As a new industry, the next few months will be pivotal for the development of the cannabis market. With laws changing every month in jurisdictions around the globe, the room for growth is huge as the industry continues to mature. A recent study by Statista showed that in 2018, the global sales of hemp amounted to $3.74 billion, and predicts that number to reach $5.73 billion by 2020.
“This is a cannabis revolution and the market opportunity is tremendous. We may never see an opportunity like this again in our lifetimes,” says Penny Green, CEO of the Yield Growth Corporation (CSE: BOSS) (OTCQB: BOSQF) (Frankfurt: YG3).
Within this market, a segment which used to be niche is quietly becoming mainstream; cosmeceutical CBD products. As the value of cannabis is higher once it is processed into other products such a topicals, and the estimated value of the global wellness market at $4.2 trillion, the business opportunity is incredible. Penny Green recognised this trend, and ensured her company was on track to capitalize on it.
North American Market
Yield Growth quickly focused its branding towards a specific demographic. Its subsidiary and consumer flagship, Urban Juve, is a luxury skincare line which makes natural skincare products infused with hemp, inspired by ancient Ayurvedic knowledge. In May 2019, Yield Growth announced new U.S.A. retail contracts with spas and wellness and luxury shops. These partnerships with upscale and sophisticated retailers are in line with the company’s high-end branding.
Since December 2018, Urban Juve has secured over 100 retail locations across the U.S.A and Canada, and Yield Growth hopes to have 1,000 retail locations as part of its North American retail distribution. Additionally, in May 2019, Urban Juve’s new online e-commerce platform went officially live, which allows for both B2B and B2C sales. This platform will give the company greater reach than ever before, and will allow them to maximise on the CBD cosmeceutical market early on.
In April 2019, Yield Growth announced an alliance with online beauty commerce company ipsy. With over 3 million monthly members, ipsy is the world’s largest beauty community. Urban Juve products will be featured in the monthly glam bags, which will introduce the company to targeted subscribers. As the leading online beauty commerce giant, with over half a billion content views every month and connections with over 8,000 digital content creators, this partnership sets Urban Juve ahead of the competition for CBD infused beauty products.
In a move to further increase awareness of the company, Yield Growth announced that it has secured one of five Platinum Partner positions for the prestigious Lift and co. Cannabis Expo which will be held in Toronto, June 2019. The expo will be attended by more than 20,000 delegates and visitors, and will give the company a chance to “strengthen consumer and trade appreciation for our products, brands, services and technologies,” said Penny Green.
Bold and Innovative Products
Wright and Well, another subsidiary of Yield Growth, also produces cannabis infused products, but rather than just using hemp root and seed oil, its products also contain very high levels of THC and CBD, intended for pain relief. As cannabis is not legal on a federal level in America, the brand will launch in Oregon, and will initially offer 9 products, from topical creams to oils, via a distribution network of 400 cannabis stores. Going forward, the company hopes to expand to other states in which cannabis is legal, such as California, Washington and Nevada, and is also in discussion with facilities in Canada and Latin America.
Yield Growth’s intention is to disrupt the wellness market, not just in North America but globally. The Chinese market is a huge one to target, with annual cosmeceutical sales growing from $275 billion yuan in 2013 to a staggering $373 billion yuan in 2018, according to data from Statista.
In April 2019, Urban Juve entered into an agreement with WeChat, the most popular messaging service in China with over one billion monthly users worldwide. This partnership with consultant Pontier Services will allow the sale of the company’s products within the app. Yield Growth also announced that Urban Juve products are being sent to China for sale through high-end Popsquare kiosks, which will rotate through six popular shopping malls in Hong Kong. This three month agreement will begin in June 2019 and will last three months.
Just the Beginning of the Boom
With the cannabis industry still in its infancy, and new markets opening up around the world, the boom of CBD cosmeceuticals has only just begun. This industry is set to be a huge one, and Yield Growth is taking bold strides to be at the forefront of this exciting and profitable opportunity. With strong roots in North America, and discussions under way to become a key player in the Asian beauty market, Yield Growth looks prepared to be a key contender in CBD cosmeceuticals.
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