By Sheldon Baker, Baker Dillon Group12.19.22
The CBD (cannabidiol) marketplace faces challenges and opportunities. As a substance that was federally illegal before the passage of the 2018 Farm Bill, hemp-derived cannabinoids are still facing regulatory hurdles. Uncertainties continue to present unique challenges in financing, marketing, and production.
Even with a slight Q1 2022 slowdown, some market segments appear to be growing at a rapid pace. E-commerce remains the top sales channel. The Brightfield Group attributes changes to supply-chain issues and slowing consolidation.
As Brendan Smith, co-founder, and CEO of The Raw Botanics Co. stated, “it became very clear over 2022 that CBD as an industry has moved away from the gold rush period.”
According to Madison Cavanagh-Mailloux, senior associate at Arizona-based Columbia West Capital, M&A data sourced from Capital IQ showed CBD market revenue growth slowed in 2021, primarily due to price compression and the shift to lower price point products.
The landscape has remai
Even with a slight Q1 2022 slowdown, some market segments appear to be growing at a rapid pace. E-commerce remains the top sales channel. The Brightfield Group attributes changes to supply-chain issues and slowing consolidation.
As Brendan Smith, co-founder, and CEO of The Raw Botanics Co. stated, “it became very clear over 2022 that CBD as an industry has moved away from the gold rush period.”
According to Madison Cavanagh-Mailloux, senior associate at Arizona-based Columbia West Capital, M&A data sourced from Capital IQ showed CBD market revenue growth slowed in 2021, primarily due to price compression and the shift to lower price point products.
The landscape has remai
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