Hot or Hype? The CBD Market Overview

May 01, 2018

I know you have been thinking about it! Do I buy? Do I invest? Should we expand out product line? All very valid questions especially in early 2018! I will take you through what I learned at the Expo West CBD Summit about a month ago. And no, you are not alone! First of all the CBD Summit was an entire HALF DAY and it was PACKED- standing room only packed...the entire 4+ hours.

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Global Hemp comparisons; Canada & EU = miles ahead of the US; on the agricultural and regulatory side. Many US companies are seeking counsel from Canadian companies and beginning to mimic their processes in order to be prepared for when the legislation eventually turns over. Now let's go through some US sales!

No surprise here BIG numbers that are expected to more than double in less than 3 years. The hype is real! As far are sales are concerned. The interesting note here is the jump in Pharmaceutical sales due to the anticipated regulation change. This number in Canada is already present in 2016/2017 though not as high due to population.

We will take a deeper dive into the breakdown of channels where hemp in the US is being sold.

NOTE: The 14% of Natural Retail Sales from 2017 breaks down as follows: 87% Supplements, 12% Topical, 1% Food. These numbers will all shift in the next couple of years with the market moving toward consumable products and mass market.

Biggest takeaways:

Canadian CBD Market and the major acquisitions recently (Canopy growth>mettrum originals, Aphria>Kalytera, Aurora>Hempco, etc)

BIGS making moves (BIG Tobacco, BIG Alcohol, BIG Pharma)

Things to watch in 2018/2019 = Senate Bill, Epidiolex to market, HIA Hoban Law vs DEA, Farm Bill 2018

What does all this mean? There is growing US Leadership Support, FDA/DEA/Court are taking actions, Sec. 7606 could be updated/amended? All of these current items are pressing the movement forward in terms of regulations for legalization and adding structure to the industry in the US. Here is Canada, we are all anxiously awaiting July 1st for our next steps! (and the next BIG moves)

Stay tuned! I will be happy to provide an update as I am keeping my eyes peeled and ready to Regulate!

Check us out!

Feel free to get in touch anytime to ask questions! kpaul@naturalscireg.ca



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