3 Ways to Invest in the Burgeoning CBD Market
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.
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.
“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.”
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.
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.
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.
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: http://www.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.
Follow Us on Social Media
About CFN Media Group
CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.