Expansion of CBD market marks a new era for E-cigarette companies

Since the announcement of the legalization of marijuana in Canada and passing of the Farm Bill in the United States, the global industrial cannabis market has ushered in new growth.

According to data released by the cannabis industry consulting firm Viridian Capital Advisors: In 2018, global cannabis companies have raised nearly $13.8 billion. The industrial cannabis sector in the world’s major stock markets has been soared.

Not only that, with the rapid increase of CBD usage groups, CBD products are highly popular in the consumer market. It seems that more and more enterprises are beginning to invest in the CBD market.

Many companies transferred to CBD market

According to the Associated Press, the world’s largest tobacco company Altria Group bought a 45% stake in the Canadian famous cannabis listed company Cronos Group for $1.8 billion, and can choose to increase its shareholding to 55% in the next five years.

In 2018, food and beverage giants such as Coca-Cola, Heineken, Budweiser and Constellation Group also laid heavily on the CBD market and developed many foods and beverages containing CBD. According to various sources compiled by the Canadian media “BNN Bloomberg Television”, the Coca-Cola Company is very interested in developing beverages containing CBD ingredients.

The Coca-Cola admits that the purpose of developing hemp drinks is that CBD Coke can relieve inflammation, pain and cramps. The company also explained in an email replying to the media: “We are closely monitoring the growth of non-psychoactive CBD as a component of functional health drinks worldwide. This area is growing rapidly.”

In addition, according to the Washington Times, senior executives at retail giants such as Wal-Mart and Target are also quietly meeting with beverage, soft candy, topical cream and CBD grease manufacturers.

In fact, this is not the first time that Wal-Mart has been introduced into the industrial cannabis field. In October last year, Wal-Mart’s Canadian company announced that it was exploring the possibility of selling products containing CBD ingredients at stores in Canada. Although Wal-Mart spokesman Diane Medeiros said it would not sell any CBD products before full legalization, the news of the day still pushed Wal-Mart’s share price up.

Since then, Wal-Mart has been reported a partnership with the health functional beverage company New Age Beverages Corporation, which will sell its three new beverage combos at all retail stores in the United States.

Although in this cooperation, Wal-Mart repeatedly stressed that the three products sold will not involve the CBD component, but the investor and market sentiment are still optimistic, and the industry has also expressed that this cooperation with the New Age beverage company may be the preparation for its CBD products in the future.

Due to the medical value and market space of CBD products, the senior consultants of the Group have evaluated the CBD industry. It is estimated that by 2022, the market size of the CBD will reach $22 billion. According to data from market research firm ARCVIEW, legal cannabis sales in the North American market in 2016 amounted to approximately $7 billion. It is expected that sales will grow at an average annual rate of 27% in the next five years and reach $22.6 billion in 2021.

CBD demand expands, driving Chinese domestic manufacturing growth

On the other hand, industrial cannabis (hemp) is still a sensitive issue in the world, but with the introduction of many studies, not only the food retail giants are optimistic about the prospects of industrial development, even the investors’ optimism, can bring positive influence to the development of CBD devices.

It is understood that the CBD oil is not only simpler and more convenient to use than the traditional cannabis “flower” and “cream”, but also achieves the same effect. For this reason, the demand for CBD devices in Europe and the United States has increased significantly, and they has begun to actively seek Chinese domestic CBD atomization technology suppliers.

The VELX, a CBD-related company established in Xixiang, Shenzhen in August 2018. It focus on innovative atomization that integrates “a strong technical foundation, a high-level factory, a perfect production system and a quality control system”. A technology solutions provider that provides innovative, safe and effective atomization technology, devices and related solutions for overseas CBD legal areas.

VELX tells VPXSL.com that the reason why CBD vape devices can develop at a high speed is that the main reason is that the CBD can be proved to have an effective therapeutic effect on sputum, anxiety, inflammation and pain in some degree. It also includes a very important point, namely “The use of CBD vape oil has grown expansively and demand has increased.”

VELX has been focusing on the development of innovative CBD atomization technology since its inception, and has completed the “VELX atomization technology” through independent research and development. Based on this technology, VELX also extends a variety of proprietary technology products such as atomizers, batteries, disposable atomization devices, and small vape atomization devices. And it can provide customers with customized OED, ODM services, and CBD technology solutions for the growing European and American CBD market.

In fact, behind VELX’s is GEEKVAPE, which has six its own supply chain subsidiaries, it has great advantages in production, research and manufacturing, so it is easier to control product details, information transmission, and quality consistency.

Up to now, VELX has established a strong core team for the development of the CBD market, including: R&D leader, one of the earliest industry experts in China to contact CBD atomization technology, deep drilling atomizer technology for many years; sales manager With 9 years of overseas sales experience in research, production and marketing, specializing in the management services of large overseas clients and the operation of foreign-related projects; the design team has been awarded the German Red Dot Award and the if design award and many other awards.

VELX emphasizes that although the production of any type of CBD vape oil is banned in the country, the future prospects are still promising from the perspective of device development. After all, the core technology of CBD devices is mostly from e-cigarettes. For enterprises with deep e-cigarette manufacturing base, the legality of CBD means that business transformation and new market.

VELX atomization technology has been matured in the company’s various products, and after the introduction of heavy metals in CBD devices in California, VELX also passed the relevant tests. On the other hand, VELX has developed a highly adaptable Prism battery based on the characteristics of CBD oil. The first dual preheating patent technology is used to heat the outer wall of the atomizer and the atomizing core, so that customers can have more Good CBD experience.

Although the development cycle of CBD equipment is long and the process of verification is required, the VELX team has reached a considerable level of research and development. As long as the customer can feedback a specific situation, the company can quickly propose improvement solutions according to customer needs. Accurately grasp the customer’s use characteristics and provide technical services to customers.

VELX said that in terms of the current environment, the company is focusing on overseas expansion of B2B business, including overseas market development, customer management and continuous product development. “Technology development and high-quality production are the foundation of VELX. On this basis, we will develop new products, technologies, and other products related to this field according to the needs of customers, and become the trusted CBD innovation atomization brand in the industry.

Since the end of 2018, the agricultural amendment bill passed by the United States, industrial cannabis (hemp) has been removed from the “controlled substances law”, the CBD industry have witnessed an unprecedented growth. However, as the sales of traditional retail industry slowed down and the retail market continued to suffer, food companies had to solve the current predicament and actively embrace the new consumer market.

Although retailers are less likely to get high profits from the CBD, consumers are already showing strong willingness to spend on CBD products, whether they are vape oil, CBD devices, functional beverages or other related categories. And there is demand for the market, if not, VELX will not rush into the CBD field.

In addition, according to the financial report released by Canadian cannabis producer Tilray in the first quarter of 2019, its revenue in the first quarter of 2019 was 23 million US dollars, an increase of nearly 195% year-on-year. It shows that the growth momentum of the CBD has not slowed down, and related enterprises have invested in the CBD market.

Further reading: Cannabis in China

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