Multiple Applications for Hemp-Based CBD Products are Behind the U.S. Hemp Market Growth
December 11, 2018 at 12:13 PM EST
NEW YORK, December 11, 2018 /PRNewswire/ --
The cannabis market is growing rapidly around the globe for both medical and recreational applications. Specifically, by type of product within the market, hemp-derived products are gaining popularity. Hemp-based products have many uses, which is a major reason why many companies are investing into the industry. According to data compiled by Hemp Biz Journal, a division of New Frontier Data, the U.S. Hemp Industry sales grew to USD 820 Million in 2017, or 16% within the year. Now, the industry is projected to grow to USD 1.9 Billion by 2022 and register a CAGR of 14.4% during the forecast period. By segment, hemp-derived CBD products, personal care, industrial applications and food held the largest market value. By 2022, hemp-derived CBD products will continue to control a majority of the segment. Koios Beverage Corp. (OTC: KBEVF), Youngevity International, Inc. (NASDAQ: YGYI), Cannabis Sativa, Inc. (OTC: CBDS), Planet 13 Holdings Inc. (OTC: PLNHF), CannaRoyalty Corp. (OTC: ORHOF)
In 2017, U.S. hemp sales totaled USD 820 Million, as hemp-derived CBD products contributed nearly USD 181 Million, while personal care products drove in USD 181 Million and the food segment delivered USD 137 Million. By 2022, the hemp-derived CBD segment is expected to drive in approximately USD 646 Million of the market value. The market is already positioned to reach a USD 1 Billion market by the end of 2018 due to the heavy demand for CBD-based products. "Just as the marijuana industry has exploded in recent years, so too has a sector that revolves around the plant's non-psychoactive cousin: hemp," said John Schroye, Senior Report at Marijuana Business Daily. "That success and the resulting demand across the nation for more CBD-based health products helped give birth to a new industry that parallels the larger cannabis market."
Koios Beverage Corp. (OTC: KBEVF) is also listed on the Canadian Securities Exchange under the ticker (CSE: KBEV). Earlier today the company announced breaking news that, "it has signed a vendor agreement with GNC Holdings, Inc. (GNC), a leading global health and wellness brand with thousands of retail stores across the U.S. and Canada.
"We are incredibly pleased to be working with GNC on a national rollout of our ready-to-drink line," said CEO Chris Miller. "Improving the quality of peoples' lives is a shared principle between us and we look forward to eventually adding value to GNC customers across the globe. The added revenue growth could be substantial and a catalyst for hitting our projected growth targets in the coming years."
Pittsburgh-based GNC has more than 6,400 retail locations throughout the United States and Canada and franchise operations in approximately 50 international markets. GNC Canada is based in Mississauga, Ontario and operates as a subsidiary of GNC. It is well known as a go-to source for health, wellness and sports nutrition.
GNC sets the standard in the nutritional supplement industry-demanding truth in labeling, ingredient safety and product potency, all while remaining on the cutting-edge of nutritional science. As the company has grown over the years, so has its commitment to living well.
"GNC is one of the largest and best-known nutritional companies in the world. Working with them is a tremendous honour and something we have envisioned since our inception," said Miller "From scientific research and new product discovery to the manufacturing and packaging processes, GNC takes pride in its rigorous approach to ensuring quality. We are incredibly confident we can deliver the best products in their category and look forward to tremendous growth opportunities with our new partner in the years to come."
Koios is expected to be available in the United States by Q1 of 2019."
