CBD Market Expected to Grow Thanks to E-commerce
NEW YORK, January 2, 2018 /PRNewswire/ --
Forbes reported that according to Matt Karnes of Greenwave Advisors, the CBD market is expected to reach the $3 billion mark by 2021. Currently, 15 states that allow CBD only - this is in addition to the 28 states plus DC that have legalized medical cannabis. A report by Research and Markets explains that one of the major drivers for this market is Health benefits of CBD oil. Cannabis-based CBD products have a relatively high content of THC compared with hemp-derived CBD products. As a result, cannabis-based CBD products can be used only when they are prescribed by doctors for medical purposes. CBD oil products have several benefits, and as a result the demand for CBD oil has increased over the years. Chineseinvestors.com, Inc. (OTC: CIIX), CV Sciences, Inc. (OTC: CVSI), Medical Marijuana, Inc. (OTC: MJNA), Terra Tech Corp. (OTC: TRTC), Cannabis Sativa, Inc. (OTC: CBDS)
The Research and Markets report indicates the big role Ecommerce is expected to play in the legal cannabis market. According to the report, "the latest trend gaining momentum in the market is Growing influence of online retailing. The increasing popularity of e-commerce businesses worldwide has provided vendors with an opportunity to enhance their profit margins and revenues. E-commerce accounted for nearly 12% of the global retail trade in 2016. Online and e-commerce channels support both business-to-consumer (B2C) and business-to-business (B2B) operations."
Chineseinvestors.com, Inc. (OTCQB: CIIX) just earlier today announced breaking news that today provides a post-holiday update on CBD Biotechnology Co. Ltd.'s Yantai 1985 baijui sales. ChineseInvestors.com, Inc.'s wholly owned foreign enterprise, CBD Biotechnology Co. Ltd. has partnered with a proven leader in the Chinese baijiu market, China GuiZhou HanTai Wine, Inc., and based on its initial marketing campaign, anticipates revenues of 12,000,000 CNY, or $1,800,000 USD in 2018. Baijiu is a Chinese liquor made from grains or rice. Baijiu is about 104 proof (52% alcohol).
Earlier this month, the Company rolled out a digital ad campaign on Today's Headlines, a popular and fast growing mobile app in China with over 600 million users. Online users were directed to the Company's call center to purchase Yantai 1985. After two weeks of advertising verification, traffic debugging, click amplification, conversion improvement and other tests, sales stabilized in the third week of December. As of December 29th, the campaign generated revenues of 189,655 CNY, or over $29,000 USD, in just a week. Based on these results, we expect monthly sales to reach 758,600 CNY, or over $116,000 USD, and annual sales to reach 9,000,000 CNY, or $1,350,000 USD. In addition, the Company plans to open another account on Today's Headlines to replicate this model.
According to Summer Yun, CEO of CBD Biotechnology Co. Ltd., "CBD Biotech is entering a new phase in the development of its online distribution model. The marketing-to-revenue ratio for the initial sales campaign on Today's Headlines was quite favorable; therefore, CBD Biotechnology intends to significantly increase its advertising budget in 2018 to maximize revenue through this channel."
"With healthy revenue projections from baijiu sales in China, continued growth of its hemp-infused skincare line, the recently announced spin off of CBD Biotechnology Co. Ltd. and Chinesehempoil.com, Inc., and the expansion of the Company's core financial education business to include cryptocurrency and blockchain technology, CIIX looks forward to delivering significant value to our shareholders in 2018," stated Warren Wang, ChineseInvestors.com, Inc.'s CEO.
CV Sciences, Inc. (OTCQB: CVSI) operates two distinct business segments: a drug development division focused on developing and commercializing novel therapeutics utilizing synthetic CBD; and, a consumer product division focused on manufacturing, marketing and selling plant-based CBD products to a range of market sectors. On November 14, 2017, the company announced it has been named on Deloitte's Technology Fast 500™, an annual ranking of the fastest growing companies in the technology, media, telecommunications, life sciences and energy tech sectors in North America. The Deloitte Technology Fast 500 is based on percentage of revenue growth from fiscal year 2013 to 2016, with CV Sciences growing by 403% during this period. 2017 marks CV Sciences' first year named on the Deloitte's Technology Fast 500™ list.
Medical Marijuana, Inc. (OTC: MJNA) is the first-ever publicly traded cannabis company in the United States. On December 13, 2017, the company announced that subsidiary HempMeds® Mexico generated the largest-ever revenue month in the history of the company in November of 2017, as well as reached major milestones in its business operations. HempMeds® Mexico is Medical Marijuana, Inc.'s distribution branch in the country, focusing on providing non-psychoactive cannabidiol products to the people in Mexico. In order to import its CBD hemp oil to Mexico, the Company had to develop a product completely free of THC. They achieved this by isolating the CBD within its hemp oil, thus eliminating the trace amounts of THC in its hemp oil to make RSHO-X™.
Terra Tech Corp. (OTCQX: TRTC) operates through multiple subsidiary businesses including: Blüm, IVXX Inc., Edible Garden, and MediFarm LLC. Blüm's retail and medical cannabis facilities provide the highest quality medical cannabis to patients who are looking for alternative treatments for their chronic medical conditions as well as premium cannabis to the adult-use market in Nevada. Blüm offers a broad selection of cannabis products including; flowers, concentrates and edibles through its Oakland, CA and multiple Nevada locations. IVXX, Inc. is a wholly-owned subsidiary of Terra Tech that produces cannabis-extracted products for regulated medical cannabis dispensaries throughout California and medical and adult-use dispensaries in Nevada. On November 1, 2017, the company provided an update on the planned joint venture with NuLeaf Sparks Cultivation LLC ("NuLeaf Sparks") and NuLeaf Reno Production LLC ("NuLeaf Reno"), in Nevada. The joint venture is expected to fast track Terra Tech's cultivation and production facilities, allowing it to increase supply of its proprietary IVXX wholesale brand to meet the growing demand for cannabis products throughout Nevada.
Cannabis Sativa, Inc. (OTCQB: CBDS) is engaged in the licensing of cannabis related intellectual property, marketing and branding for cannabis based products and services, operation of cannabis related technology services, and ancillary business activities. On December 4, 2017, the company announced that its subsidiary, PrestoDoctor, is expanding its online medical marijuana recommendation services into New York. PrestoDoctor currently serves patients via both their online platform and with dispensary kiosks operating in California and Nevada and will now extend their online services to patients located in the State of New York. "New York is a heavily populated area and has a high opiate addiction," said Robert Tankson, Co-Founder and COO of PrestoDoctor. "Through PrestoDoctor we want to bring a safer option to the New York area for pain treatment as well as treatment of other medical conditions."