Cannabidiol Market Size Passed $7 Billion In 2020, Estimated To Grow At Over 35% CAGR Between 2021 And 2027
PALM BEACH, Fla. – FinancialNewsMedia.com News Commentary – The CBD isolate market has been growing even before the pandemic appeared. While some areas of the healthcare sector remain to be impacted, the CBD sales have increased since the advent of the COVID-19 pandemic as restrictive movement and isolation largely impact the human body in several ways causing chronic pain and concerns surrounding mental health, among others. Further, several studies are also noted to remain underway to test the effectiveness of CBD-derived products against the lung damage caused by COVID-19. CBD isolate is a form of CBD, or cannabidiol, which is a chemical compound present in the cannabis plant. Unlike full-spectrum CBD products, CBD isolate does not contain any THC — the psychoactive component of cannabis. CBD isolate is a pure form of CBD. It contains no other cannabis plant compounds. It usually comes from hemp plants, which typically contain very low amounts of THC. A report from Global Market Insights said that Cannabidiol Market size surpassed USD 7.1 billion in 2020 and is estimated to grow at over 35% CAGR between 2021 and 2027. Supportive regulatory stance in majority of the countries paves way for the market expansion. Moreover, CBD has been found to be effective against numerous medical disorders such as chronic pain, neurological pain, anxiety, sleep disorder, as well as nausea and stress. Active companies in the markets this week include: CAN B CORP. (OTCQB: CANB), Tilray, Inc. (NASDAQ: TLRY) (TSX: TLRY), Canopy Growth Corporation (NASDAQ: CGC) (TSX: WEED), 22nd Century Group, Inc. (NASDAQ: XXII), Akerna (NASDAQ: KERN).
Global Market Insights said: “The rising prevalence of cancer leads to an increasing number of patients undergoing chemotherapy and increasingly experience nauseatic conditions. Also, as several people across the globe are noted to adopt a sedentary lifestyle, muscular disorders have also surged in the recent years. Cannabidiol products are noted to remain effective against these and are gaining popularity among patients… The chronic pain segment size is expected to reach USD 36.5 billion by 2027. A considerable demand has been observed from cannabidiol products in the recent years for pain treatment. This is largely due to the better results offered by cannabidiol products as well as its advantages over opioids. CBD is studied to have negligible trace of toxic compounds and minimal cases of side effects have been observed. Hemp-derived CBD products will register around 36% growth rate through 2027. This can be largely attributed to the smooth regulatory pathways developed for low THC levels. The THC content in hemp pants is negligible and developing 100% CBD-based products is possible, resulting in a higher market proportion.”
CAN B CORP. (OTCQB: CANB) BREAKING NEWS: Can B Corp. To Produce 13,000 Liters of Delta-8 And Other Isomers with Potential $10 Million Revenue – Newly acquired Colorado facilities will process isolate for Can B Products – Can B Corp. (“Can B” or the “Company”), a diversified health and wellness company, announced today plans to fulfill a new hemp processing agreements after securing hemp biomass and winterized crude to create over 13,000 Liters (1 Liter = 1.05 Quarts) of isomers, including Delta-8, with a potential wholesale value exceeding $10 million at today’s market price. The biomass Can-B has secured is harvested hemp that is the core ingredient to make hemp isolate which is the CBD component of Can B’s CBD tinctures, salves, gels, as well as its line of isomers such as Delta-8.
Hemp derived isomers are increasing rapidly in popularity as more hemp companies realize hemp-derived CBD can be used to create isomers such as CBN, CBC, and Delta 8. Can B believes it is on the cutting edge of Delta 8 production and it has the capacity to complete an increasing number of wholesale orders, as well as providing Delta 8 for its own retail products. Can B’s newly acquired facilities in Colorado will receive harvested hemp biomass and convert it to winterized crude. These same facilities will then process it to distillate, then to isolate which will be shipped to Company-owned facilities in Florida and Tennessee to produce Delta-8 or other isomers, or to its manufacturing facility in Lacey WA for its line of CBD tinctures, salves, gels, and drops. This entire process cycle is expected to take 5-6 months to monetize the revenue.
