The Supplement Industry Is Booming
1:45 am EDT 8/26/2020
Unless you’ve been away to outer space, there’s a good chance you’ve heard about cannabidiol (or CBD, as it’s colloquially known). Of course, you may have no idea of exactly what CBD is, what it’s used for or why CBD-based have become a hot topic around the world… still, the point remains.
More brands are now looking towards the CBD industry, mainly because of the relatively bigger profit margins on sales of CBD-based products. Unsurprisingly, healthcare retailers like CVS Health, Walgreens Boots Alliance and Rite Aid are leading the pack.
CVS Health now sells CBD-infused topicals in 800 stores across eight US states, and Walgreens Boots Alliance similarly offers a range of CBD alternative care products (namely creams, patches and sprays) in 1500 select stores across nine states.
Big skincare and cosmetic brands like Saint Jane, Kiehl’s and Josie Maran Cosmetics have also launched a range of CBD-infused beauty products. According to a recent report from Technavio, the CBD skincare market is projected to grow by $1.64 billion during 2020-2024, at a compound annual growth rate (CAGR) of over 33% during the same period. The CBD Skincare Market Analysis Report cites CBD’s immense benefits in skincare as a key driver for market growth, which suggests that it isn’t just a beauty fad.
Of course, the food industry is not left out, with CBD-based food brands such as Recess and Two Roots Brewing Co. increasing in number every day. Due to the many therapeutic uses of CBD, the compound is now found in various beverages and food products like teas, cold coffees, milkshakes, gummies (especially!), chocolate bars, doughnuts to name a few. Many restaurants in the United States have introduced CBD-infused foods such as brownies, sauces, cookies, salads, pizza, butter, ricotta and semifreddo.
Strange as it may seem, you can now CBD products for your four-legged friends to help them reduce feelings of anxiety, pain and stress by maintaining optimal levels of hormones like cortisol and adrenaline.
As it stands, everyone wants to tap into a lucrative CBD market with great growth potential — well, who wouldn’t?
Still, what exactly is CBD and why has the CBD industry experienced massive growth in recent years?
CBD 101
CBD, short for cannabidiol, is a health-oriented cannabinoid out of at least a hundred compounds found in cannabis plants (i.e., hemp and marijuana). Now, before you go off assuming the worst, CBD oil is made from cannabinoids extracted from hemp.
From the many phytocannabinoids derived from cannabis plants, CBD and tetrahydrocannabinol (THC) remain the two products getting the most attention. However, both natural compounds are fundamentally different from each other.
THC is a psychoactive cannabinoid usually found in high amounts in marijuana. THC is infamous for its psychoactive effects, delivering intense feelings of euphoria when marijuana is consumed.
In contrast, CBD doesn’t present with any intoxicating and high-inducing effects when it’s used. This is because it’s derived from hemp, a cannabis plant with high concentrations of CBD and trace amounts of THC. Interestingly, CBD oil has been shown to have less than a 0.3% concentration of tetrahydrocannabinol, which makes it a non-psychoactive compound.
Surely this makes you wonder, “if CBD isn’t a psychoactive substance, why then are CBD-based products gaining popularity all over the world?”
Short answer: THC mainly acts on the central nervous system while CBD has been proven to boost the endocannabinoid system.
Thanks to its anti-inflammatory, antioxidant, anti-anxiety and antioxidant properties, CBD has numerous health benefits believed by researchers to help with conditions characterized by pain, anxiety, inflammation and seizures. CBD oil is particularly used by people suffering from anxiety, depression, chronic pain, insomnia, inflammation, epilepsy etc.
Bad Press and Effects of the 2018 US Farm Bill
No doubt, cannabis consumption as a recreational drug has helped grow the cannabis industry to a market worth several billion dollars today. And while it would be almost criminal to deny this, the industry has equally suffered from a negative reputation due to the addictive effects of marijuana and not CBD.
The stigma surrounding CBD started can be traced back to 1971 when Richard Nixon declared war on drugs in the United States, famously branding drugs “America’s public enemy number one”. There was little research on cannabis at the time, and since CBD was a cannabis derivative, it was lumped in with illegal drugs like heroin, crack cocaine and LSD.
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However, with new research on CBD coming to light in recent years, the balance is rapidly shifting towards safer, healthier ways of using cannabis products. A recent report from the World Health Organization states “CBD exhibits no effects indicative of any abuse or dependence potential.” Numerous other studies have similarly proven the safety and health benefits of CBD.
In 2018, the second US Farm Bill was passed, serving as a major catalyst for the ‘CBD boom’ after supporting research cleared up the huge misconception — and bad press, thankfully — surrounding cannabinol.
The CBD industry has been on a roll since the bill was passed; hemp cultivation was legalized and cannabinol was no longer in the list of controlled substances. Now, the world is becoming increasingly aware of the relative safety and therapeutic benefits of cannabidiol, which has influenced more and more people to buy CBD-based products without minding the cost.
More than that, the continued efforts of The Emerald Corp, a GMP-certified company in the CBD industry has had an overall positive effect on the public opinion of CBD. Emerald Corp is the leading white-label manufacturer and private labeler of CBD products in the United States.
At The Emerald Corp, we provide high-quality private labeling and co-packing solutions for our clients. This is achieved through a vast selection of carefully tested products sourced from organic ingredients and made naturally for quality. We bring years of research and experience to a fast-growing industry, and what’s more?
We offer a seamless turnkey process; we can be fully or partially involved (as needed) helping you launch and build a successful brand. We are with you every step of the way, doing everything possible to ensure your brand thrives in the CBD industry.
CBD Industry Growth in Numbers
At present, CDB demand is very high, particularly in the health and skin care industries. According to the Grand View Research, the legal marijuana industry is projected to reach a global market value of $73.6 billion by 2027. In 2018, the global CBD market was valued at $4.6 billion and is expected to grow at a 22.2% CAGR from 2019 to 2025.
Based on recent studies, cannabis (alongside CBD products) is more popular for its medicinal uses than recreational purposes. In 2019 alone, sales of medical cannabis products accounted for 71% of industry revenue, while recreational marijuana settled for a measly 29%.
From these numbers, it’s clear the CBD industry is booming — and will continue to — with Emerald Corp as its leader. This growth trend will only continue further up, as more research points to the therapeutic benefits of cannabis, leading to the growing use of CBD-based healthcare products.
The food and healthcare industries are known for an astonishingly high level of quality, and this couldn’t be any more true for the CBD market; with the utmost confidence, we pride ourselves on offering GMP-backed Quality Control on all our products.
As per our cGMP protocol, every product leaving our facility is tested throughout all the three production phases (i.e., raw, in-process and finished), using multiple independent tests to ensure our products are in the green for potency, heavy metals, pesticides, insecticides, herbicides, microbes, fungi, etc. In addition, we offer full traceability of our products from seed to sale.
Finally, the introduction of clear regulations and government approvals of the use of cannabis products for medical, beauty and recreational use will equally be a major driver for the continued boom of the CBD industry.
Due to our unique position as an industry leader, Emerald Corp remains conscious of the shaky regulatory framework in the CBD industry. As such, we’re committed to ensuring your brand and — especially! — products stay fully compliant with existing and pending FDA regulations.
By partnering with us at The Emerald Corp, you’ll build a successful brand tapping into the massive potential of the CBD industry for years to come.