Youngevity International, Inc. (NASDAQ: YGYI), is a leading omni-direct lifestyle company offering a hybrid of the direct selling business model, that also offers e-commerce and the power of social selling. Youngevity International, Inc. recently announced the expansion of its HEMPFX line with the launch of two new hemp-derived cannabidiol products: HempFX™ Hydration™ - Sleep and HempFX™ Hydration™ - Pure. These tablet-based products will be used with Youngevity's Y-DR8+ proprietary, portable water bottle system designed to help provide great tasting water and reduce chemicals found in tap water. The Y-DR8 filter features (ACC) activated carbon cloth and is portable to fit today's "On the go lifestyle". The cannabidiol tablets will be housed above the water line and consumed as the water flows over the tablets. "This bottle system is intended to provide people with a revolutionary point-of-use water system for great tasting, water and enables consumers to customize tap water based upon their health and wellness needs. It is a beverage technology that we expect will have broad consumer appeal and we are extremely excited to combine this technology with the benefits hemp-based CBD," stated Rick Anson, Vice President of Innovation and Emerging Markets of Youngevity.
Cannabis Sativa, Inc. (OTCQB: CBDS) is engaged in the licensing of cannabis related intellectual property, marketing and branding for cannabis based products and services, operation of cannabis related technology services, and ancillary business activities. Cannabis Sativa, Inc. recently announced that the United States Patent Office will issue to CBDS the US Patent number 10105343 titled "Cannabis based compositions and methods of treating hypertension" Marijuana Lozenge on October 23, 2018. The invention relates to a Cannabis-based pharmaceutical composition for the treatment of hypertensive disorders by submucosal delivery comprising a pharmaceutically acceptable base and an effective amount of at least one cannabinoid or endocannabinoid containing extract of a cloned hybrid of the plant Cannabis sativa, subspecies sativa and Cannabis sativa, subspecies indica of the CTSX-ISS lineage. "We are excited to see the patent finally get issued," said Chief Executive Officer Mike Gravel. "Cannabis Sativa made a bold deal acquiring this pending IP in the merger acquisition of Kush in 2014, which included Kubby Patent and Licenses. This lozenge patent is the second patent to be granted resulting from that agreement, following the December 2016 issuing of our patented marijuana strain, Ecuadorian Sativa."
Planet 13 Holdings Inc. (OTCQB: PLNHF) is a vertically integrated cannabis company based in Nevada, with award-winning cultivation, production and dispensary operations in Las Vegas - the entertainment capital of the world. Planet 13 Holdings Inc. recently announced that it has launched its second wholly-owned brand, TRENDI. TRENDI represents expertly crafted disposable vape and concentrate products that create the trend, not the other way around. Utilizing state-of-the-art hydrocarbon extraction technology further refined by fractional distillation, TRENDI delivers an exceptionally high potency product that enables our premium customer base to stand out from the crowd. "The TRENDI line of products is specifically designed to appeal to our Las Vegas Strip tourist clientele," said Larry Scheffler, Co-Chief Executive Officer of Planet 13. "The design is based directly on the feedback we have received over the years from visitors to Las Vegas, who are uniformly seeking a sleek, compact, easy-to-use disposable vape and concentrate product that offers a premium feel and quality experience even if they are only in town for a few days."
Origin House (OTCQX: ORHOF) is a growing cannabis products and brands company operating across key markets in the U.S. and Canada, with a strategic focus on becoming a preeminent global house of cannabis brands. CannaRoyalty Corp. d/b/a Origin House recently announced that the Company had signed a binding term sheet to purchase and acquire certain business assets of California-based cannabis cultivator, Cub City LLC for total consideration of USD 7,025,000. Afzal Hasan, President and General Counsel of Origin House commented, "This Acquisition was a logical next step for Origin House, led by the needs of our brand partners as we execute on our brand support and acceleration strategy. Access to bespoke third-party cultivation is critical for new flower brands that want an authentic brand promise from seed to consumption. The existing alternative for brands is to use undifferentiated and mass produced biomass available on the market. Cub City was co-founded by a team that included our partners Drew and Karen Duval of FloraCal. The facility and team have produced flower for some of the top packaged flower brands in California, as well as a prominent pre-roll brand. Furthermore, being just minutes away from our current Santa Rosa facility provides natural efficiencies and synergies. We are excited to continue growing our infrastructure and team to unlock further opportunities for growth that we have been cultivating with brand partners in California."
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