When the 2018 Farm Bill legalized the production of hemp as an agricultural commodity, it opened up a new world for companies that extract cannabinoids from the plants. Entrepreneurs across the United States have since built businesses that focus on manufacturing products that are infused with the extracts.
These companies are infusing everything from gummy edibles and vaporizers to topical creams and lotions and even beauty products with cannabidiol (CBD), a nonpsychoactive compound found in the cannabis plant.
Hemp is a cannabis plant, but it’s different from marijuana in that it cannot contain more than 0.3% of THC — the compound in the plant that’s associated with getting people who use it high.
Even though the Farm Bill legalized the cultivation of hemp, it did not legalize CBD, and it still requires those who grow hemp to be licensed.
Because CBD is still in a gray area, it’s kept many consumer packaged goods companies from entering the market, but some are starting to explore the possibility.
Established food and beverage manufacturers that are looking at producing CBD products include Coca-Cola (NYSE: KO) and Anheuser-Busch Inbev (NYSE: BUD), and early this year, Molson Coors Beverage Co. (NYSE: TAP) and Hexo Corp. (NASDAQ: HEXO) rolled out a line of nonalcoholic CBD-infused sparkling water in the United States.
Grove’s CBD-infused brands include Zest oil, gummies and tinctures that give consumers the ability to shop by effect; CBD Infusionz lotions, tinctures, gummies, coffee and pet products; and GRN gummies, tinctures and lotions.
The gummy vitamin market is estimated at $5.9 billion this year and is projected to grow to $10.6 billion by 2025, according to a recent report from ReportLinker,