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Does a drop in CBD sales signal dwindling consumer interest, or is it a classic ‘crossing the chasm’ moment?

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Still, other players see long-term potential for CBD – once it crosses the divide – but argue that it’s best for supplements, like gums and tinctures, rather than food, with a cutout for some drinks.

According to data presented at the Natural Products Expo West virtual fair at the end of last month, sales of CBD dietary supplements fell 6% in 2020, which is a significant turn due to the double-digit increase in sales in 2019, which is even more noteworthy given that Overall 14% increase in sales of dietary supplements, partly borne by consumers looking for products to boost their immunity, manage stress and, among other things, promote relaxation during the pandemic.

For groceries, SPINS data showed a similar trend in the 52 weeks ending April 18, 2021, with sales declining 11% in shelf-stable functional beverages containing CBD, which was repeated as an ingredient across all categories, according to SPINS marketing data analyst Scott Dicker. recalibrated to find his new baseline “after a period of intense hype.

This recalibration doesn’t seem to have any impact on other ingredients touted for similar benefits, which the SPINS data shows they saw double- and even triple-digit sales gains in 2020. For example, SPINS reports that Ashwagandha sales increased 117% to 65 million 47% to $ 6 million in 2020.

At the same time, CBD sales and prices fell, according to a comprehensive study by Leafreport of major CBD brands. The report found that 70% of brands cut their prices in 2020 and that CBD prices fell 17% in 2020, from 15 cents to 13 cents per mg in 2020.

Some CBD players turn around

With this in mind, some suppliers of CBD-soaked beverages changed their strategies – either they dropped products with the ingredient or rounded off their offerings with CBD-free offers.

For example, Kombucha leader GT’s Living Foods recently withdrew its CBD-enriched Dream Catcher functional drink for a variety of reasons, including regulatory uncertainty about the ingredient in foods and beverages and consumer confusion about the ingredient’s benefits.

VYBES, which sells a range of CBD fortified beverages and supplements, launched its first line of beverages without the ingredient earlier this month. The company’s sparkling Adaptogenic Elixir line is based on other ingredients like Ashwagandha, Rhodiola, and L-Theanine to promote relaxation.

What is behind the sudden, significant drop in sales?

The dramatic drop in sales of CBD-infused products is not easily attributed to an event or factor, but rather to a combination of regulatory uncertainty, poor quality control, too much initial hype and unrealistic consumer expectations, said Nancy Whiteman, CEO of Wana Wellness, which sells CBD gums and tinctures as dietary supplements, and Wana Brands, which sells THC-infused products through a separate store.

She stated that while several states allow the sale of CBD-infused foods, beverages, and edible supplements, the FDA continues to stand by its original decision that CBD is not a legal food ingredient since it was first studied as a drug.

Because of this, many large retailers don’t allow CBD foods, beverages, and supplements on their store shelves – limiting the ingredient’s reach to some natural grocers, retailers, or online in states that allow the ingredient – and ability Being restricted by SPINS will track the ingredient’s full sales volume as its data is limited to brick and mortar, Whiteman said.

Unrealistic consumer expectations

A lack of federal regulations also meant a lack of standards around product quality and claims – both of which could have contributed to poor consumer experiences early in the CBD product launch, according to Whiteman.

“Companies have touted benefits that I think have created unrealistic expectations of what CBD can do. Well, I think CBD is an amazing cannabinoid, and I think it has wonderful benefits, but it’s not a magic bullet, “and some consumers” have been disappointed with the results based on some of these claims, “said Whiteman.

Other companies rushed to market without first devising methods for consistently extracting high quality CBD oil or determining effective dosages, creating frustration and disappointment for some early adopters who did not find the miraculous results they would see added her.

The form factor

Whiteman also theorized that sales of CBD in some food and beverage segments may have declined in 2020 because the shape was naturally sorted out to determine the best delivery platform for the ingredient.

She stated in the initial excitement about CBD that it was added to all types of foods and beverages, some of which did not allow for consistent, effective dosing.

“Shortly after the legalization of CBD, the hamburger chain Carl’s Jr. launched a CBD burger that is a silly way of taking an essentially herbal drug. It’s inefficient and expensive, and no one is going to say I get my daily burger with CBD, ”said Whiteman. “Well, I think for CBD the product form has to be sorted out.”

As Wana Wellness’s use of gums and tinctures to deliver CBD suggests, Whiteman believes these formats are the best options because the dosage is easy to control and consumers are not tempted to overeat.

