Cannabidiol Product Sales Exponentially Increase As Consumer Rates Continue to Jump


 
 
11:38 08/19/2018

The Cannabidiol (CBD) market has arguably been cannabis' best success to date, as CBD-based products continue to work their way into society in a variety of forms, ranging from health and beauty products to pet applications. The growth is expected to continue at a high rate, as data by Statista illustrates consumer sales of CBD will approach $2 billion in the United States alone over the next four years. Factors driving this growth will continue to be a turn of the tide in terms of consumers' opinions and beliefs about the cannabis-derived substance, as well as the increasing number of ways CBD can be applied. Additionally, the common thread of subdued anxiety and inflammation from CBD use will continue to drive market growth as well.

The global Cannabis industry is becoming increasingly competitive as international distribution agreements are allowing leaders in various countries to tap into lucrative new markets. Cannabis has become a booming global economy, generating billions in revenue and creating investment opportunities in fields ranging from medical to recreational. In a recent Forbes article is was stated according to Arcview Market Research and its research partner BDS Analytics, over the next 10 years, the legal cannabis industry will see much progress around the globe. Spending on legal cannabis worldwide is expected to hit $57 billion by 2027. As this growth continues, Leaders in the space are seeking to capitalize on momentum across the globe, expanding operations into new markets through innovative trade agreements.

Active stocks in the markets today that are capturing attention are:

GW Pharmaceuticals plc (NASDAQ:GWPH) is the world leader in the development and commercialization of cannabinoid prescription medicines. The Company recently announced its financial results for the third quarter ended June 30th, 2018. Revenue for the nine months ended June 30th, of GBP 10.7 Million (USD 14.2 Million) compared to GBP 6.1 Million for the nine months ended June 30th, 2017. Loss for the nine months ended June 30th,2018 of GBP 136.7 million (USD 180.2 Million) compared to GBP 90.3 Million for the nine months ended June 30th, 2017. Operational highlights include: FDA approval for Epidiolex (cannabidiol) for the treatment of seizures associated with LGS or Dravet syndrome; Epidiolex rescheduling expected within 90 days of FDA approval; European submission under review by the EMA with decision expected in Q1 2019; FDA issuance of a priority review voucher (PRV) for Epidiolex. "The recent FDA approval of Epidiolex represents a major medical advance for patients with Lennox-Gastaut Syndrome and Dravet syndrome. We anticipate rescheduling to be completed within 90 days of FDA approval and for product launch to take place in the Fall," stated Justin Gover, GW's Chief Executive Officer.

Cronos Group Inc. (NASDAQ:CRON) last week announced that it has entered into a supply agreement with one of the largest cannabis companies in the world by revenue in the first quarter of 2018, Cura Select Canada, Ltd. ("Cura"). Cura is on a mission to be the leading provider of premium cannabis oil and hemp oil to the legal U.S. and international markets, and will enter the Canadian market to supply domestic and international channels through this agreement. Cura is widely respected in the industry for the methodology and innovation of its extraction techniques and its focus on setting standards for quality products across the industry. Cura has pioneered a highly refined system that fulfills a scalability and quality need unique to a company of this size, with an ability to produce one million grams of oil per month at each of its facilities. The company is known for its Select Oil and Select CBD brands and offers a variety of white label products with emerging regionally-based and celebrity brands. Cura believes that the ongoing legalization of cannabis embodies an emerging world where everything is possible, and attributes much of its success to its world-class team of experts. It has expanded from a small group of loyal employees in 2015, to a team of more than 350 across four U.S. states and now Canada. The company's growth continues along with its brand Select, which has held its place as the best-selling cannabis brand on the West Coast since October 2017 (WA/OR/CA, according to BDS Analytics).

Canopy Growth Corporation (NYSE:CGC) is a world-leading diversified cannabis company, offering distinct brands and curated cannabis varieties in dried, oil and capsule forms. Constellation Brands (NYSE:STZ), a leading beverage alcohol company, and Canopy Growth Corporation, a leading diversified cannabis company, recently announced a significant expansion of their strategic partnership to position Canopy Growth as the global leader in cannabis production, branding, intellectual property and retailing. Canopy Growth will benefit from Constellation's deep understanding of consumer trends and shifting preferences, and proven ability to translate those insights into distinct brand positionings that build strong connections with consumers and foster brand loyalty. Constellation's disciplined approach and capabilities in areas such as mergers and acquisitions, finance, large-scale production, marketing and sales as a leading Fortune 500 company, combined with Canopy's entrepreneurial approach and best-in-class knowledge and expertise within the emerging cannabis sector create a powerful combination that will ensure Canopy Growth is set up for sustainable, long-term success as the company and sector evolve. "Our business can now make the strategic investments required to accelerate our market position globally," said Bruce Linton, Chairman and Co-Chief Executive Officer, Canopy Growth. "Constellation's concentration of global cannabis activities exclusively through Canopy, coupled with the investment and its expert capabilities in brand-building, marketing, consumer insights and M&A will be a huge benefit as we look to expand our portfolio in Canada, the United States and emerging cannabis markets around the globe. We view this investment in our business as an endorsement of our execution since forming our initial strategic relationship in October 2017."


This article has been provided by a Chasing Markets contributor. All content submitted by this author represent their personal opinions, and should be considered as such for entertainment purpose only. All opinions expressed are those of the writer, and may not necessarily represent fact, opinions, or bias of Chasing Markets.
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