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    Features

    MarketWatch: CBD Edibles & Topicals Expected to Gain Share of Cannabis Market

    News and insight into cannabis-derived health, wellness, and beauty products.

    MarketWatch: CBD Edibles & Topicals Expected to Gain Share of Cannabis Market
    MarketWatch: CBD Edibles & Topicals Expected to Gain Share of Cannabis Market
    MarketWatch: CBD Edibles & Topicals Expected to Gain Share of Cannabis Market
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    04.10.20
    U.S. retail sales of cannabis and CBD products reached $14 billion in 2019, and are on pace to increase 18% a year to $33 billion in 2024, according to data published in “Cannabis and CBD: U.S. Retail Market Trends and Opportunities,” a report by market research firm Packaged Facts.  

    Cannabis products can be segmented by delivery format—i.e., the method by which the product’s desired compounds are ingested. The most common delivery format, flower—smoked in the form of buds or pre-rolled cigarettes—accounts for nearly 40% of retail sales.

    Another smokable product, vaporizer cartridges with concentrated THC or CBD compounds, comprises the second largest share. However, this share is declining as concerns about vaping-related lung illnesses rise and as states increasingly restrict sales of both nicotine- and cannabis-infused vaping products.

    The fastest annual gains are projected for those delivery formats—namely edibles and topicals—that stand to benefit the most from the easing of federal restrictions on hemp and cannabis. Major retailers—including foodservice establishments in certain states—are increasingly offering CBD-infused food, beverages, cosmetics and toiletries that appeal to consumers because these products have the therapeutic benefits of CBD without the psychological effects of THC.

    Other major delivery formats include tinctures, pills and capsules, and ingestible oils, which are used for both marijuana- and hemp-based products. Ingestible oils made from hemp seed oil (which does not include CBD or THC) have been available for decades and are used by health-conscious consumers for their purported nutritional benefits.


    CBD Skin Care Market Value Could Reach $959 Million by 2024

    CBD skin care market sales are projected to reach $959 million by 2024, according to cannabis market intelligence and strategic consultancy firm Prohibition Partners in its report, “The Impact Series: Disrupting Beauty.”

    The report explains that cannabis, with its antioxidant and anti-inflammatory effects, is disrupting the traditional beauty market and supply chain as consumer demand skyrockets for innovative natural cosmetics products. Key findings of the report include:

    • Smaller indie brands have driven recent developments in the CBD beauty market, as multinational companies remain wary of CBD’s complicated legal status. 
    • The global CBD skin care market is projected to reach $959 million by 2024.
    • Select brands are exploiting the interest surrounding cannabis-derived CBD oils to sell beauty products containing low-CBD hemp seed oil, in a practice known as “weed washing.” 
    • Continued consumer education will be vital to ensuring the longevity of the CBD beauty market.

    “Cannabis and CBD are rapidly being integrated into a wide spectrum of mainstream consumer products, being used in everything from pet food to skin care,” noted Prohibition Partners Managing Director Stephen Murphy. “Thus far, the disruption we’ve seen in the beauty industry is nothing short of remarkable, attracting attention from high-street retailers, global brands, and indie entrepreneurs. Consumers are looking for new and exciting products derived from natural and sustainable sources and cannabis continues to fit this mold, driving product demand through the roof.”

    He added: “There are constant questions on the longevity of this trend but with the ability to act as a natural anti-inflammatory agent and an antioxidant, cannabis is becoming one of the most disruptive forces in the beauty and personal care industry in the last two decades.”


    Ranking Reasons for CBD Use

    ConsumerLab.com’s 2020 Trends and Preferences survey of 9,782 dietary supplement users found that 14.5% of respondents (1,273 total) purchased CBD in 2019. The survey asked those participants the reasons for their CBD use, and whether they believed that CBD worked for those intended purposes. (Participants were able to list more than one use in their responses.)

    While companies claim a plethora of health benefits of CBD supplementation, CBD trends mostly followed broader themes related to consumer health and wellness demands in the supplement industry overall.