“Gummies are an ideal form because many people are used to taking their vitamins in a rubbery form and are content with just eating one dose or the appropriate dose and then quitting. We’re not sitting there eating a bottle of vitamins, and we shouldn’t be eating a bottle of CBD gums, ”she said.

While Whiteman doesn’t sell CBD fortified beverages, she agreed that functional beverages are also a good format for the ingredient, as they tend to be “sedentary” and have “special rituals around” that require more careful dosage control and enable consistent delivery.

The expanded access to THC encroaches on pure CBD sales

Finally, sales of pure CBD products may have declined as more states have legalized THC since the 2018 Farm Bill opened the door to CBD – giving many consumers more options for their intended needs.

“The reality is that CBD products work better when they have a little THC in them – not enough to feel the psychoactivity, but it does seem to activate the CBD. So now people can potentially buy more effective products through legal channels such as pharmacies or home deliveries and no longer need CBD foods and beverages, she said.

However, she believes that there will always be some demand for pure CBD as many consumers do not want THC in any way.

“A classic … to cross the abyss”

Despite the many challenges CBD is currently facing, Whiteman believes the ingredient still has significant market and sales potential once it is clearly regulated and consumers better understand what it can and cannot do and how best to use it .

“We shouldn’t interpret this pullback to mean that CBD is not a viable product category or an effective category. I don’t interpret it as either of those things. Rather, I think it’s a classic way of crossing the abyss, “said Whiteman, referring to Geoffrey Moore’s theory that innovations that are successful with early adopters still have to” bridge a gap “before the early ones Majority or mainstream consumers are ready to try or use it consistently.

“Education and research will be the catalyst moving CBD from early adoption to mainstream consumption,” and this is where industry players devoted to the ingredient should pay their attention in the near future, she added.

CBD

Kansas farmers struggling to sell hemp for industrial purposes

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PRATT – This summer marks the third year Kansans has been growing hemp for industrial purposes.

However, growing the plant’s less sexy cousin, associated with climbing high and some medicinal uses, has proven riskier and more difficult than many farmers originally anticipated.

As a result, the number of licenses issued this year is less than half of what the state saw in 2020.

“There has been some misunderstanding about ease of marketability,” said Braden Hoch, the state director of the industrial hemp program.

More:Will hemp be a boon for farmers? Kansas reports say it’s too early to tell

A farm’s risk is exacerbated by an ever-changing set of state and federal regulations. And now some hemp growers and processors want more help from the government to reduce risk and encourage innovation.

Shining Star Hemp Co. is one of only 11 licensed hemp processors in the state.

Outside the industrial building near Pratt Municipal Airport in south-central Kansas where Shining Star operates are rows of 1,200-pound sacks of industrial hemp stems, grains and flowers.

Inside, workers break open the sacks and toss them onto a large conveyor belt that leads to a cacophony of machines that shake, blow, and sift the biomass into its usable parts.

The company is one of the few successful companies in the state.

“It was a lot of work, lots of phone calls to build relationships and find synergies,” said Jennifer Holmes, who works with Shining Star to develop and market products. “But to be honest, I can say at this point that we are great for our position.”

Complex process that is holding back the hemp industry

Paul McGeary developed Shining Star’s system for converting the hemp crop into something that the industry can use.

“It’s probably about 30 years of banging your head against the wall, mostly,” he said.

McGeary is a contractor for Shining Star. He has worked in the agricultural processing world for most of his life and applied what he learned over decades of sieving wheat and corn to develop this machine for sieving hemp.

He said the complexity of the process is part of what is holding the industry back. It just isn’t the size to cater to manufacturers who would use the fiber.

“We went to these meetings thinking that having £ 30,000 to £ 40,000 on hand was something. But when you get into the industry and they want five wagons a day or a trainload a week, we’re just not prepared for that, ”he said. “And making them wait until we are prepared is the bottleneck of the whole thing.”

More:The demand for hemp fiber is growing as manufacturers consider an untapped market

Hemp has been hyped as something with a wide variety of industrial uses. The stem can be made from paper or biodegradable plastics. The seeds can be processed into food. And the flowers can be pressed to extract oils.

But so far the only market the industry is pushing seems to be for their cannabinoid-rich or CBD oil. And there is already a deluge of CBD on the market.

“We’re not very lucky to sell full-spectrum oil,” said Holmes. “It’s just something that we all have to work through and do the right thing and get into the grain and fiber industry.”

But that’s going to cost millions of dollars in investments in new equipment.

