If you have been paying even the slightest attention to the news for the past few years, you have undoubtedly heard of cannabidiol (CBD), the hemp extract that has taken the world by storm. For a product that was barely known 5 years ago, it has come a long way, with a market estimated to be worth billions.
Extremely potent and versatile, CBD is effective against an impressive list of conditions ranging from anxiety and depression to high blood pressure and chronic pain. In June last year, the U.S. Food and Drug Administration (FDA) approved a CBD derived drug to treat seizures in rare and hard to manage pediatric epilepsies.
However, one thing that’s for sure is that CBD is slowly sidelining a couple of industries. It was inevitable really, for something that’s been touted as a ‘natural alternative’ to a variety of products. Let’s look at a few of the Industries that are being threatened by the global CBD phenomenon.
Pharmaceuticals. This is perhaps the industry that will be most affected. As we all know, most pharmaceutical drugs come with a variety of side effects, some of them even as extreme as the disease they seek to treat. CBD, on the other hand, can be taken without much side effects.
The pharma industry is catching on, and a few pharmaceutical companies have partners with cannabis companies to exploit the demand for CBD-based remedies.
Tobacco. One of CBD’s touted uses is its ability to help smokers stop smoking. Not to mention, the tobacco industry has been on a steady decline for the past few years. Currently, people are much more health-conscious, and it’s affecting the bottom lines of many a tobacco company.
Many of them have started opting for reduced-risk products (RRPs) such as vapes and cannabis, to retain and attract new customers.
Alcohol. In 2018, Molson Coors listed cannabis as one of the biggest risks to the business. In its annual report, the company said that “the emergence of legal cannabis in certain U.S. states and Canada may result in a shift of discretionary income away from our products or a change in consumer preferences away from beer.”
Research tracking behavioral changes from 2018 to 2019 found that the percentage of alcoholic consumers using cannabis increased from 36% to 45%, while the percentage of cannabis users who consume alcohol reduced from 72% to 65%.
To counter this, a number of alcohol producers have partnered with cannabis companies. Molson Coors, for instance, is partnering with Constellation Brands to launch CBD-infused beverages.
Experts see this disruption of existing industries as strong proof to cannabidiol industry players like VIVO Cannabis Inc. (TSX.V: VIVO) (OTCQX: VVCIF) and Grapefruit Boulevard Investments Inc. (OTCQB: IGNG) that the CBD industry has come to stay.
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