Cannabis
Hill Street Provides Selected Preliminary Unaudited FY2022 Financial Results Highlights and Operations Update to Shareholders
Toronto, Ontario–(Newsfile Corp. – October 6, 2022) – Hill Street Beverage Company Inc. (TSXV: HILL) (“Hill Street“, or the “Company“), is pleased to provide a letter to all shareholders from CEO Craig Binkley, with a preview of selected preliminary unaudited financial results highlights for the three-month and twelve-month periods ended June 30, 2022 and an update on operations.
Dear Hill Street Shareholders,
As I stated in my August 11, 2022 Update Letter, fiscal year 2022 was by far the most successful fiscal year in the history of Hill Street. That update included a significant review of the specific operational successes of the Company throughout the year that have helped to drive our financial results. While 2022 audited financials are due at the end of this month, I want to share a preliminary view of select unaudited results which show a strong continuation of the growth trend of the business. In addition, I want to share several operational updates on our business lines to provide context for these results and to preview our evolving business initiatives as we progress through FY23.
Stellar Q4 Performance Drove Significant Growth in Financial Metrics for Q4 and the Full Year
Anticipated consolidated net revenue more than doubled in Q4 of fiscal year 2022, growing a dramatic +118% vs. Q4 one year ago. Full fiscal year 2022 net revenue growth is expected to finish at a robust +42% vs. fiscal 2021, completing a very strong growth year.
Expected gross profit grew even faster than revenues. The quarter marks the first time that this key metric will have surpassed $500,000, with +127% growth vs. Q4 one year ago. Expected gross profit for the full fiscal year 2022 grew an impressive +47% vs. fiscal 2021.
These preliminary results evidence the Company’s sustained financial performance that we have previously highlighted. Graph 1 below, which was first introduced in my April 5, 2022 CEO Letter has been updated to include the quarterly trailing 12-month figures (TTM) for net revenue and gross profit from September 2019 to June 30, 2022, an analysis period that covers the past three full fiscal years. The figures above each line represent the change vs. prior year for that metric. Additionally, the figures in the green boxes represent the gross profit margin expressed as a % of net revenue.
As communicated previously, TTM net revenues have been increasing consistently between 24% and 53% since Q4 of fiscal 2020 – a period of nine quarters. TTM gross profits have been increasing even more rapidly, and the profit margin on the business has increased significantly from 31% in Q3 2020 to a sustained 52-53% for the last four quarters, including the anticipated Q4 2022 figure. Driving profitable growth is our mission and these key financial metrics indicate that we’ve been successful at that.
Graph 1
To view an enhanced version of Graph 1, please visit:
https://images.newsfilecorp.com/files/5205/139750_7033bedd242ec8a4_001full.jpg
Note: The preliminary fiscal year 2022 and Q4 financial results are unaudited, subject to revision, and anticipated to be finalized and released by late October 2022. The Company’s final audited financial results for the fiscal year 2022 and Q4 could differ materially from these selected preliminary results.
We Implemented a Significant Streamlining of the Vin(Zero) Alcohol-Free Wine Business in Q4
Early in the fiscal year, we began an evaluation of our commercial operating system for Vin(Zero), with many of the recommendations from that program being implemented in Q4. We made major adjustments across all the key areas of production planning, shipping and logistics, warehousing, sales and retail distribution. We expect to see several key positive financial impacts from these changes over time. Importantly, we have:
- shortened our order-to-cash cycle dramatically;
- reduced the level of working capital that we will be holding in finished goods inventory; and
- structured our forecasting, operations planning, and inventory logistics models to create a more efficient shipping cycle that will reduce the need for more expensive temperature-controlled containers for our products.
However, an important by-product of these changes is that we expect to see more dramatic quarter-to-quarter swings on the recognized revenues of this business. As we’ve previously explained, the alcohol-free wine business often had quarterly sales shifts resulting from depleted inventories from supply chain issues or COVID-related delays. These inventory problems often caused additional fees from retailers, multiplying the negative impact of the inefficiencies. It was therefore always our view that it was more accurate to look at the business over time to determine the true sales and financial trends.