Until this equipment can be designed, built, or purchased, companies interested in making products from hemp fiber are out of luck. A company in Newton wants to make limbs out of hemp. It imports its processed hemp from overseas.

The licenses for hemp cultivation will decrease in 2021

Holmes wants more government aid to offset some of the risk of investing in converting the facility into something useful for industry.

“A lot of people are scared to start because they don’t know if they’re going to fail, so they never start,” she said.

The Kansas Department of Agriculture says its hemp growing licenses have dropped from 218 in 2020 to just 81 this year.

And last year, of the nearly 4,000 hectares that were planted, only 761 were harvested for production.

An eighth of it had to be burned by the state because it contained too much of the psychoactive chemical THC.

“The last two years have really helped individuals stay up to date,” said Hoch. “But producers still determine how hemp can best be grown as a useful crop and incorporated into their crop rotation.”

He said growers and processors need to expand beyond CBD products, but as federal and state regulations for harvesting are constantly changing, finding the right investors to embrace this kind of innovation and development will remain difficult can drive forward.

Brian Grimmett reports on the environment, energy and natural resources for SMBs in Wichita and the Kansas News Service.

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Europe CBD Oil Market Report 2021-2026

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According to the latest IMARC Group report entitled “European CBD Oil Market: Industry trends, share, size, growth, opportunities and forecast 2021-2026,“The European CBD oil market will grow at a CAGR of around 23% over the period 2021-2026.

Cannabidiol (CBD) is a non-psychoactive compound made from resins, leaves, and flowers of the marijuana or hemp plant. To make CBD oil, cannabidiol is extracted from the cannabis plant and diluted with a carrier oil such as coconut oil. CBD oil is high in amino acids, iron, fiber, zinc, etc. In addition to having a relieving effect on depression, anxiety, insomnia, seizures, etc., the oil is also used to relieve pain, improve heart health, relieve cancer . related symptoms, acne treatment, etc.

Like the novel Coronavirus (COVID-19) When the crisis has conquered the world, we continuously monitor changes in the markets and the behavior of consumers in the industry worldwide, and our estimates of the latest market trends and forecasts are made taking into account the effects of this pandemic.

CBD Oil Market Trends in Europe:

The increasing legalization of cannabidiol in several European countries is primarily driving the market for CBD oil. In addition, the increasing prevalence of various neurological and psychiatric disorders is also catalyzing product demand for treating such disorders. Accordingly, CBD oil infused supplements are increasingly being used in cancer treatment to minimize the side effects of chemotherapy such as weight loss, nausea, fatigue, etc. In addition, the advancing pharmaceutical industry and the increasing use of bioactive ingredients in medicines will continue to support product demand. In addition, the increasing use of CBD oil in cosmetics and personal care products is expected to further strengthen the European CBD oil market in the coming years due to its anti-inflammatory and anti-aging properties.

Request a free sample report: https://www.imarcgroup.com/europe-cbd-oil-market/requestsample

European CBD Oil Market 2021-2026 Analysis and Segmentation:

Competitive landscape:

The competitive landscape of the market has been studied in the report with the detailed profiles of the major players operating in the market.

Aurora Cannabis, Diamond CBD Inc., ENDOCA, APHRIA Inc., ConnOils LLC, Elixinol Global Limited, Emblem CANNABIS, NuLeaf Naturals, LLC, CBD Ultra Limited and The Original Alternative Limited.

The report has segmented the market by region, disc type, material type and end-user.

Distribution according to source:

  • Marijuana based
  • Based on hemp

breakup from Product Type:

breakup from Product category:

breakup from application:

  • food and drinks
  • personal hygiene
  • Health care
  • Nutraceuticals
  • Other

breakup from Distribution channel:

Distribution by country:

  • Germany
  • Spain
  • Italy
  • France
  • United Kingdom
  • Russia
  • Rest of Europe

Ask the analyst about customization and explore the full report with table of contents and list of figures: https://www.imarcgroup.com/europe-cbd-oil-market

Main highlights of the report:

  • Market performance (2015-2020)
  • Market Outlook (2021-2026)
  • Porter’s Five Forces Analysis
  • Market drivers and success factors
  • SWOT analysis
  • Value chain
  • Comprehensive mapping of the competitive landscape

If you need specific information that is not currently included in the scope of the report, we can provide it to you as part of the customization.