    Pain reduction topped the charts compared to any other reason for use, with 67.3% of respondents indicating this benefit. The magnitude of pain reduction usage was among older individuals.

    Another 45.4% of respondents indicated that they used CBD for sleep; 37.5% of respondents said they use CBD to reduce anxiety, and the magnitude of anxiety reduction usage was seen in younger users. Additionally, 20.3% of users indicated using CBD to reduce depression/improve mood; 9% gave CBD to their pet; 8.6% used it as part of a cancer treatment; 2% used CBD for colds or flu; and 0.8% used CBD to lessen symptoms of Parkinson’s disease.

    Only about half (53.3%) of the CBD users ConsumerLab.com surveyed thought that CBD worked for them; 11.7% of users said no, and 35% said that they were unsure. Of those who gave CBD to their pets, 63.5% believed that it worked. Those who used it for this purpose were the most likely to believe it worked, compared to those who ingested it themselves for any other purpose.


    CBD Gummies Market Expected to Grow 28% from 2019-2029

    Low-concentrate CBD gummies have been estimated to be the largest segment of product types, accounting for close to 90% of market share, but demand for high concentration CBD gummies is largely rising from the healthcare sector. The global CBD gummies market is expected to grow at a CAGR of 28% from 2019 to 2029, according to a report from Fact.MR. Rising consumer interest in edible cannabis options is a major factor that is supporting market growth.

    The global industry is largely fragmented with a number of small and medium scale enterprises operating in the industry. Most of these companies are located within Canada, and a number of small-scale businesses are also opening up in the U.S. Governments are pushing to legalize marijuana in a bid to shut down the black market and bolster revenue from legal sales. Key takeaways from the study include:

    • In terms of the fast-growing European CBD gummies market, the U.K. is projected to display the fastest rate of growth, owing to the recent legalization of cannabis for recreational and medical use. Legalization has also resulted in North America becoming the largest regional market for CBD gummies.
    • The segment of high-concentration CBD gummies products is expected to witness a higher rate of growth during the forecast period owing to applications in ailments such as schizophrenia, glaucoma and sleep disorders among others. Low-concentration CBD gummies are projected to remain the largest segment, with demand from newcomers.
    • Longer lasting effects of CBD gummies in comparison with smoking cannabis is another key factor promoting demand, and generating a perception of health benefits with the product.
    • Consumers are more inclined to visit offline channels of distribution such as dispensaries, smoke shops, pharmacies, and health stores, owing to the perception of purchasing authentic and good quality products. However, convenience factors are driving the use of online alternatives, especially among regular consumers.

    “It is expected that within a few years, more states in the U.S. are likely to legalize the consumption of CBD either for medicinal or recreational purposes. Such trends of legalization are likely to boost the demand for CBD in the country,” the report said.

    There is growing demand for alternatives to smoking cannabis. Rising consumer interest in cannabis-based edibles and other concentrated CBD products is supporting market growth, as consumers continue to seek alternatives to smoking, which is a key factor in driving demand for gummies. Primarily driven by Millennials, CBD gummies are incrementally expected to replace other consumable variants including confectioneries, chocolates, and cookies, among others.


    ChromaDex Introduces Line of Cannabinoid Reference Standards

    ChromaDex Corp. has expanded its reference standards business with a new line of cannabinoid (CBD) reference standards available to researchers worldwide.

    These new materials are for laboratory use only, not for human consumption.

    “In the CBD space, we see an abundance of misinformation and a dearth of quality standards testing,” said Rob Fried, ChromaDex CEO and member of the Board of Directors of the Council for Responsible Nutrition. “ChromaDex has been a leader in standards testing for over 20 years, and we look forward to helping bring some scientific integrity to those interested in CBD.”

    Reference standards are used as benchmarks or markers to confirm the identity and potency of products. ChromaDex provides phytochemical reference standards, botanical reference materials, and research grade materials for the natural products industry with over 1,750 phytochemicals and 400 botanical reference materials in its catalog.

