Cannabinoids are increasingly being used as a means of supporting good health through cannabis health and wellness products.
By a number of metrics, we are becoming an increasingly health-conscious society. More and more people in western countries are exercising regularly and spending more on healthy organic food, while consciously avoiding foods that are detrimental to good health. This is all happening at a time when legal barriers preventing access to cannabis products are coming down and the cannabis-based product market is growing exponentially. As these two markets continue to grow, there is potential for cannabinoids to become an integral aspect of a healthy diet and lifestyle.
The global health and wellness market is projected to grow at a compound annual growth rate of 5.9 percent up to 2026, according to an August 2018 report by Research and Markets. As this market continues to grow, cannabis companies have an opportunity to capitalize on the trend by creating brands and products that appeal to consumers who want to use cannabis as part of their healthy lifestyles.
“There is a shift in the mindset of consumers. People don’t look forward to retirement anymore. Consumers want to enjoy life today and are always investing in longer and healthier lives,” Aurelio Useche, CEO of health and wellness-focused cannabis company Relevium Technologies (TSXV:RLV,OTCQB:RLLVF,FWB:6BX), told the Investing News Network (INN). Relevium has acquired several brands in the global cannabinoid health and wellness space, including Biocannabix, which produces nutraceutical and pharmaceutical cannabis products for the US and European markets, and Sleipnir Nutrition, which serves the superfood and skincare markets.
The cannabis health and wellness industry
Concurrently, the legal cannabis market continues to expand. According to data from Grand View Research, the global legal cannabis market is expected to reach US$66.3 billion by the end of 2025 at a compound annual growth rate of 23.9 percent. This growth is occurring as new markets continue to open up to the cannabis business.
The number of recreationally legal US states has grown to 11 and counting. Canada legalized recreational cannabis nationwide in 2018, and some of Europe’s largest economies, including Germany and Spain, have opened up medical cannabis markets. Legalization is spreading, and, as it spreads, there is more opportunity for all facets of the cannabis market, including cannabis-based health and wellness products.
As cannabis products become increasingly accessible, the perception of cannabis as an unhealthy smokable — often used in conjunction with junk food and long stretches of sitting around — has begun to fade. Smoking dried cannabis bud has been the default for decades, but this consumption method is quickly declining in popularity, while less harmful methods like vaporization and oral ingestion are on the rise. Furthermore, the effects of cannabinoids on the endocannabinoid system are becoming more widely understood.
“Cannabis has opened so many possibilities by introducing a new previously unknown set of receptors in our bodies as a source of stability in our health. There are many ‘unknowns’ about the endocannabinoid system and there is much to be discovered about the individual and combined roles of the 100 plus cannabinoids on our health,” Useche told INN.
Cannabis is now increasingly being seen as compatible with a healthy lifestyle. CBD products have become popular with athletes and regular gym goers as a means of alleviating post-workout joint pain and muscle stiffness, and companies like Phivida Holdings (CSE:VIDA) have designed CBD-infused sports drinks to serve this niche. CBD is also being utilized in topical skincare products to improve the look, health and feel of skin. The functional food and beverage industry is utilizing cannabinoids in products designed to improve cognition, state of mind and the immune system.
Companies like Koios Beverage (CSE:KBEV,OTC Pink:KBEVF) and Harvest One (TSXV:HVT,OTCQX:HRVOF) have released cannabinoid-infused beverages for the nootropic market. As the market develops and innovates, we are seeing an ever-widening range of cannabinoid products aimed at the health-conscious market.
Cannabis health and wellness products
North America leads the way in both the cannabis and health and wellness markets. The cannabis industry is poised for even further growth in the United States as Illinois, New Jersey and New York are expected to join the list of recreationally legal cannabis states and the 2018 US Farm Bill allows for hemp-derived CBD products to be distributed nationwide. Canada, meanwhile, is expanding its range of legalized cannabis products to include edible products by the end of 2019. These regulatory reforms are expected to ensure that cannabis health and wellness products have greater market reach in North America than anywhere else in the world. The market value of the overall health and wellness market in the United States is projected to hit over US$179 billion by 2020, according to data by Statista.
Europe is the second-largest market in the world for health and wellness products, and while no European nation has moved to fully legalize recreational cannabis, European medical cannabis markets present ample opportunity for cannabis-infused health and wellness products. Even with heavy restrictions on cannabis products, the European CBD market was estimated at US$318 million in 2018, and is expected to grow over 400 percent through 2023, according to data by the Brightfield Group.