In this new streamlined commercial model, we will be placing larger orders less frequently, but more rapidly converting those orders to revenues on the P&L and cash on the balance sheet. As a result, we will provide normalizations and longer-term trend analysis for our investors to better understand the true performance of the business.
Q4 of fiscal 2022 got a boost in estimated revenues because we shifted our model and converted warehoused finished goods inventory to revenue and importantly, into cash. We will provide more detail on those impacts when we release the audited results.
Importantly, while a lot of attention has been placed on the launches of our cannabis projects, the Vin(Zero) business has allowed us to generate cash for operations in a way that many other cannabis-related companies can’t. We continue to believe in the growth opportunity of this business as we continue to expand our view beyond Canada, and we believe that the new model will be a more efficient operational and financial approach to profitably capturing that growth.
DehydraTECHTM Technology Licensing Business Delivered a Strong Year of Expansion and Growth
As we’ve said before, integrating the DehydraTECH™ licensing business into the Company following our December 2020 acquisition from Lexaria Bioscience Corp. changed our business financially, operationally, and geographically. The DehydraTECH™ rights have allowed us to build plans to fundamentally grow our business beyond Canada into global markets, beyond beverages into cannabis technology, and beyond B2C into B2B scale opportunities as we work to build a global, multi-business company pioneering the space where premium crafted consumer products meet bioscience.
As noted previously, as of July 2021, the Company only had one DehydraTECH™ licensee operating live in-market with DehydraTECH™ THC-infused products – the owner of the “1906 Drops” line of products (“1906“), which were then available in four U.S. states, with 1906’s cannabis-infused chocolate products then also available primarily in Colorado.
By the end of fiscal 2022 our U.S. footprint was up to eight states, representing a population of over 90 million people[1] (+305% vs. the 29.5MM with which we started the fiscal year) and an addressable market of $19.2B USD[2] in estimated 2022 total cannabis sales.
With 1906’s expansion into Ohio and Pennsylvania in Q1 of fiscal 2023, we now have an operating footprint in the U.S. covering ten states with a total population of 115MM[3] and an addressable market of approximately $21.5B USD in estimated 2022 cannabis sales[4]. That footprint covers states generating almost two-thirds of the addressable market of $33B USD in projected total U.S. cannabis sales for 2022[5], up from our coverage of less than one-quarter of total U.S. cannabis sales at the beginning of FY 2022.
Expected revenues for fiscal year 2022 from DehydraTECH™ licensing are approximately $550,000 vs. just over $200,000 in fiscal year 2021. As we’ve previously highlighted, in fiscal year 2022, we have not yet realized the full impact of revenues expected from many of the DehydraTECH™ product launches and expansion plans of new and existing licensees that have been announced as they continue to roll out.
Recently Announced Expansions Are Now Hitting the Markets Live:
- 1906 Drops have expanded to Michigan, Pennsylvania, and Ohio in Q1 of fiscal year 2023.
- Lume launched their brand utilizing DehydraTECH™ in Michigan dispensaries in September.
- Neo Alternatives launched their Root 66 brand utilizing DehydraTECH™ in Massachusetts dispensaries in September.
- Folium Farms is expected to launch their Karma brand utilizing DehydraTECH™ in Oregon in early October.
Importantly, this licensing business unit has a very attractive financial structure. It is a low operating expense business, with even lower capital expense required of the Company. As the revenues continue to grow and make up a greater percentage of the total consolidated financials, we expect it to continue to improve the overall financial efficiency metrics of the company and further drive our cash efficiency.
