Mainstream CBD Acceptance Being Driven By Boomers And Millennials
Source Potstocknews.com
NEW YORK, May 7, 2019 /PRNewswire/ -- Sales of cannabidiol (CBD) oil are dramatically rising across North America, as its availability on mainstream shelves caters to growing health, wellness, and beauty markets. Much of this growth is being driven at two ends of the age spectrum, as hemp-based CBD is becoming more and more popular among both baby boomers and millennials. As the health benefits of CBD continue to be studied, the economic benefits are becoming apparent to the producers of CBD products including Chemistree Technology Inc. (CSE:CHM) (OTC:CHMJF), Aurora Cannabis Inc. (NYSE:ACB) (TSX:ACB), Canopy Growth Corporation (NYSE:CGC) (TSX:WEED), HEXO Corp. (NYSE:HEXO) (TSX:HEXO) and CannTrust Holdings Inc. (NYSE:CTST) (TSX:TRST).
The entire sector started to truly take off after the signing by President Donald Trump of the 2018 Farm Bill back in December. Following the bill's legalization of hemp farming nationwide, many companies much like Chemistree Technology Inc. (CSE:CHM) (OTC:CHMJF) have ramped up their CBD operations. Chemistree recently acquired a stake in The Physician's Choice CBD—developers of nine hemp-derived full spectrum CBD products.
Hemp-based CBD products are making their way to the forefront, including with the FDA, which is itself moving towards a loosening of CBD's regulatory shackles. The result has been a positive shift in the CBD hemp oil market, which data compiled by analysts at Transparency Market Research have indicated to project growth from $950 million in 2017 to $2.5 billion by 2026.
However, a new study by CBD Marketing in Chicago showed that the market has all but erased the generation gap, between baby boomers, Gen X, and millennials. The study analyzed 1.3 million US social media posts and other public comments between Jan. 1, 2018 to Jan. 1, 2019. At the two ends of the spectrum, baby boomers (54-72 y/o) and millennials (22-37 y/o) each generated 41% of the posts, while Gen Xers (38-53) represented 18%.
Both boomers and millennials are seeing prominent figures catering to their demographics in favor of CBD. For boomers, it was announcements such as Martha Stewart's endorsement deal with Canopy Growth Corporation (NYSE:CGC) (TSX:WEED), and legendary PGA golfer Greg Norman's brand coming out with its own CBD personal care products.
With millennials, it's news if Kim Kardashian throwing a CBD-themed baby shower, and American Horror Story star Emma Roberts posting on Instagram about her favorite products that include CBD-infused bath tonics.
Methods of delivery of CBD are numerous. Aurora Cannabis Inc. (NYSE:ACB) (TSX:ACB) saw its stock price rise nearly immediately after acquiring the remaining shares of Hempco Food and Fiber, further capitalizing on the CBD trend.
HEXO Corp. (NYSE:HEXO) (TSX:HEXO) went the beverage route through a major deal with major beer bottlers, Molson Coors in Canada. The company also hinted that it could launch its CBD-infused products in as many as eight stateswhere it believes they'll be legal. HEXO also markets its popular Elixir CBD MCT Oil Oral Spray, which presents a quick and convenient way to ingest CBD.
Also coming in convenient delivery forms is CannTrust Holdings Inc. (NYSE:CTST) (TSX:TRST) which recently released three new products: High Dose and Low Dose CBD Capsules, and High Dose CBD Drops.
Capturing the CBD Buzz on Social Media
Within the CBD Marketing study, what was discovered was how people talk about CBD, giving the market more insight on what's the most appealing among CBD's alleged benefits.
Over 280k posts talked about pain management, including chronic pain from cancer, inflammation, joint pain, etc. Another +250k posts focused on CBD's effect on stress relief, anxiety, insomnia, and general depression. When talking about mental health benefits, 90% of the posts about CBD's efficacy were positive.
There's also a growing amount of talk regarding CBD's role in health and beauty, with over approximately 140k posts, specifically talking about treating acne and other skin conditions such as eczema, rashes, psoriasis, slowing down aging, and reducing inflammation related to skin conditions. Lastly, there was a growing amount of talk regarding pet care and treatments, with roughly 100k posts about the subject.
All three groups had more than 86% positive responses in the posts, showing an overwhelmingly accepting crowd.
Leveraging Positive Medical Opinions
Of the two most talked about subjects, the Chemistree Technology Inc. (CSE:CHM) (OTC:CHMJF) stake acquisition of The Physician's Choice CBD brings products appealing to the top three CBD social media topics—pain management, stress relief/anxiety, and health and beauty.
The Physician's Choice CBD group has already developed a suite of nine full-spectrum, hemp-derived CBD products ranging from pain/inflammation management to sleep and wellness supplements. Helming the company are Dr. Julian Grove, MD, and Dr. Peter Kubitz, D.O. with over 15 years in private practice, with the first-hand experience in treating patients suffering from chronic pain. The integration of extensive physician clinical experience combined with exhaustive expertise in the cannabis industry has led to the creation of The Physicians Choice CBD brand.
"Managing various pain syndromes with medications that do not exacerbate severe medical conditions and behavioral risk factors is an ongoing challenge for medical professionals," said Dr. Grove. "This has been a driving force in the development of a product line of cannabidiol products, aiding in the management of specific pain syndromes and improve a sense of well-being."
In its first quarter of sales (ending in Jan. 2019), the company already booked $150,000 in sales.
"This investment in The Physician's Choice CBD is a great opportunity for Chemistree," said President of Chemistree, Karl Kottmeier. "Dr. Grove and Dr. Kubitz are board certified practicing physicians with training at Harvard and the Mayo Clinic, specializing in pain management. Their collective education and practical experience is industry-leading and their commitment to the health of their patients and to developing real solutions to pain management with cannabidiol-based supplements is truly inspiring. The investment we are making into PCCBD gives us exposure to an entirely new industry."
New Forms of CBD Delivery Methods
The market awaits the development of CBD-infused non-alcoholic beverages from companies like Canopy Growth Corporation (CGC) (WEED) and HEXO Corp. (HEXO), who have signed partnership deals with beverage giants Constellation Brands, Inc. and Molson Coors Brewing Company respectively.
However, Canopy has also branched out into pet care products, which likely will be launched in the near future, through a high-profile partnership with baby boomer celebrity icon Martha Stewart. HEXO has already established its CBD presence with conventional delivery methods, such as sprays and drops.
CannTrust Holdings Inc. (CTST) (TRST) is expanding its CBD product lines, with the addition of three new products, which include High Dose CBD Oil Capsules, a Low Dose version, and High Dose CBD drops. CannTrust also has planned a wide range of CBD-infused drinks, including Brewbudz, a single-serve cannabis-infused coffee and tea brewing pod technology, with a patent in North America and Australia.
Increasingly focusing more upon the medical marijuana community, Aurora Cannabis Inc. (ACB) has begun to turn its attention to hemp production. Hemp crops provide a low-cost source of CBD, once extracted, which Aurora has signaled it will pursue. The company has begun working with (and owns a stake in) soft-gel capsule producers Capcium. Aurora also flirted with a partnership with The Coca-Cola Company, before talks were officially ended. However, the talks showed a possible in-road for mainstream beverages from the company in the future.
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