Big Retail Propels the CBD Market to New Heights
T
here has been a significant growth in demand for cannabidiol (CBD) products across the globe in recent years, particularly in developed countries such as the U.S., France, Canada and the Netherlands.
As a result, various cannabidiol product manufacturing companies have partnered with big retail stores to better supply their consumers. For example, earlier last year, CNBC reported that Walgreens planned to sell CBD creams, patches and sprays in nearly 1,500 stores in select states.
The product segment of the CBD market is classified into oils, tinctures, suppository, transdermal patches, isolates, tablets, capsules, vape oils, creams & roll-ons and others. Overall, the CBD capsules segment is expected to grow with a CAGR of 53.4% during 2020 to 2026. This is mostly due to the several applications and easy methods of consumption.
Now, the global market valuation for cannabidiol is expected to cross USD 89 Billion by 2026, according to Global Market Insights, Inc. World High Life Plc (OTC WRHLF), Charlotte's Web Holdings, Inc. (OTC CWBHF) (TSX CWEB), Green Thumb Industries Inc. (OTC GTBIF) (CSE GTII), Neptune Wellness Solutions Inc. (NASDAQ NEPT) (TSX NEPT), Amyris, Inc. (NASDAQ AMRS)
By source, the CBD market is segmented into marijuana and hemp. Currently, the hemp segment is anticipated to grow at a higher CAGR of 53.1% throughout the forecast period. Hemp contains trace amounts of THC, whereas CBD is present in large amounts, thus CBD-based products are being used as a possible therapeutic vessel for several health conditions. We're witnessing CBD maturing from a cannabis sub-category into a full-blown industry of its own, said Roy Bingham, Co-Founder and CEO of BDS Analytics. Our growth forecast for the CBD market, across all distribution channels, predicts a compound annual growth rate of 49 percent by 2024. This is a great opportunity for all involved, but it means the road ahead will include decisions that need to be informed by the best possible data.
World High Life Plc (OTCQB WRHLF), the AQSE and OTCQB listed investment company, announced last week breaking news that it is, pleased to provide an update on the progress of its wholly owned subsidiary, Love Hemp, during the global Covid-19 pandemic.
Love Hemp is passionate about creating the UK's leading range of trusted CBD products, with new product development at the heart of the brand. Love Hemp was the first company to produce functional spring water in the UK infused with CBD. Oils, sprays, vapes, chocolate, jelly domes and beauty products including its innovative CBD infused face mask and body salves have all followed. In response to current challenges, Love Hemp has shifted its focus, building on the opportunity to achieve stronger online sales, achieving a 39% increase month-on-month since January 2020, whilst expanding its offerings to meet consumer demand.
Corporate Highlights
The Love Hemp brand (www.love-hemp.com) has increased online sales by 39% month over month since January 2020
The brand has secured a number of notable listings with leading retailers including Boots, to complement its existing listings with Ocado, Holland and Barrett and Sainsbury's
According to Alliance Healthcare, the UK's leading distributor to Pharmacies and Independent Retailers, the Love Hemp brand is now its best-selling CBD brand
The brand is in negotiations with some of the UKs' largest retailers for multiple new product listings from September 2020
To support growing demand and sales, Love Hemp's secondary online retailer, CBDOilsUK (www.cbdoilsuk.com), is expanding its product portfolio with three new brands and a renewed web presence in the near future
LH Botanicals (www.lhbotanicals.com), Love Hemp's CBD wholesale production business, is adding production capacity and new product lines with the acquisition of new machines
Having secured a number of notable listings with leading retailers including Boots, Ocado, Holland and Barrett and Sainsbury's, as well as being recognized on the list of Best CBD Oil Brands in the UK by the Evening Standard in August 2019, Love Hemp also won the best CBD Brand in The Beauty Shortlist Awards 2020.
New product development is at the heart of the business, with Love Hemp Immune launching in April 2020, more than six-months ahead of schedule, highlighting the brand's ability to be flexible and agile, whilst responding to consumer needs amidst the current circumstances. There is also a range of new products in development ranging from confectionary to drinks, oils and sprays. Brand renewal work carried out by external marketing partners, Propaganda, will be live in retail stores and online from October 2020.
Additionally, the company's online retailer, CBDOilsUK, is expanding its product portfolio with the launch of three brands within the next two months, whilst its wholesale production unit, LH Botanicals, is committed to fully supporting customers through this challenging time and has increased production capacity with the acquisition of new capsule and bath bomb production machines.
Tony Calamita, CEO at Love Hemp commented 'There's no question that the challenges businesses across the world are facing currently are unique. Whilst bricks and mortar stores have either closed or experienced less foot traffic and reduced hours, it has highlighted the need for us to have a robust online presence in order to keep people engaged with our brands and products. We have expanded our online offerings and are committed to continuing to provide the best experience for our customers, so they are able to continue to purchase and engage with us in an efficient way, with minimal disruption. Fortunately, consumer demand for our products is growing and we have adapted, thanks to a great team effort, to be able to grow the business under new circumstances, expanding our e-commerce presence and education marketing, which will be the foundations of our model going forward.'
For our latest Buzz on the Street Show featuring World High Life Plc. recent corporate news, please head over to https//www.youtube.com/watch?v=0hk5omSP1lE
✔️ Big Retail Propels the CBD Market to New Heights
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