We Are Re-evaluating Our Overall Cannabis Strategy for Canada and Withdrawing Our (V)ia Regal Cannabis Beverage Initiative from the Canadian market
Before discussing the important strategic rationale behind our decision to withdraw our (V)ia Regal cannabis beverage initiative from the Canadian market, it is important to note that the exceptional financial numbers that I have shared earlier in this update do not include any revenues from the sale of (V)ia Regal beverages in Canada. We will provide more details when we release our audited fiscal year 2022 results, but the revenues from our Canadian cannabis beverage business were very disappointing and overall, this has turned out to be an unprofitable initiative for Hill Street due to the complexities of the business system that was put in place.
Our rationale in coming to this decision was based on several factors:
- The cannabis beverage market is in very early-stage development but is already highly saturated.
Beverages hover around only 2% cannabis market share in Canada and around 1% in the US[6]. Yet there is an exploding number of distinct products fighting for that small and relatively stable share, increasing from around ten products in June of 2020 to over 100 by January 2022 in the Canadian provinces. That type of competitive intensity often drives price and margin compression as we’ve seen in other markets, as brands pay to secure scarce retail space and drop pricing to compete for consumer purchases.
Based on my almost forty years operating in alcoholic and non-alcoholic beverages across the globe with leading companies and brands, I personally believe that the ready-to-drink (RTD) cannabis beverage market is going to take a longer time and significant capital investment to develop. Large investments in capital equipment for manufacturing have been made by LPs in Canada and the US, but it will also take additional significant investment at retail for cold drink equipment – just as we’ve needed those major investments to drive presence, consumer purchase and growth in other beverage categories.
In addition, RTD beverages have higher costs to transport, warehouse, and stock at retail due to weight and bulk vs. other edible products, so the category will always be competing with more efficient cannabis alternatives for distribution and shelf space.
- There are significant regulatory challenges in the Canadian cannabis market.
The planning of our (V)ia Regal initiative, like many other cannabis initiatives in Canada, began before cannabis edibles were even legal, and before the final cannabis regulations were published by Health Canada. It is now well known that there are significant regulatory challenges in the Canadian cannabis market with very limited abilities to promote products.
Marketing and promotion in mainstream markets provide necessary navigation for consumers and drive differentiation for brands – it’s not just about delivering a product with a name and a logo. The regulatory limitations on cannabis promotion in Canada make it unfeasible for us to support a premium cost / premium priced product like (V)ia Regal. Because of Health Canada’s interpretation of Canadian cannabis promotion regulations, we have had to withdraw multiple elements of our marketing tools and basic messaging around the core product proposition and ingredients. Our inability to effectively promote the brand was further exacerbated by the complex chain of cannabis licenses needed in the route to market, as we could not operate directly without our own licenses.
- The (V)ia Regal business system is not financially efficient.
The supply chain and manufacturing model for (V)ia Regal was not financially efficient, unlike the key drivers of our success on our other two business lines. Hill Street took on significant amounts of inventory of alcohol-free wine – the base of the (V)ia Regal product, because of the long lead time order and production cycle for that base material. The alcohol-free wine imported as a bulk wine input into (V)ia Regal has a comparatively shorter shelf life than when imported as our Vin(Zero) finished goods. As we ordered bulk wine inventory based on early aggressive forecasts for the industry and, as early forecasts for the (V)ia Regal business did not materialize, we have had to write off significant amounts of that inventory due to code date expiration and spoilage.
- The cannabis market size in Canada is relatively small vs. our US DehydraTECH™ opportunity.
The (V)ia Regal business was our first cannabis initiative in Canada and was in development well before we acquired the rights to DehydraTECH™ technology. Canada has a total population of 38MM, with addressable cannabis market sales estimated to be just under CDN $4B2 in 2021. Contrast those figures with the US population of 115MM and approximately USD $21.5B market that we are currently operating with our DehydraTECH™ footprint in the US, and it’s clear that the larger opportunity for our resources is DehydraTECH™ in the US. The dramatic difference in the financial efficiency and profitability of the two cannabis businesses amplifies the rationale to prioritize the US DehydraTECH™ business.