When you need the latest primary and secondary data (2021-2026) with cost module, business strategy, sales channel, etc. Click Request Free Sample Report, the published report will be emailed to you in PDF format within 24-48 hours of receipt in full payment.

about us

The IMARC Group is a leading market research company offering management strategy and market research worldwide. We work with clients in all sectors and regions to identify their most valuable opportunities, address their key challenges, and transform their businesses.

IMARC’s information products encompass key market, scientific, economic and technological developments for business leaders in pharmaceutical, industrial and high technology companies. Market forecasts and industry analyzes for biotechnology, advanced materials, pharmaceuticals, food & beverage, travel & tourism, nanotechnology and innovative processing methods are at the forefront of the company’s expertise.

Contact us:

IMARC group
30 N Gould St Ste R
Sheridan, WY 82801 USA – Wyoming
Email: Sales@imarcgroup.com
Telephone: (D) +91 120 433 0800
America: – +1 631 791 1145 | Africa and Europe: – + 44-702-409-7331 | Asia: + 91-120-433-0800, + 91-120-433-0800

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CBDistillery™ Sets Aside Thousands Of Products To Advance The Efficacy of Hemp-Derived Wellness Products

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DENVER, June 17, 2021 / PRNewswire / – CBDistillery ™, one of the country’s leading CBD brands, is partnering with Releaf App ™, the top-rated application for individuals to track, learn from, and improve their use of cannabis and CBD Learn more about customers’ reported on the use and effectiveness of CBDstillery ™ products. CBDistillery ™ aims to be the leading educational resource and “one-stop shop” for consumers interested in hemp-derived CBD, CBG and CBN products. To provide educational resources and personalized data insights to their customers, CBDistillery ™, in partnership with Releaf App ™, is giving away thousands of free CBD products to people who sign up for private studies called Pathfinder Missions ™.

CBDistillery ™ plans to announce up to eight unique Pathfinder Missions ™ in 2021 using Releaf App ™ technologies, which are mobile and web-based applications used by brands to collect data on the usage and performance of Collect cannabis and CBD products. The first CBDistillery ™ PathFinder Mission ™ is available to eligible participants on. ready to register March 23. Participants will answer a series of questions twice a week for 60 consecutive days to measure their dosage and overall experience with CBDistillery ™ products.

Eligible participants will receive two free CBDistillery ™ products – a 1000 mg CBD isolate oil and a 1000 mg broad-spectrum CBD oil. During the first 30 days of the PathFinder Mission ™, individuals will answer questions about their use and experience with the isolate-based product. They will then switch the product they use and answer questions from the past 30 days about their use and experience with the Broad Spectrum product. All individuals who complete the PathFinder Mission ™ will receive an exclusive offer from CBDistillery ™.

CBDistillery ™ and Releaf App ™ are currently enrolling individuals upon first arrival, up to 500 eligible participants. Click here or visit releaf.at/cbdistillerystress to learn more, sign up, and determine your eligibility.

“At Balanced Health Botanicals, we invest in improving the effectiveness of hemp-derived wellness products through dynamic, research-based partnerships. In doing so, we empower and equip consumers with validated and objective data on CBD, CBG and CBN products that will help “The brand wins trust and loyalty in a very competitive industry,” says Tony Schwartz, Director of Associated and Strategic Partnerships. “We are excited to be working with the Releaf App team as it has uniquely established itself as a lean research service provider with exceptional customer service. The opportunity to work with Releaf App as a technology and data provider to identify groundbreaking insights is exciting for everyone at the table. “

“CBD brands often struggle to gather real-time, data-driven product insights from their customers. We are excited to help Balanced Health Botanicals collect meaningful data to fulfill their commitment to advancing customer education and improving product innovation. ”Says Keenan Keeling, CEO of MoreBetter Ltd, the company behind the Releaf App.

About CBD Distillery ™
CBDistillery ™ was founded in 2016 with the belief that everyone deserves access to high quality, effective and affordable CBD products. As part of this vision, the brand has over 2 million people in The United States and continues to invest in products with the aim of helping people regain control of their health and wellbeing.

Via the Releaf app
MoreBetter (dba Releaf App) is a software-as-a-service provider and contract research organization that provides data insights and is powered by patent-pending technology that gathers real-world evidence-based results from cannabis and hemp users to businesses , Medical professionals, researchers, government organizations and related stakeholders in the cannabis supply chain. MoreBetter uses the information gathered in the Releaf app to provide data-driven insights into seed-to-outcome trends that inform industry best practices and improve the consumer experience.

SOURCE Balanced Health Botanicals

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