Rising Consumer Spending on CBD-infused Products Fueling Big Profits in Billion Dollar Industry
PALM BEACH, Fla. , Oct. 14, 2021 /PRNewswire/ -- The last two decades have seen a great deal of progress in global legalization and regulation of cannabis, both for medical and recreational use. Nowadays, the demand for cannabis is expected to increase significantly from the arrival of cannabis-infused products. The growth of the overall CBD-infused products market is backed by the rising demand and increasing legalization of cannabis, growing application of cannabis in cancer, and health benefits offered by cannabis-infused products. Moreover, the usage of cannabis in pet food and the increasing demand for cannabis-infused drinks provide significant opportunities in this market. However, the high cost associated with CBD and stringent government regulations against cannabis in certain countries obstructs the growth of this market to some extent. A report from Meticulous Research projected that the CBD-infused products market is expected to grow at a CAGR of 45.6% from 2021 to 2028 to reach $216.8 billion by 2028. The report said, "The COVID-19 pandemic has severely impacted many economies around the globe. As a measure to control the spread of this disease and avoid its associated consequences, governments across the globe announced partial or complete lockdowns, majorly impacting many industries, but the cannabis industry is having a breakthrough moment. Since it is beneficial for COVID-19 respiratory effects, thus state and local governments are gradually accepting the value and benefits of medicinal cannabis. Thus, this factor is expected to boost the demand for CBD-infused products." Active Companies in the cannabis industry include Grove, Inc. (NASDAQ: GRVI), Trulieve Cannabis Corp. (OTCQX: TCNNF) (CSE: TRUL), Curaleaf Holdings, Inc . (OTCQX: CURLF) (CSE: CURA), Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON), Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB).
Meticulous Research continued, "Moreover, during this pandemic, CBD-infused products have become an attractive option for people spending more time at home, both as a means of entertainment and to reduce stress and anxiety. As a result, CBD-infused product sales are soaring, ultimately driving the growth of the CBD-infused products market. Also, legalizing recreational cannabis in various countries, escalating demand for CBD-infused wellness drinks, increasing disposable income of the consumers, and improving living standards are the few factors responsible for the high growth of this market during the forecast period."
Grove, Inc. (NASDAQ: GRVI) BREAKING NEWS : Grove Inc. Launches Amazon Aggregation Division - Upexi Unit Created to Acquire and Scale Promising Ecommerce Businesses - Grove, Inc. ("Grove" or the "Company"), a global innovator in hemp, health, and wellness, today announced the launch of Upexi , its wholly owned division to acquire promising Amazon and Ecommerce businesses.
Since 2020, funding has poured into Amazon aggregators, raising nearly $10 billion according to Marketplace Pulse. Investors are racing to fund these companies whose goals are to buy promising Amazon brands that buyers believe can be scaled. According to Marketplace Pulse, "The market had a breakout year in 2020 because of three factors: the pandemic accelerating spending on Amazon, Thrasio raising hundreds of millions of dollars, and Anker, an Amazon-native brand, going public." According to Bloomberg , Thrasio, having raised more than $2 billion , could see its IPO valued at more than $10 billion .
With the launch of Upexi, Grove intends to take direct aim at the Amazon Aggregation market. Grove plans to enter the market as a desirable suitor to which prospective business owners may sell. With Upexi, potential sellers will be able to access Grove's programmatic ad technology, in-house digital marketing experts, and direct partnership with a team of expert Amazon PPC buyers who fine tune listings or start from scratch.
Grove Inc. has made a name for itself in the CBD/cannabis space and has already begun expanding into other verticals. The company recently acquired Vitamedica, an online nutraceutical company, with a rapidly growing presence in ecommerce and Amazon. Through its in-house team of digital marketers, Grove is now pursuing more companies in health/wellness/beauty/pet care that they can take to the next level.