    The company added two cannabinoid reference standards, cannabidiol (CBD) and cannabidivarin (CBD-V), derived from hemp for laboratory use in the identification and qualification of hemp and CBD ingredients or products.

    “We support the establishment of a safe limit of CBD for consumers,” noted ChromaDex Co-Founder & Executive Chairman Frank Jaksch. “Our tools will help researchers and companies develop quality products that match label claims.”


    Delbia Do Distributes CBD

    Delbia Do Company, Inc., a leading manufacturer of fragrances and flavors, as well as a USDA Organic Certified Producer and Handler, will be the exclusive distributor of Kentucky BioScience International (KBio) hemp cannabidiol (CBD) products for use in personal care and cosmetics.

    The company has signed an exclusive distribution agreement with KBio, a domestic producer of CBD products with headquarters and processing plant in Bowling Green, KY, as well as farming networks in Kentucky and Virginia. KBio produces pure CBD ingredients deliverable in winterized crude, full spectrum distillate and isolate powder.

    “We’re excited about working with Delbia Do Company to provide the purest CBD ingredients for use in personal care and cosmetics,” said KBio CEO Robert Huttick. “Together, our companies are focused on providing pharmaceutical grade, all-natural ingredients to millions of sophisticated consumers.”


    Sytheon Launches Asyntra CBD-Alt

    Specialty cosmetic and personal care ingredient company, Sytheon, recently launched Asyntra CBD-Alt, a patent-pending product that acts synergistically with CBD and hemp oil found in cosmetic products, and is known to amplify its attributes. CBD-Alt can also be used alone. The product is designed to reduce the loss of anandamide, a fatty acid neurotransmitter that activates certain receptors of the endocannabinoid system which are present in skin.

    By inhibiting the fatty acid amide hydrolase (FAAH) enzyme, which degrades anandamide, researchers believe that it is possible to elevate anandamide levels for therapeutic use. In preliminary research, anandamide plays a role in mood enhancement. It is found in chocolate and other organic matter.

    Like many other cannabinoids, anandamide is believed to have an “entourage effect” when used simultaneously with CBD oil. “The innovations that enable progress also include new methods of understanding,” Sytheon said in a statement. “Sometimes the biggest impact comes from understanding the mechanism and coming up with an improved system, which allows us to reach our target faster.”


    Centerchem Debuts Water-Dispersible CBD

    Centerchem has introduced CBD-TEX 5, a water-based encapsulated micro-dispersion of 5% CBD that is water dispersible. The ingredient allows CBD to become part of any aqueous formulation, creating a milk- or serum-like consistency the company said is easy to handle.

    The hemp seed oil is rich in proteins, lecithin, vitamins, minerals and essential fatty acids, including linoleic acid (omega-6) and alpha-linolenic acid (omega-3). The hemp is also GMO-free and certified organic.


    Prinova Partners with Open Book Extracts To Launch Water-Soluble CBD Ingredients 

    North Carolina-based ingredient, flavor, and nutrient premix specialist Prinova has partnered with CBD manufacturer Open Book Extracts. The deal will allow the companies to launch HydroBond CBD, a line of water-soluble CBD ingredients supplied by Open Book Extracts, which will be developed and processed in-house at Prinova. The two companies will collaborate in future product development and formulation of solutions for consumer products containing CBD, and use HydroBond CBD in both liquid solution and ready-to-mix powder applications.

    Prinova cited specific benefits that HydroBond CBD offers compared to traditional ingredient forms, including effective blending, a neutral taste, and traceable, “clean-label” components. The patent-pending formula utilizes açacia fiber as its sole carrier.


