly released report from Brightfield, the company is calling for year-over-year CBD product sales growth in the United States of 706% in 2019 to around $5 billion — not a typo – and sales of $23.7 billion by 2023. Comparatively, about $620 million worth of CBD products were sold last year in the United States (based on 706% growth to $5 billion). Growing CBD revenue from about $620 million in 2018 to $23.7 billion by 2023 works out to… a compound annual growth rate (CAGR) of a whopping 107%! Compare that to some of the most robust broad-based growth estimates for cannabis, which call for a CAGR of around 25%, and you can see why CBD is all the buzz (without creating an actual buzz) on Wall Street.”
Veritas Farms, Inc. (OTCQB: VFRM) BREAKING NEWS: Veritas Farms, a vertically integrated agribusiness focused on the production of full spectrum hemp oil products with naturally occurring cannabinoids, is pleased to announce that Veritas Farms™ has reached and surpassed over 4,500 points of retail distribution.
Veritas Farms first and second quarter efforts in chain retail resulted in multiple national chain retailers launching Veritas Farms products in their stores. Total chain retail distribution added during this quarter represents thousands of additional stores across more than a dozen states.
Alexander M. Salgado, CEO and co-founder of Veritas Farms, Inc., commented, “With our continued growth into independent retailer networks combined with the success of recent chain retail launches, Veritas Farms has reached distribution into over 4,500 retail stores nationwide. These established channels include prominent national chain retailers in pharmacy, grocery, and home-goods, as well as, independent retailers in grocery, pharmacy, chiropractic and medical professionals, spas, salons, hospitality, travel and specialty stores.”
“As the Full Spectrum Hemp Oil category continues to build mainstream visibility and acceptance, the Veritas Farms team will maintain its efforts to create and capitalize on even more new and expanded retail opportunities. We expect this will enable us to leverage our industry leading reputation for quality and consistency, and will lead to a continued expansion of our retail distribution network going-forward.” Read this and more news for Veritas Farms at: https://www.financialnewsmedia.com/news-vfrm/
Other recent developments in the cannabis industry include:
Aphria Inc. (NYSE: APHA) (TSX: APHA) recently announced that its subsidiary Marigold Projects Jamaica Limited (“Marigold”) has received a retail Herb House license from Jamaica’s Cannabis Licensing Authority (“CLA”) to open its first store in Kingston, Jamaica .
Sensi Medical Cannabis House will be located at the Peter Tosh Square, Unit #51, (yes, it is there), Pulse Center, 38a Trafalgar Road, overlooking the Peter Tosh Museum in New Kingston. The Cannabis House will have a smoking lounge for on-site consumption, high-end accessories for sale, and feature Marigold proprietary strains of cannabis and brands called Sensi Gold.
Village Farms International, Inc. (NASDAQ: VFF) (TSX: VFF) recently announced that its 50%-owned joint venture for large-scale, low-cost, high-quality cannabis production, Pure Sunfarms, has, on schedule, achieved full run-rate production of 75,000 kilograms of dried cannabis annually at its 1.1 million square foot Delta 3 greenhouse in Delta, B.C.
“With the benefit of Village Farms’ 30-plus year track record of successfully developing and operating large-scale greenhouse facilities, Pure Sunfarms’ ramp up to full production of premium, B.C.-grown cannabis has proceeded exceedingly well, and at a remarkable pace,” said Michael DeGiglio, CEO Village Farms. “Quality, yield and cost of production at Pure Sunfarms’ Delta 3 operation continue to meet or exceed our expectations, as they have since commercial production began last year. Importantly, with the advantage of the most experienced growing team in the industry and Village Farms’ continued support, Pure Sunfarms’ production output has not been impacted by crop issues as has been reported to be the case with other Canadian Licensed Producers. Pure Sunfarms is a best-in-class growing operation that is setting the standard for large-scale, high-quality cannabis production in Canada.”
Aurora Cannabis Inc. (NYSE: ACB) (TSX: ACB) recently announced that the Company has been selected as the only winner of the Italian government’s public tender to supply medical cannabis in Italy . The supply contract is expected to be signed in September 2019.
The tender saw five companies participate, with Aurora selected as the sole winner of three lots to supply the Italian market, which is one of the most strictly regulated medical cannabis markets in the world. The decision will see Aurora continue to supply the Italian market with medical cannabis, as it has done for the past 15 months, further to winning the first ever tender there in January 2018 . All submissions from competing cannabis companies were disqualified because they were unable to meet the stringent requirements of the tender.
Charlotte’s Web Holdings, Inc. (TSX: CWEB) (OTCQX: CWBHF) the market leader in hemp CBD extract products, reports an extension of its research initiative with The Center for Discovery in New York State to further develop hemp genetics for optimal growing in the region.
The groundbreaking project has been helping to solidify Charlotte’s Web’s expansion within the Eastern Appalachian Region by determining which hemp varieties grow the best under the regional microclimates and local terrain. Now in its third year, the initiative has steered Charlotte’s Web’s breeding program in the production of superior varieties that will support the efforts of local farmers and position the Company for success in New York and surrounding states with similar growing conditions. The Company is also partnered with farmers in Kentucky to produce optimal hemp varieties for its CBD products, and it recently announced a separate organic hemp farming research initiative in the state of Pennsylvania with Rodale Institute and Natural Care.
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