The rising demand for CBD has many cannabis companies focused on producing and distributing the popular extract.
CBD, commonly sold as an oil, is a natural compound found in cannabis. It’s promoted as a natural cure for pain, anxiety and insomnia.
Canadian Retailers Struggle With CBD Shortage
The aggressive demand for cannabis is creating a shortage of goods, specifically CBD.
With regards to this topic, a CTV article states the main reason is due to licensed producers not realizing the popularity of CBD.
“When something becomes available on the cannabis wholesale ordering sheet, everybody tries to get all that’s available. It’s like a race. That’s one of the biggest opportunities we’re facing in the legalized market,” states Krystian Wetulani, founder of City Cannabis Co. in Vancouver according to the CTV article.
Demand Projected to Keep Rising
However, this shortage is not a shock for many experts, but is something that was expected with cannabis legalization.
In fact, according to Statista CBD sales in the U.S. are expected to grow rapidly, Sales are projected to reach over $1.9 billion U.S. by 2022.
Cannabis Companies Keeping Up
With continued projection, many companies are making large deals and creating priority technology to tackle the growing demand.
For example, Valens GroWorks, the first cannabis extraction facility in Canada, recently signed a CBD extraction agreement with HEXO Corp.
In addition, Biome Grow Inc. signed the largest hemp derived CBD deal to date. Their goal is to focus on the under-serviced Maritime provinces.
On the other hand, NextLeaf will be the first company to have a patent issued around the production of cannabinoid distillate and plan to start infuse products in October of 2019.
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