(This article originally appeared in CBD Journal and is reprinted here with permission.)
Chalk it up to advances in medical research, a more health-conscious populace, or slicker branding and marketing campaigns, but hemp extracts like CBD have quickly gained root as health products in the mind of the public.
According to the online website Born2Invest, the heart of this new movement is in California, the cradle of health and wellness, where CBD is big business in the ever-expanding lifestyle sector. Catering to busy executives, on-the-go moms, and the millennial startup crowd, marketers of CBD products not only expanded the market but created an entirely new demographic that currently appears limitless in its bounds.
A Different Kind Of Customer
Perhaps CBD’s most significant contribution is having brought the larger cannabis community out from the shadows and into the mainstream, making it acceptable for the professional classes to partake and enjoy its wellness benefits.
Lacking in THC, CBD gives users all the benefits of smoking marijuana without the psychotropic high. The New Yorker recently wrote of a high-end cocktail party where guests mingled while imbibing CBD infused cocktails; a scene unheard of only ten years prior.
According to Born2Invest, Brightfield Group recently wrote a report claiming that the CBD market will hit $1 billion by 2020. The website goes on to argue that the wellness community has a significant role to play in CBD’s growing market share. As an example, Born2Invest looked at the state of Texas, where CBD is classified as an essential oil which gives the product legal status.
Retailers in the state sell it in droves without fear of the law coming down on them.
A New Kind of Lifestyle Brand
While CBD is popping up everywhere among the health and wellness crowd, making its way east from California, one company is embracing its new role as a wellness product. PotNetwork Holdings (POTN), through their subsidiary Diamond CBD, markets its rich line of all-natural industrial hemp CBD oils and vapes directly to this new demographic. Along the way, company revenues exploded to $14.5 million in 2017 - almost double their forecasts for the year.
For example, the company’s Meds Biotech brand, available as gummies, oils, and capsules, is specially designed for the health and wellness crowd. It is a pharmacist-formulated line of CBD products that have found success in the lifestyle sector. Consumers see the product as they do their daily vitamins or any other supplement found in the local pharmacy; a sign of both the quality of CBD and the power of branding.
It is a sign of the times that the cannabis industry gave way to the fortunes of the CBD industry; that health and wellness are a prime focus of the sector. Companies with the foresight to see beyond cannabis and dig into the lifestyle crowd are poised to make huge profits with CBD in the coming years.