While we remain committed to developing quality options for Canadian consumers to have great-tasting drinks with THC, the (V)ia Regal results to date and overall Canadian cannabis beverage market conditions have made it such that we believe it would be prudent for us to withdraw from this market at this time and to redirect our efforts to higher and more efficient returning initiatives in our portfolio.
Therefore, we are announcing today that we have made the decision with our Health Canada‐licensed manufacturing and sales partner Molecule Inc. to no longer produce any additional quantities of (V)ia Regal Pink Grape or White Grape sparklers, the two products that we launched together. Once existing inventories of (V)ia Regal products are sold through, they will no longer be available for sale in Canada.
Our Longer-Term View of Winning Consumer Occasions with Cannabis Beverages
While we are withdrawing from the RTD cannabis beverage business in Canada at this time, we do believe that there will be global opportunities for this business in the future, as the category and commercial systems more fully develop. At the appropriate time, we expect to return to product R&D and concept development on the cannabis infused RTD beverage category utilizing our patented DehydraTECH™ technology as the backbone vs. the other technologies and ingredient systems being used across the current RTD cannabis beverage market.
In the meantime, we also continue to work on securing a licensed partner in Canada that could support a DehydraTECH™ manufacturing operation, which would allow us to potentially launch a consumer form factor that could be mixed into a consumer’s favorite drink to win occasions. Interestingly, drops, mixes, elixirs and syrups are the largest segment of the cannabis beverage category in the US markets, and we are continually expanding our experience and knowledge base in those segments as we work with our US DehydraTECH™ licensees. These form factors leverage the infrastructure and presence of existing RTD beverages in the market – both at home and on premise – and allow for more individual customization of consumer beverages to their favorite types and flavors that they already buy and consume.
Lastly, we continue to evaluate options for our Mississauga, Ontario Lucknow facility but have paused any additional investments through the end of calendar 2022, as we utilize our cash on initiatives that have a higher and more immediate return.
We Continue to Make Progress on Building Our Corporate Reputation
As mentioned in the August update, we have now done significant work internally on the Hill Street corporate reputation strategies and plans for both B2B industry awareness and investor relations support. We are actively working with The Panther Group to help drive many of these reputation-building activities with us through their network and programs. We worked closely with them to make additional connections and introductions at two events in September 2022 – the Benzinga Capital Conference in Chicago and MJ Unpacked in Las Vegas. We will share additional programs and materials as they develop, but we believe that our exceptional business performance provides a strong foundation on which to expand and amplify our awareness and reputation.
Summary
In summary, we had a transformative fiscal year 2022 with major operational advances leading to the outstanding financial performance that we’ve previewed here. We enter fiscal year 2023 with the impact of many of those fiscal 2022 operating successes expected to hit our financial results in FY 2023, as well as several important new wins that have already kicked off this fiscal year.
We appreciate your support and hope you share our excitement about the FY22 financial results and the coming year.
Sincerely,
Craig Binkley, CEO
About Hill Street Beverage Company Inc. (TSXV: HILL)
Hill Street Beverage Company Inc. is a progressive non-alcoholic beverage and cannabis solutions company. We are pioneering the space where craft consumer products meet bioscience by combining our deep CPG expertise and our rights to use Lexaria Bioscience Corp.’s ground-breaking DehydraTECH™ patent portfolio for product development, licensing and B2B sales of cannabis ingredients.
For more information on our business activities or to check out Hill Street’s award-winning alcohol-free line-up and order product to be delivered straight to your home go to https://hillstreetbeverages.com/wines/.
For more information:
Craig Binkley, Chief Executive Officer
craig@hillstreetbevco.com.
FORWARD-LOOKING STATEMENTS
Statements in this press release may contain forward-looking information. Any statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as “may”, “should”, “would”, “anticipate”, “expects”, and similar expressions. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances, such as future availability of capital on favourable terms, may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this press release are expressly qualified by this cautionary statement. The forward-looking statements contained in this press release are made as of the date of this press release. The Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Not for dissemination in the United States.