    Botanical Origins Launches CBD for Personal Care

    Anail Mitra and Jay Basu, the co-founders of 13-year-old ingredient supplier From Nature With Love, announced a new CBD venture, Botanical Origins (Oxford, CT), which will feature both broad-spectrum CBD and CBD isolate for use in personal care products with a variety of cosmetic and topical formulations. Products are THC-free, and they are grown, produced, and lab-tested in the U.S. The company will also offer custom blending services, allowing a client to choose a premium quality blending oil into which the CBD will be blended up to a maximum of 25% concentration. The company offers certified organic vegetable oils, some of which have nutritional benefits, as well as conventional vegetable oils.


    Hoffmann Neopac Debuts RecyCan Packaging

    Hoffmann, a global provider of high-quality packaging for a range of industries and applications, is introducing a line of tinplate cans comprised of 100% recycled steel this spring. Made possible by collecting separated consumer packaging steel from standard household recycling, the company’s RecyCan portfolio essentially closes the loop on sustainability through packaging that is not only completely recycled but also perpetually recyclable.

    All tinplate cans contain some recycled steel. At the inception of the RecyCan process, typical household steel, such as used cans, closures and crown corks are collected for recycling. After steel elements are separated from aluminum and plastic packaging via magnet, they are shredded and detinned before being pressed into cubes. They are then melted down to raw steel and cast into slabs. The slabs are hot-rolled, cold-rolled and tin-plated to produce packaging steel, which can be printed and formed into fresh new tinplate packaging cans.

    Ideal as packaging for a variety of premium organic and specialty products, Hoffmann’s RecyCan tins are available as three-piece, two-piece or deep-draw cans that protect against light, air/oxygen, and moisture. In addition to being fully recycled and recyclable, the circular packaging solutions offer a host of other eco-friendly benefits, including the savings of raw materials.

    “In Europe, North America and other major markets, metal tins are synonymous with sustainability as they are recycled in well-established recycling streams,” said Mark Aegler, CEO of Hoffmann Neopac AG. “The RecyCan line of products takes eco-consciousness to the next level by achieving full circularity—completely recycled products that can continue to be recycled. And of course, these environmental benefits are achieved without sacrificing product protection or branding aesthetics.” 



    Amyris’ CBD Topical Carrier Exponentially Improves Absorption

    Study explores the skin penetration rate of CBD in Neossance Squalane compared to jojoba oil, sunflower oil, MCTs, and hemp seed oil.

    Amyris, a company specializing in health and wellness, beauty, flavors and fragrances, presented clinical results suggesting that its natural sugarcane squalene product, Neossance squalane, is a superior carrier of CBD versus other oils for topical applications.

    According to new data, Amyris sugarcane squalene improves the efficacy of CBD by 10 to 40 times its counterpart carriers.

    The study, conducted by the Cosmos Technical Center, explored the skin penetration rate of CBD in Neossance squalane versus jojoba oil, sunflower oil, medium-chain triglycerides (MCTs), and hemp seed oil into human skin.

    According to the study, other oils tend to rest on the surface of the skin along with some of the CBD being carried, or clog skin pores without delivering a sufficient quantity of CBD to the epidermis of the skin, where cannabinoid receptors are. Additionally, Neossance squalane also provides moisturizing, brightening and wrinkle reduction benefits.

    The cannabinoid industry has long been concerned about the quality and compliance of delivery applications for CBD topicals.

    Amyris is developing CBD through fermentation technology and believes it will be the first company to provide pure and efficacious CBD from this technology at commercial scale. The ability to provide both high quality CBD, and what the study suggested is the best performing carrier, will provide consumers with greater choice and product effectiveness, Amyris said.

    Amyris has filed a patent application seeking to give it proprietary rights over the use of squalene to deliver cannabinoids including CBD topically.

    “We are very pleased with the breakthrough results from our clinical studies,” Apprinova President Caroline Hadfield said. “This is a great example of how clean ingredients made from our science platform and naturally sourced from sugarcane combined with our scientific approach to formulations can lead to disruption in key markets. We are very excited to deliver what consumers are seeking and support the brands that are committed to delivering high efficacy and sustainability at an accessible value for consumers.”



