CBD Set to Become a Billion Dollar Market in Just 3 Years
Original story from Financial Buzz
According to a report by Forbes, the Brightfield Group projects that Hemp-derived cannabidiol (CBD) will be a billion-dollar market in just three years. The CBD market is a large part of the legal cannabis industry. CBD products do not have any psychotropic effects, and are usually used for medical purposes. Brightfield's data estimates that hemp CBD sales have already hit $170 million in 2016 and at a 55% compound annual growth rate over the next five years the market will cross the billion-dollar mark.
Bethany Gomez, the Director of Research at Brightfield Group, explained, "One of the most surprising things we found during this research was how many companies are currently operating in the space, and how few of them are generating significant revenue. Essentially everyone is trying to do hemp, but only a handful are doing it well. It's seen as easy because it can be sold online but, with restrictions on traditional marketing, it is very difficult to connect with your core consumer and even communicate why they need your product."
Phivida and Namaste Launch New Agreement
Phivida Holdings have announced that, "it has signed a Global Digital Reseller-Supply Agreement. As key terms in the agreement, Namaste has been approved as the preferred global online retailer and digital affiliate marketing partner for Phivida's product line of premium hemp-derived CBD infused functional beverages and clinical heath products. The agreement includes a global online territory, targeting the launch in Germany and Australia.
Phivida CBD beverages, extracts, juices and shots are professionally formulated by health care practitioners, made with premium ingredients, tested for quality, safety and manufactured to GMP standards. This Agreement represents a strategic initiative between both companies to promote high quality CBD products through Namaste's platform and to their existing databases of users within the territories. CBD is a cannabinoid compound which can be derived from both cannabis and hemp plants and is playing a vital role in the emerging global medical cannabis market.
With Phivida's management team having a strong background from the beverage industry and branding, including former senior executives from Redbull, Proctor and Gamble and McKesson's, Namaste is pleased to be able to offer Phivida's premium CBD beverages and infusions to its patients and practitioners globally, with an initial launch in Australia and Germany.
Sean Dollinger, President and CEO of Namaste comments: "Namaste is extremely excited to be partnering with Phivida and its world-class management team. We're looking forward to entering the beverage space together with Phivida as we believe there is significant demand for these products in our market. Many of our successes to this point can be largely attributed to our keen ability in identifying industry leaders and then forming strategic alliances. Our partnership with Phivida further demonstrates that ability, and we feel very optimistic to be collaborating with a management team whose pedigree speaks for itself. We would like to thank Phivida for granting Namaste rights of its online retail products in the Territories, as we expand our presence globally.
We fully expect this partnership to evolve and fully intend on exhausting all opportunities whereby both parties are able grow and expand their respective market share. Not only does this offer Namaste the ability to expand its product line but so too does it help us in penetrating new markets as we look to create the world's most expansive online medical cannabis marketplace."
John - David Belfontaine, President and CEO of Phivida reports: "As Phivida continues to expand is CBD product offerings into a $1 Trillion global health and wellness market, it is critical that we secure the strongest distribution partners. Ecommerce and digital marketing is a core horizontal within our greater strategic business plan, and Namaste is an ideal partner to expand our online presence into emerging markets around the world. We look forward to launching our global digital marketing and distribution platform with Namaste's support as a key strategic partner."