CBD Gummies Are Causing A National Buzz…
…But Not In The Way You Are Thinking
CBD is a non-psychoactive cannabinoid that is found in cannabis sativa. It belongs to the class of more than 60 compounds that are found in the hemp plant, known as cannabinoids. Several studies have shown that CBD has numerous health benefits. These include acting as an antioxidant, anti-inflammatory agent, anticonvulsant, anxiolytic, antiemetic, and antipsychotic agent. That means CBD is a potential medicine for various medical conditions including oxidative injury, neuro-inflammation, vomiting, nausea, schizophrenia, anxiety, and epilepsy among others. Scientists have discovered that though CBD affects both CB1 and CB2 receptors, it doesn’t cause mind-altering effects like THC. That’s why they encourage the use of CBD to treat multiple medical conditions.
Why are People Interested in Selling CBD?
Researchers are rapidly making new discoveries about the amazing abilities of CBD. Being non-psychoactive, CBD does not cause the euphoria that is associated with other cannabinoids like THC. That means CBD can be used at relatively high doses without causing the undesired psychological effects.
People are interested in selling CBD due to its surging popularity as a cannabinoid that does not cause euphoria. This combined with its incredible medical properties that make it a powerful anti-depressant, sleep aid, muscle relaxant, anti-proliferative, anti-inflammatory, and a sedative agent makes CBD a bestseller.
Does CBD Have Good Market Potential?
According to The Hemp Business Journal, CBD market is expected to undergo an exponential growth in the coming years. Market experts predict that CBD consumer sales will garner $2.1 billion by 2020. This includes the $450 million from the hemp-based sources. Last year, CBD market produced about $202 million. If this market hits the expected growth rate, it will have undergone an unprecedented growth.
However, other experts like Matt Karnes from Greenwave Advisors consider this prediction as being understated. They predict that the market will hit a $3 billion target by 2021. That’s because currently, only some states have legalized CBD-only products. And, the surge of CBD use in the medical fields will definitely expand its legalization. The discovery and awareness of the health benefits of CBD will attract even non-medical users. This will grow its market further due to increased labeling and marketing of CBD products.
Headset Research reports that there is evidence to prove that even traditional users of marijuana are ready to try CBD. The firm shows that the market is projected to grow by bounds and leaps. Currently, the marketplace has more than 800 CBD products and the numbers are increasing. Outco, one of the largest Southern California cannabis cultivators has established that 38% of non-users and users are interested in learning more about CBD. Clearly, these statistics depict a market with a promising growth potential.
Is There a Good Return on Investment?
The answer is definitely YES. That’s because the market has good projections. In 2013 for instance, customers paid $1.25 for an mg of CBD while buying less. However, prices have now plunged to as low as 2.5 cents per mg but customers are buying more. Thus, though there has been a reduction in the price of CBD, there has been an increase in customer counts. That means retailers are selling more and getting increased profits from large sales volumes.
Market Saturation with CBD Products and CBD Manufacturers
The increasing CBD approval by scientists, researchers, some medical practitioners, and the public has led to a continued increase in the number of CBD products in the market and CBD manufacturers. This combined with the fact that this industry is among the fastest growing sectors has attracted many manufacturers. For instance, marijuana index has more than doubled over the last year compared to 24% for S&P 500 index. This has attracted more investors into the manufacture of CBD and pushing for the legalization of cannabis.
Additionally, there are many CBD products in the current market. This overwhelms some consumers when it comes to buying CBD products. And, though scientists and researchers suggest that CBD can improve a wide range of health problems, many manufacturers are not taking the initiatives to substantiate the claims. Thus, some products have labels that are shallow on details and this makes it difficult for consumers to make informed decisions.
With the increasing competition in this industry, every CBD company is trying to stand out as a superior brand in the industry. One company that stands out is, Medical Marijuana Inc (PINK: MJNA)
Medical Marijuana provides medical marijuana solutions to businesses and hemp companies. These include cannabis testing as well as CBD products like chewing gums. MJNA’s portfolio is quite diverse. Its stock is currently up to 456% compared to last year.
10 Successful CBD Companies Globally
According to analysts at the Viridian Capital Advisors, a group of Wall Street analysts, the following were the most successful CBD companies in the world as of December 21, 2016:
- CW Pharmaceuticals- This firm leads in the cannabinoid-based medicine with a market cap of $2.87 billion and stock price change of +64%.
- Canopy Growth- This is a diversified cannabis firm based in Toronto with a market cap of $780.6 million and stock price change of +192%.
- Insys Therapeutics- This firm had 2 cannabis-based drugs with FDA approval by 2016. It had a market cap of $664.6 million and stock change of -68%.
- Aurora cannabis- Trading on the Toronto’s venture exchange, the market cap of this Canadian firm stood at $433.8 million with a stock price change of +311%.
- Axim Biotechnologies- This firm develops CBD-based treatments. Its market cap stood at $401.6 with a stock price change of +656%.
- Medical Marijuana- This firm specializes in the development, sale, and distribution of hemp oil. Its market cap stood at $380.1 million in 2016 with a stock price change of +281%.
- Corbus Pharmaceuticals- This clinical-stage pharmaceutical firm had a market cap of $375.5 million and stock price change of +410%.
- Aphria Inc- Trading on Canada’s venture exchange, the company had a market cap of $373.6 million and stock price change of +286%.
- Arena Pharmaceuticals- This is a bio-pharma company. Its market cap stood at $340.6 million in 2016 with a stock price change of +286%.
- Cara Therapeutics- This is also a bio-pharma company at the clinical stage. Its market cap stood at $251 million in 2016 with a stock price change of -43%.
Latest United States FDA/Government Regulations and Laws on CBD
There has been no major change in the law or regulation of CBD since the announcement that the DEA made in December 2016, which declared CBD a Schedule 1 Substance. When a substance is labeled as a schedule 1, it means that it has a high abuse potential and it can cause severe physical or psychological dependence.
In reality, the government has a confusing stance on CBD. The reason for the word “confusing” is because the Controlled Substances Act does not define CBD clearly. The confusion thickens because 5.5 months ago (today is May 17, 2017) the DEA declares CBD as a Schedule 1 substance yet, CBD is being sold nationwide and is considered legal in all 50 states. There is simply no clear law established to illegalize them. On the other hand, Brazil approved CBD use as a treatment for epilepsy but the CBD prescription is restricted to neurologists and psychiatrists in the country.