Grove's hemp business has fueled its growth up until this point, reporting 2021 fiscal year revenues, with key financial highlights:
- $24.1 Million , a 250% Increase Over 2020
- �"�"Net Earnings of $2.9 Million or $0.25 Per Share�"
- 4th Quarter revenues of $10.64 million a 361% growth over prior year quarter
- Revenue guidance of $48 - $55M for 2022
Grove CEO, Allan Marshall , weighed in on the expansion into the brand aggregator space, "We've seen exponential growth in our hemp business over the past 2 years and continue to grow. It's now afforded us the ability to expand into other verticals. Amazon aggregation has been a goal for us since the beginning. We're hoping to add 10+ Amazon and Ecommerce businesses to the portfolio over the next year, and another 10 the following. We want to reward people for what they've done and give them the ability to see their brand grow under Grove. In many cases, we hope to attract the Amazon/ecommerce experts behind these brands and continue to add talent to our team." CONTINUED… For more information about Grove, Inc, please visit https://groveinc.io/investor-relations/ .
Other recent developments in the CBD/Cannabis industry include:
Trulieve Cannabis Corp. (OTCQX: TCNNF) (CSE: TRUL), the largest multi-state operator (MSO) in the United States , recently announced the reopening of four dispensaries formerly branded as Harvest House of Cannabis in Jacksonville, Gainesville, Kissimmee, and West Palm Beach, Florida . The locations join the Company's 94 medical marijuana dispensaries statewide.
The reopenings follow the Company's October 1, 2021 announcement of its closing the acquisition of Harvest Health and Recreation Inc., at which time all Harvest locations in Florida were closed for rebranding to Trulieve. The Company will continue to reopen locations in Floridathroughout the month of October.
Curaleaf Holdings, Inc. (OTCQX: CURLF) (CSE: CURA), a leading international provider of consumer products in cannabis, has recently expanded its suite of innovative products with the addition of Select Snooze Bites, which are rolling out in several markets across the US this fall. Through the combined power of THC:CBN, this fast-acting platform is a true disruptor as an efficacious nighttime product.
Designed for the perfect wind-down, Snooze Bites combine a unique 1:1 ratio of fast-acting THC and long-lasting CBN. The scientifically developed formula incorporates 5mg of nano-encapsulated THC, which is made by creating tiny, water-soluble molecules from cannabis oil and is therefore quickly absorbed into the bloodstream with effects typically experienced within 15 to 30 minutes. When paired together with 5mg of CBN - a cannabinoid typically known for its relaxing and restorative qualities - users can expect a heightened combined experience.
Cronos Group, Inc. (NASDAQ: CRON) (TSX: CRON), an innovative global cannabinoid company, and Ginkgo Bioworks ("Ginkgo"), which is building the leading horizontal platform for cell programming, recently announced the achievement of the first target productivity milestone in their partnership to produce eight cultured cannabinoids. Ginkgo, which recently announced a business combination with Soaring Eagle Acquisition Corp. (NASDAQ: SRNG), serves customers across industries seeking to develop new and better products using biology. Using Ginkgo's platform for organism design and development, Cronos Group has successfully achieved the productivity target for cannabigerolic acid (CBGA), which will support the Cronos Group's planned CBG product launch this fall.
Launched in 2018 with the goal of accessing rare molecules in the cannabis plant in order to create innovative and differentiated products that would otherwise be cost-prohibitive, the partnership between Cronos Group and Ginkgo aims to develop eight molecules. The program convenes Cronos Group's deep understanding of the biological structure and function of cannabinoids with Ginkgo's unparalleled experience designing microorganisms for the production of cultured products across pharmaceuticals, agriculture and more.
Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), the Canadian company defining the future of cannabinoids worldwide, has recently launched Bidiol, the first medical cannabis oil in Uruguay that is wholly produced domestically. The CBD oil is available in 3% and 10% concentrations and comes in 10mL and 30mL bottles, available in pharmacies across the country.
"The launch of Bidiol has been two years in the making and is an integral part of our renewed strategy in Uruguay," said Miguel Martin, Chief Executive Officer of Aurora Cannabis. "We have prioritized key international markets with the potential to meaningfully expand their patient base. Our efforts include working alongside governments and local partners to do what works best in each market. There isn't a one size fits all strategy – our approach must be smart and domestically relevant."
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