Growing CBD market attracts mainstream companies

By Margaret Jackson

With the legalization of hemp production under the 2018 Farm Bill, some mainstream supplement companies are positioning themselves to get started in CBD-infused vitamin products – a market estimated at $ 1.64 billion in 2020 and expected to reach $ 1.64 billion by 2028 13, A report by Grand View Research is expected to reach US $ 9 billion.

While the Farm Bill did not legalize the extraction of cannabidiol (CBD) for infusion into food, beverages, and supplements, some mainstream vitamin and supplement manufacturers believe it is only a matter of time. Instead of waiting for the CBD supplements market to saturate, they are now tapping into their niches.

Photo by HenrikNorway / Getty Images

Many CBD companies also enlist the help of former professionals in the mainstream packaged goods stores to gain legitimacy. For example, Aurora Cannabis Inc. has appointed Nelson Peltz, Director of Procter & Gamble Co., as strategic advisor, and Los Angeles-based Ignite International Ltd. hired former P&G manager Curtis Hefferenan as global sales manager.

Hemp is a cannabis plant, but it differs from marijuana in that it cannot contain more than 0.3% THC – the compound in the plant that has been associated with going high. CBD can be obtained from both the hemp plant and the marijuana plant, which contains a higher concentration of THC.

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CBD is often sold on its own because it doesn’t induce the high that comes with THC. It’s available from many mainstream retailers, including grocery stores, pharmacies, and online. Many people believe it is an effective remedy for pain and other health conditions, including inflammation, multiple sclerosis, epilepsy, and Crohn’s disease.

As hemp CBD supplements grow in popularity, companies like Nevada-based Grove Inc. are keen to ensure that consumers recognize the benefits of the compound and incorporate it into their daily lives.

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Since its initial public offering (IPO) in June, Grove has embarked on a path that will make the company a leading manufacturer of CBD-infused hemp-based nutritional supplements. The Nevada-based company offered 2.2 million shares at $ 5 per share to raise approximately $ 11 million when it went public.

Photo by BATCH of Wisconsin Hemp Scientific via Unsplash

Grove will use the proceeds to purchase VitaMedica, an online nutritional supplement seller, to gain access to the global nutraceutical market.

The gummy vitamins market is estimated at $ 5.9 billion this year and is projected to grow to $ 10.6 billion by 2025, according to a recent report by ReportLinker, which highlights the rising incidence of vitamin deficiencies, malnutrition and the Growing demand for dietary supplements for on the go is attributed to taste.

The overall landscape of the market has developed rapidly. Innovative companies dedicated to the sector, like Grove, can be in a prime position to capitalize on rising demand along with long-term growth and maturity trends.

This article originally appeared on Benzinga and was republished with permission.