[1] US Census Bureau, https://www.census.gov/quickfacts/fact/table/US/PST045221
[2] MJBiz Factbook 2022
[3] US Census Bureau, https://www.census.gov/quickfacts/fact/table/US/PST045221
[4] MJBiz Factbook 2022
[5] MJBiz Factbook 2022
[6] “Cannabis Beverages: A look at category trends & performance”, Headset 2022 Report, https://www.headset.io/industry-reports/cannabis-beverages-a-look-at-category-trends-performance#form
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/139750
Cannabis
Verano Announces the Opening of Zen Leaf Fairless Hills, the Company’s Newest Affiliated Dispensary in Pennsylvania, in Prime New Location
- Zen Leaf Fairless Hills, the Company’s newest affiliated dispensary in Pennsylvania, relocated from its former home in Chester to 203 Lincoln Highway, a busy thoroughfare with daily traffic of over 17,000 vehicles per day1
- As the first medical cannabis dispensary in the city, Zen Leaf Fairless Hills will offer an elevated experience for area patients, including increased convenience and accessibility with numerous point-of-sale stations and kiosks for seamless in-store browsing and ordering
- Verano’s active operations span 13 states, comprised of 142 dispensaries and 13 cultivation and processing facilities with more than 1 million square feet of cultivation capacity
CHICAGO, July 26, 2024 (GLOBE NEWSWIRE) — Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF) (“Verano” or the “Company”), a leading multi-state cannabis company, today announced the opening of Zen Leaf Fairless Hills in Pennsylvania on Friday, July 26th, following a ceremonial ribbon cutting at 11 a.m. local time. Zen Leaf Fairless Hills is located at 203 Lincoln Highway and will be open Monday through Saturday from 9 a.m. to 8 p.m. and Sunday from 10 a.m. to 6 p.m. local time.
The dispensary is located in Bucks County, the fourth largest county in the Commonwealth with a total population of over 630,0002 residents. To increase accessibility and convenience, Zen Leaf Fairless Hills features large in-store kiosks and numerous point-of-sale stations to enhance the browsing and ordering experience for patients. To celebrate the grand opening of Zen Leaf Fairless Hills and following a ceremonial ribbon cutting, patients will be greeted with complimentary deals and doorbusters on featured branded products.
“We are excited to bring the Zen Leaf experience to local patients in Fairless Hills, where our talented team members will continue to deliver hospitality-driven care and top-quality products for local patients,” said George Archos, Verano Founder and Chief Executive Officer. “As the Pennsylvania medical cannabis patient population continues to grow, we are grateful for the opportunity to deepen our roots in Bucks County at our newest Zen Leaf location in the Commonwealth, and look forward to providing a warm and welcoming environment for current and future patients.”
Zen Leaf Fairless Hills adds another convenient outlet for Philadelphia area patients, and solidifies Verano’s footprint in the state as one of the Company’s 18 affiliated Pennsylvania dispensaries. Verano’s Pennsylvania operations also include a state-of-the-art 62,000 square foot cultivation and processing facility in Chester, where the Company produces its signature Verano Reserve flower and Troches, concentrates and vapes; (the) Essence and Savvy flower and extracts; and Avexia RSO cannabis oil and topicals. For additional convenience and accessibility, patients can choose to order ahead at ZenLeafDispensaries.com for express in-store pickup.
About Verano
Verano Holdings Corp. (Cboe CA: VRNO) (OTCQX: VRNOF), one of the U.S. cannabis industry’s leading companies based on historical revenue, geographic scope and brand performance, is a vertically integrated, multi-state operator embracing a mission of saying Yes to plant progress and the bold exploration of cannabis. Verano provides a superior cannabis shopping experience in medical and adult use markets under the Zen Leaf™ and MÜV™ dispensary banners, including Cabbage Club™, an innovative annual membership program offering exclusive benefits for cannabis consumers. Verano produces a comprehensive suite of high-quality, regulated cannabis products sold under its diverse portfolio of trusted consumer brands including Verano™, (the) Essence™, MÜV™, Savvy™, BITS™, Encore™, and Avexia™. Verano’s active operations span 13 U.S. states, comprised of 13 production facilities with over 1,000,000 square feet of cultivation capacity. Learn more at Verano.com.