The Asia Pacific health and wellness market trails North America and Europe in terms of current revenue, but it is also the fastest growing of the three. A growing middle class and rising rates of education are allowing more consumers to make informed decisions about their lifestyles and health. Thailand became the first Asian nation to legalize medical cannabis in late 2018, while recent headway has been made in surrounding countries. Australia is home to a thriving medical cannabis market that could be worth US$1.3 billion by 2028, while New Zealand legalized medical cannabis in 2018 and could legalize recreational use via referendum in 2020.
The health and wellness and legal cannabis markets are two of the fastest-growing spaces today. They also seem to be increasingly made for each other as we continue to discover new ways in which cannabinoids can be used to support a healthy lifestyle. As these two industries continue to grow, there is potential for cannabis-based health and wellness products to establish significant market share.
This INNSpired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
CanBud Distribution Corporation Closes 2M Second and Final Tranche of its Oversubscribed Private Placement Offering
CanBud Distribution Corporation (CSE: CBDX) (FSE: CD0) (“CanBud” or the “Corporation”) is pleased to announce that it has closed the final tranche of its oversubscribed non-brokered private placement for aggregate gross proceeds of approximately $4,730,000 (the “Offering”).
The Corporation issued a combined total of 39,409,346 units (each a “Unit“) at price of $0.12 per Unit, with each Unit comprised of one common share in the capital of the Corporation (each a “Common Share“) and one common share purchase warrant (each a “Warrant“). Each Warrant entitles the holder to purchase one additional Common Share at an exercise price of $0.22 within 24 months of the closing of the Offering (the “Warrant Term“), provided, however that if the closing price of the Common Shares on the Canadian Securities Exchange (the “CSE“) (or any such other stock exchange in Canada as the Common Shares may trade at the applicable time) is $0.25 or greater per Common Share for a period of five (5) consecutive trading days at any time after the closing date of the Offering, the Corporation may accelerate the Warrant Term such that the Warrants shall expire on the date which is 30 days following the date a press release is issued by the Corporation announcing the reduced warrant terms.
Thoughtful Brands Inc. (CSE:TBI)(FSE:1WZ1)(OTCQB:PEMTF) (the “Company” or “Thoughtful Brands) announces that the letter of intent with Franchise Cannabis Corp. (“FCC”), previously announced in January, has been terminated. The previously announced European joint venture with FCC will continue and allow the Company to launch and tailor its products to European consumer demands
In connection with termination of the merger transaction with FCC, the Company has agreed to pay FCC $100,000 in cash and to issue FCC 5,000,000 common shares of the Company at a deemed value of $0.05 per share. The common shares will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.
Mergers and acquisitions (M&A) in cannabis space have helped boost the industry to new levels.
Strategic sale of non-core assets by Lobe adds non-dilutive capital and shareholder value
Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) is pleased to announce, further to its press release dated February 23, 2021, that it has completed the sale to Ionic Brands Corp. (“Ionic Brands”) of Lobe’s non-core cannabis assets relating to Washington-based Cowlitz County Cannabis Cultivation Inc. (“Cowlitz”) held by Lobe’s subsidiary vendor, Green Star Biosciences Inc. (the “Transaction”).
Seattle Area Grocery Chain Metropolitan Market to Begin Carrying KOIOS and Fit Soda on March 22, 2021
Adding to its existing presence on the west coast of the United States, all five KOIOS™ flavours and all four Fit Soda™ flavours will be carried in Metropolitan Market stores beginning on Monday, March 22, 2021. Serving the Seattle-Tacoma area (population 3.87 million), Metropolitan Market is one of five chains under its parent firm Good Food Holdings, which has a total of 51 stores in California, Oregon, and Washington State.
Koios Beverage Corp. (CSE: KBEV; OTC: KBEVF) (the “Company” or “Koios”) is pleased to announce that beginning on Monday, March 22, 2021, Koios’ entire line of canned beverage products will be sold at all locations of Metropolitan Market, an urban format supermarket chain in the Seattle-Tacoma area of Washington State. In Q1 2021, the Company announced multiple placements of its beverage products with regional grocers in markets on the west coast of the United States including Market of Choice in Oregon Jensen’s in Southern California and major natural grocery chain Sprouts Farmers Market which has a substantial west coast presence with over one third of its locations (360+ stores across 23 states) in California as well as Washington State 1 . The Company has also recently announced other developments relating to its expansion efforts being undertaken in 2021 such as an in-house beverage canning facility and distribution agreements with regional and national wholesale partners.