    Most Canadians Consume or Expressed Interest in Trying Cannabis

    Sixty-two percent of all cannabis users reported they take it to relax, while 54% use it to relieve stress or anxiety.

    Approximately six in 10 Canadians are either current cannabis users, or are interested in trying it, according to a consumer survey from Mintel; 27% of all Canadians surveyed reported that they used cannabis within the first six months of its legalization, and 32% of all non-users of cannabis reported that they were open to trying it.

    Edibles garnered the most intrigue from non-users entertaining the prospect of trying cannabis. Forty eight percent of these potential users said they were most intrigued by edibles, with percentages consistent across three age brackets. Overall, 66% of non-users said they were open to trying ingestible (edible or drinkable) cannabis. 

    Mintel senior research analyst Scott Stewart said that the rising tide of cannabis could carry some other boats especially well.

    “After just one year, the effects of this industry are far reaching,” Stewart said, “from food and drink to insurance and tourism and more—and additional markets will begin to experience the ripple effects of the legalization of cannabis this year.”

    Nearly half of Canadian cannabis consumers use it for recreational purposes. Still, a greater percentage of users reported that their consumption had to do with health and wellness purposes; 62% of all cannabis users reported that they use it to relax, while 54% use it to relieve stress or anxiety. Meanwhile, 42% attributed their use to improved sleep, and 39% said they use it to improve their mood.

    That health and wellness appeal applies to open non-users as well, as 42% of non-users would consider using cannabis to relieve pain, and 25% would consider it for the sleep benefits.

    Lack of education was a prominent reason why open non-users said they were hesitating to try cannabis. Over a third of non-users listed the smell and the smoke as barriers, while 28% listed health concerns as a barrier. Only 41% of open non-users reported feeling knowledgeable about how to consume cannabis.

    “In addition to edibles and drinkables that do not involve smell or smoke, two of the main complaints cannabis non-users have about the product, devices like vaporizers or vape pens, which create a vapor instead of smoke, serve to minimize these unwanted byproducts,” Stewart said. “Our research shows that many Canadians view cannabis as a very complex and intimidating product and the lack of understanding leads many to avoid it entirely.”

    Mintel reported that video game brands, food companies, and the tourism industry can all benefit from legalized cannabis, especially with the right marketing.

    One quarter of cannabis users surveyed consume it while playing video games, and 38% of those user-gamers do so to enhance their gaming experience. Not only are 36% of cannabis users interested in cannabis-themed vacations, but 44% of travelers want to try something they’ve never done before, and 27% want to leave their comfort zone while traveling.

    Additionally, food companies might be able to capitalize on the fact that 83% of cannabis users report bigger appetites while using.
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    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    Preliminary Study Links Markers of Impaired Bone Health to Vegan Diet
    Refined Grains Linked to Heart Attack Risk, Early Death
    Kappa Bioscience Extends Research Partnership For COVID-19 Research
    Coatings World

    Latest Breaking News From Coatings World

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    Latest Breaking News From Medical Product Outsourcing

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    Latest Breaking News From Contract Pharma

    Spark Therapeutics Appoints CTO
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    Beauty Packaging

    Latest Breaking News From Beauty Packaging

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    Latest Breaking News From Happi

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    Ink World

    Latest Breaking News From Ink World

    Etiflex Enters New Markets with Nilpeter FA-22 Installation
    Hydrocarbon Solvents Market to Surpass $8.1 Billion by 2030
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    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    FTA converts Forum & INFOFLEX to virtual events
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    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    Texas Medical Technology Partners with My Protect Kit
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    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    Fusion Robotics Receives FDA Clearance for Spinal Navigation and Robotics System
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    First Implantation of CTL Amedica's Minimally Invasive Flex Tower
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    Comercial Kywi Improves Customer Service, Front-Store Operations with Zebra Mobile Solution
    Global Printed Circuit Board Market Projected to Reach $69.32 Billion by 2027
    Global Smart Glass Market to Register 6.8% CAGR Between 2021-28: Grand View Research

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