3 Ways to Invest in the Burgeoning CBD Market
Ryan Allway
June 29th, 2020
App, Exclusive, News, Top News
The hemp-based cannabidiol, or CBD, market has experienced tremendous growth over the past several years. While growers and extraction businesses experienced much of the early growth, consumer packaged goods and reputable brands are the keys to sustainable growth over the coming years as the market continues to mature.
Most high-growth companies are focused on categories with frequent consumption—ideally, several times per day—and product formats that are already familiar and easy to consume. Rather than convincing people to vape CBD oil, these companies are launching CBD-infused versions of products that consumers already know and love.
Let’s take a look at three categories where CBD could experience rapid growth and the companies that have been successful in expanding their reach.
CBD Beverages
The CBD beverage market is projected to reach $1.4 billion by 2023, according to Zenith Global, making it one of the fastest-growing segments in the entire industry. With the rise of energy shots, vitamin waters and other functional beverages, consumers are increasingly looking for products that can help them achieve a goal and improve their wellness.
Innoviom has been an early pioneer in the development of CBD-infused beverages. After launching Wowie™, a CBD-infused relaxation beverage, the company unveiled Wowie™ Shots earlier this year to provide a more convenient format. Both products contain a unique blend of CBD and adaptogens to help the body cope with environmental stress factors.
Led by major beverage and consumer packaged goods executives, from companies like Coca-Cola, Diageo, Red Bull, Gillette, and PepsiCo, the company is uniquely qualified to drive growth across different emerging categories and markets. Accredited investors may want to learn more about the unique investment opportunity.
Click here to learn more about CBD beverage investment opportunities
“As consumers demand more of their food and beverage products, value-added consumer brands that deliver functionality, great taste, and consistent quality are the brands that are poised to deliver sustainable growth and deliver shareholder value,” says CEO Ahmed El Azizi. “At Innoviom, we not only have two such brands in the market, put our innovation pipeline that starts from ideation to implementation always has the consumer front and center in everything that we deliver.”
CBD Cosmetics
The global CBD skincare market was valued at over $600 million last year and is anticipated to reach more than $3.4 billion by 2026, according to Report Linker, representing a 24.8% compound annual growth rate. These products include CBD-enhanced oils, lotions, creams, masks, serums, soaps and other products sold across many distribution channels.
Some research suggests that CBD may possess unique anti-inflammatory and anti-acne properties that could help make skincare products more effective. In addition to its beauty properties, these products could also help with muscle pain and soreness for athletes or older adults that face chronic issues with pain just below the skin’s surface.
There are many different companies active in the CBD cosmetics industry, including well-known cannabis companies, like Cronos Group (CRON), and well-known beauty brands, like L’Oreal. Investors may want to diversify into some of these names to capitalize on CBD’s growth into massive ancillary markets where it could provide unique benefits.
Click here to learn more about CBD beverage investment opportunities
CBD Pharmaceuticals
Researchers are only starting to scratch the surface of CBD’s potential health benefits. Early-stage clinical trials suggest that there could be efficacy for treating everything from chronic pain to psychiatric disorders like generalized anxiety disorder. While more research is needed to draw definitive conclusions, investors may want to take the R&D leaders.
GW Pharmaceuticals plc (GWPH) is the most well-known company in the pharmaceutical side of the industry with approved CBD-based products for the treatment of Lennox-Gastaut syndrome or Dravet Syndrome. In addition, the company is pursuing approval for additional CBD and THC-based drugs treating a wide variety of conditions.
Of course, pharmaceutical companies have a much higher capital requirement to go through clinical trials. Failures at any stage of these clinical trials can be devastating to the stock price, as evidenced by Intec Pharmaceuticals’ (NTEC) 80%+ drop following its Phase III failure. The upshot is that approved drugs enjoy high margins and market exclusivity.
Looking Ahead
Investors interested in participating in the upside potential of CBD should consider companies that have built a presence in promising ancillary markets, such as beverages, cosmetics and pharmaceuticals. These areas are experiencing rapid growth and could have greater growth potential than hemp growers, extraction companies, and other mature plays.
For more information about Innoviom, download their investor presentation or visit their website.
Click here to learn more about CBD beverage investment opportunities
Disclaimer
The above article is sponsored content. CannabisFN.com and CFN Media, have been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: https://cannabisfn.com/legal-disclaimer/
This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.
About Ryan Allway
Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.
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