The CBD space is booming, and many have described it as the modern-day gold. There is a common belief that once federal hurdles are completely surmounted, innovators and entrepreneurs in the space would have perfected their acts as a precursor for differentiation and brand positioning.
Reports have shown that retail sales of CBD in the U.S. were expected to surpass $1 billion in 2019, a whopping 133% increase over 2018 sales.
A particular force contributing to the CBD wave is the lifestyle promoted by culture, travel-oriented millennials and pet owners.
With the desire of millennials for natural remedies and natural food additives coupled with the properties that CBD claims to offer over pharmaceutical prescriptions and GMO-laced supermarket offerings, the CBD space will not need to seek further for drivers of the potentially new industry.
CBD research by industry
The only bottleneck the industry may currently have is that many doctors are still of the opinion that there are gray areas around CBD oil usage. This is due to the many unknowns surrounding current claims and long-term usage that may end up a source of concern for any user hence the need for great research and discussions with medical professionals.
But as this debate is going on among medical practitioners, Mexico has set the pace by declaring that cannabinoids with below 1% THC content can be in medicine, supplements, lotions, food, and virtually anything.
While CBD has been praised in successfully treating diagnosis such as epilepsy among others, regulated consumption, including in the form of electronic e-cigs such as vaping provide other benefits such as treating nicotine withdrawal, some studies have found.
The race is on
There are quite a number of companies in and outside the U.S. who are cashing in on the space created by the huge interest in the CBD industry as an aftermath of the 2018 New farm Bill. These companies are neck-deep for global CBD domination and currently researching tech methodologies to drive their businesses, with each showcasing one reason or the other why it’s the best in the industry.
In Europe, contenders have risen as well. Nordic Oil is a CBD brand that was founded in Scandinavia. Alongside a wide range of CBD products, including oil, pet treats, and skincare products, the company aims to educate its customers through valuable articles.
Nordic Oil has driven its brand in part by superb reviews via user rating platforms like Trustpilot. What is also interesting to note is that the company is not only popular among individual CBD users but also among pharmacies. Several of the company’s products have already been approved by German pharmacies, such as apotheke.de.
Reakiro is a European manufacturer and supplier of cannabidiol products, such as its full-spectrum CBD oil. Reakiro claims that it is involved in every step of the production process and says that the process involves only organic extraction methods to rid the CBD of impurities without chemical solvents.
The company favors the supercritical CO2 extraction saying it is by far the safest and most effective, it also points out that the equipment and technology involved make it extremely expensive so it can only be employed by large-scale committed companies.
Some companies are now even multinational. For example, Endoca was originally based in San Diego, CA but has recently opened a subsidiary in the Netherlands. Endoca’s CBD online shop offers a plethora of products including concentrates, pet food, oils, edibles, and more.
Endoca has an incredibly long history for a CBD company, as its foundation dates back to 2008. Founder Henry Vincenty, who studied Biotechnology and Genetics at the University of Copenhagen, is considered to be a well-known thought leader in the CBD industry.
How does technology come into play?
Few have looked at the burgeoning sector’s intersection with tech and the upcoming reverberations it will have on an area that is captivating the attention of many Millennials across the world today.
The first opportunity is in the future of payment transactions, which will be powered by technology. Consumers globally have grown increasingly comfortable with online methods of shopping and online payment systems. Fintech and payment innovations are making these online transactions much easier and frictionless.
In an analysis published in the journal ACS Omega, where applied machine learning was applied to a database of 468 cannabis metabolites to see which ones came closest to THC, it was discovered that out of the 468 metabolites analyzed, 54 had a chemical structure very similar to THC.
Many in the space seem to welcome the ability to help carve out new standard and specifications in an ecosystem of which we are only at the very beginning, taking into consideration that the United States historical legal framework around cannabis and hemp has prevented much sanctioned scientific experimentation.