Marco Alfonsi, Can B’s Chief Executive Officer, commented, “This is a major milestone for our Company as we have completed our previously announced hemp isomer pipeline fulfillment. It’s an extremely attractive deal for us, especially from a cash flow perspective, as we were able to acquire the biomass in a restricted stock transaction valued at a $0.50 per pound basis. We then have a revenue split with the seller that will be calculated based on 70% of the post-processed value to the seller. At today’s market price, one million pounds of hemp biomass, that when full processed into Delta 8 isomer has a wholesale value of approximately $10 million.”
Other cannabis-related developments from around the markets include:
Tilray, Inc. (Nasdaq I TSX: TLRY), a global pioneer in medical cannabis research, cultivation, and production, recently announced the launch of medical cannabis edibles in THC and CBD-rich varieties of chocolates and soft chew gummies. The new Tilray-branded medical cannabis edibles are now available for patients across Canada and add to the brand’s comprehensive offering of cannabis medicines, including whole flower, oils, vapes, and pre-rolls developed with patient health and wellbeing in mind.
Irwin D. Simon, Tilray’s Chairman and Chief Executive Officer, said, “Whether it’s pain management, anxiety treatment, or everything in between, patients are asking for more choices in the medical cannabis category, and Tilray remains committed to the innovations that improve patient wellbeing. As cannabis regulations evolve around the world, we look forward to offering our global patient community the highest-quality medicines they depend on for health, wellness and wellbeing.”
STORZ & BICKEL GmbH (“STORZ & BICKEL”), a subsidiary of world-leading diversified cannabis, hemp, and vaporization company Canopy Growth Corporation (TSX: WEED) (NASDAQ: CGC), recently announced the release of three new vaporizer updates: the limited edition VOLCANO ONYX, the enhanced CRAFTY+, and the first-ever MIGHTY+. Engineered with cutting-edge technology, these enhancements to STORZ & BICKEL’s iconic portfolio demonstrate the brand’s continued leadership in the high-potential vaporizer industry.
“STORZ & BICKEL has spent the past 20 years developing the world’s most prestigious vaporizer models, consistently defining and refining the gold standard of consumer safety and best-in-class performance,” said Jürgen Bickel, Founder and Managing Director, STORZ & BICKEL.
22nd Century Group, Inc. (NASDAQ: XXII), a leading plant biotechnology and intellectual property company focused on improving health and wellness through plant science, recently announced entry into the global specialty hops market, its third and newest plant franchise. The Company released an update letter to shareholders from CEO James A. Mish describing its opportunities and plans in this market. The Company also posted an overview deck describing its entry into the hops market in the Investor Relations section of the corporate website.
Dear Fellow Shareholders, Following the exciting progress in our tobacco and hemp/cannabis franchises detailed on our second quarter results conference call earlier this month, I am proud to announce our third plant-based franchise – the global specialty hops market. Like our existing franchises, the hop plant market is ripe for disruption and offers opportunities for 22nd Century to provide unique and significant competitive advantages to commercial partners. The addition of hops, a critical input for the $500 billion global brewing industry as well as a growing source of medically-important molecules, expands our total addressable markets to an estimated $1.3 trillion.
Akerna (NASDAQ: KERN) recently announced it has signed an agreement to acquire 365 Cannabis, a cannabis business management software system built on Microsoft’s Dynamics 365 Business Central in a $17 million deal at 2.1x LTM revenue. The combined key capabilities of the acquisition are listed at the bottom of this announcement.
As a result of the acquisition, 365 Cannabis’ 85+ clients will gain access to Akerna’s Compliance Gateway, feature-rich reporting, MJ Retail POS, and the recently launched Akerna Connect. Akerna has partnered with SAP, Sage Intacct, and other leading providers for integrated financials and tax planning, offering cannabis operators a solution for each stage of their evolution – from startup to multistate operator (MSO) – while maintaining regulatory compliance every step of the way through Akerna’s Compliance Gateway. The acquisition of 365 Cannabis accelerates the deployment of this strategy with the addition of Microsoft capabilities, further establishing Akerna as the most robust cannabis-compliant ERP system offering a full portfolio of mainstream tax and financials.
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