Hemp-Derived CBD Company to Benefit From Multiple Industry Trends

The cannabis industry is growing worldwide and cannabidiol (CBD) is a huge part of its success. In the U.S., the most positive estimates predict that the hemp-derived CBD market alone could reach $22 billion by 2022. This expected growth will be spurred, in part, by the legalization of hemp-derived CBD via the 2018 Farm Bill. The growing interest in natural healthcare products combined with awareness of CBD as such a product will also be a huge contributing factor. One company, PotNetwork Holdings, is positioned to greatly benefit from these trends with multiple companies and diverse brands focused on CBD.

CBD market expected to grow dramatically

Market estimates for CBD have traditionally maxed out in the low billions. For example, one study predicts a market of $1.15 billion for both hemp and marijuana-derived CBD by 2020. However, CBD and cannabis industry research group Brightfield Group more recently released a report estimating that the U.S. market for hemp-derived CBD alone would hit $22 billion by 2022. This staggering estimate caught many by surprise but Brightfield Group is standing behind its prediction.

Brightfield Group representative Bethany Gomez explained how they came up with this figure, stating, “We have interviewed hundreds of people in the industry, surveyed thousands of consumers, conducted market analysis across literally millions of data points.” She described her research team as “highly conservative analysts” and, based on their findings, considers their estimate to also be “conservative.”

Gomez also pointed out that she has covered consumer markets for over a decade and has “never seen anything like the explosion that we’re seeing right now in CBD” even given that fact that it operated, at the time she wrote, in a “bizarre legal gray area.” Gomez finds the interest remarkable given that, prior to the passage of the 2018 Farm Bill, CBD was publicized largely by word-of-mouth. She contributes its amazing spread both to a recognition that it addresses a wide range of health issues and that it has also become a “trendy, new ingredient” for products seeking to differentiate themselves in the market. Based on everything she has seen and everything her research team uncovered, she maintains that “CBD is the next healthcare phenomenon.”

Factors in the growth of the CBD market

Though CBD derived from marijuana is also expected to grow, hemp-derived CBD’s expected growth will be driven by both legal and health-related concerns. The legal aspect is fairly straightforward. The 2018 Farm Bill legalized hemp and hemp-derived CBD products nationwide. However, the process of both federal and state regulation is still unfolding which does throw significant uncertainty into the works. Nevertheless, the time for hemp-derived CBD is now.

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While the Farm Bill helped publicize CBD, announcements of new partnerships with celebrities like Martha Stewart have taken CBD excitement to another level since the Brightfield Group report was released. But the underlying cause of this excitement and the interest of figures like Stewart is driven by the growing recognition of CBD’s status as a health product. While the research looks promising, it is the anecdotal reports of phenomenal cures and relief from such conditions as pain and inflammation that is driving interest.

Both globally and in the U.S., the health and wellness trend has been growing for many years. Consumers are turning to a wide range of products and practices to take responsibility for their own healthcare. Supplements, alternative beauty products and yoga classes are some of the areas in which massive growth has been seen prior to the CBD trend. In fact, just as health and wellness can now be said to be more than a trend, interest in CBD seems most likely to be here to stay.

Emerging Diversified Cannabis Company

One cannabis industry company expected to maximize benefits from the CBD craze is PotNetwork Holdings Inc. PotNetwork Holdings wholly owns multiple CBD companies and brands. The company’s portfolio includes other sectors of the growing cannabis industry as well but hemp-derived CBD is its strong point. From CBD research and production firm First Capital Venture to retailer Diamond CBD, PotNetwork Holdings has a strong base in CBD product creation and distribution. But it also has a wide range of individual products addressing all relevant sectors from adult health and beauty to pet care.

Hemp-derived CBD brands from PotNetwork Holdings are distributed both through Diamond CBD’s ecommerce operation and through a network of over 10,000 third-party retail locations. The combination gives PotNetwork Holdings full national distribution at a time when the whole nation is becoming aware of CBD.

In a detailed report from Harbinger Research, POTN is deemed a Strong Speculative Buy for multiple reasons, including the 2018 Farm Bill, PotNetwork Holdings’ diverse portfolio of brands and its strong initiatives for 2019.