As of today, every province in Canada and eight U.S. states have legalized cannabis for both medical and recreational use. Other U.S. states are expected to follow suit in the short-term, seeing value in its therapeutic effects as well as tax revenues from the legal sale of such products. In fact, New Jersey’s Governor Phil Murphy announced he may sign a bill to legalize cannabis use by the end of October if state lawmakers can agree on an acceptable tax rate, ranging anywhere from 10% to 25%. The Trump administration announced last week that it intends to pursue legislation lifting the federal ban on cannabis after the mid-term election on November 6, 2018 and some predict this could happen as soon as Spring 2019.
Consumer cannabis products are made from cannabidiol (CDB), which is sourced from the cannabis plant. These consumer CBD products do not contain (or contain less than 0.3%) tetrahydrocannabinol (THC), which is the psychoactive component found in marijuana or the cannabis plant that makes users feel “high.” Consumer cannabis-based products range from beauty and personal care products such as skin and hair care to pain relievers, edibles, and nutritional supplements.
CBD product offerings are not limited to consumer products. GW Laboratories recently received U.S. FDA approval to market prescription Epidiolex (cannabinoid) for the treatment of the rare epilepsy disorders Dravet Syndrome and Lennox-Gastaut Syndrome. This approval by the FDA prompted the U.S. Drug Enforcement Agency (DEA) to move Epidiolex from Schedule I, meaning it had no currently accepted medical use and high potential for abuse, to Schedule IV, which means the drug has low potential for abuse. The company is ramping up manufacturing to begin marketing the drug in the fall of 2018. GW Laboratories markets Sativex in Europe for treatment of spasticity of multiple sclerosis and has 50 phase 2 and 3 trials ongoing, all based on cannabinoids. The cannabis plant is a unique source of more than 100 cannabinoid molecules capable of targeting many diseases. The company’s pipeline of products includes nine various phytocannabinoids which are all bred by growing the cannabis plant. Diseases being researched by GW Laboratories with these phytocannabinoids include autism spectrum disorders, schizophrenia, additional epilepsy indications, glioblastoma (brain/spinal cord cancer), neuropathic pain, and others. With this many potential indications for prescription drugs, the potential for CBD consumer nonprescription indications are plentiful, ranging from health and wellbeing to pain relief, stress and anxiety relief, and help sleeping.
With increased legalization in Canada and the U.S., many companies are interested in learning about consumer applications for CBD, ranging from foods, beverages, health and beauty aids and nonprescription drugs. Recently, Coca-Cola made a public announcement that it is examining its potential in beverages. With the use of CBD products becoming more widespread, business implications are huge. Large manufacturers, growers and formulators in Canada include Canopy Growth Corporation, Aphria, Inc., Aurora Cannabis, and Medreleaf Corporation, each with estimated market capitalizations ranging from $1.8 billion to more than $6.0 billion. Other players in this space include Cronos Group and Tilray Corporation.
Consumer Cannabis Products: U.S. Health and Beauty Market Analysis and Opportunities is a comprehensive qualitative analysis of consumer use CBD health and beauty products, regulatory and legal status, currently available products, marketing channels, and outlook for CBD-based products. CBD is a key ingredient with multiple claims and can be found in everything from lip balms and mascaras to pain relievers and dietary supplements. This report will help subscribers to:
- Assess this dynamic market which is poised for strong growth
- Understand the legal and regulatory barriers that exist
- Analyze consumer attitudes and perceptions about CBD products
- Evaluate claims being made and product forms available
- Learn about business opportunities and how to capitalize on this burgeoning space
- Prepare for potential threats to existing brands
- Examine markets outside the U.S. and how foreign cannabis markets behave where CBD is legal
- Make predictions about the CBD market in the U.S.
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