Contacts:
Media
Verano
Steve Mazeika
VP, Communications
Steve.Mazeika@verano.com
Investors
Verano
Julianna Paterra, CFA
VP, Investor Relations
Julianna.Paterra@verano.com
Forward Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Such forward-looking statements are not representative of historical facts or information or current condition, but instead represent only the Company’s beliefs regarding future events, plans, strategies, or objectives, many of which, by their nature, are inherently uncertain and outside of the Company’s control. Generally, such forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “future”, “scheduled”, “estimates”, “forecasts”, “projects,” “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases, or may contain statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “will continue”, “will occur” or “will be achieved”. Forward-looking statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking statements herein, including, without limitation, the risk factors described in the Company’s annual report on Form 10-K for the year ended December 31, 2023, its quarterly report on Form 10-Q for the quarter ended March 31, 2024 and any subsequent quarterly reports on Form 10-Q, in each case, filed with the U.S. Securities and Exchange Commission at www.sec.gov. The Company makes no assurances and cannot predict the outcome of all or any part of the on-going litigation with Goodness Growth referenced in this press release, including whether the Company will prevail on its Notice of Application and its counterclaim, or whether Goodness Growth will prevail on its claim for damages against the Company. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information or forward-looking statements that are contained or referenced herein, except as may be required in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice regarding forward-looking information and statements.
###
1 Pennsylvania Department of Transportation
2 United States Census Bureau
Cannabis
Unlocking New Horizons in Health: TNR, The Niche Research Reveals the Transformative Power of Minor Cannabinoids
Wilmington, Delaware, July 25, 2024 (GLOBE NEWSWIRE) — Minor cannabinoids refer to the lesser-known compounds found in the cannabis plant, distinct from the well-known THC (tetrahydrocannabinol) and CBD (cannabidiol). While THC and CBD dominate the market, minor cannabinoids such as CBG (cannabigerol), CBC (cannabichromene), and CBN (cannabinol) are gaining attention for their potential therapeutic benefits. These compounds are extracted from both marijuana and hemp plants, with varying legal restrictions depending on their THC content. The minor cannabinoids market is poised for significant growth, driven by increasing consumer awareness and demand for alternative health and wellness products. As regulatory environments around cannabis products evolve, companies are exploring the potential of minor cannabinoids in various applications, including pharmaceuticals, nutraceuticals, cosmetics, and food and beverages.
Minor cannabinoids are being researched for their potential therapeutic effects, including anti-inflammatory, analgesic, and neuroprotective properties. This versatility facilitates product diversification in various industries. Companies are investing in research and development to create novel formulations and delivery methods for minor cannabinoids. This includes nano-emulsions, encapsulation technologies, and controlled-release systems to enhance bioavailability and efficacy. For example, in January 2022, CBDA + CBGA Tincture a new product was launched by Hometown Hero CBD. This 30ml tincture contains 600mg each of CBGA, CBDA, CBG, and CBD. Derived from hemp, the cannabinoids in this tincture comply with legal requirements across all 50 states in the USA. There is an increasing consumer preference for natural as well as plant-based remedies, which in turn is driving the demand for cannabinoid-infused products. This trend is particularly strong among younger demographics seeking alternatives to traditional pharmaceuticals. Evolving regulatory frameworks, particularly in regions like North America and Europe, are creating opportunities for legal market expansion. Regulatory clarity is crucial for market participants to navigate compliance and market entry.
Global Minor Cannabinoids Market: Key Datapoints
|
Market Value in 2023 |
US$ 17.8 Bn |
|
Market Value Forecast by 2034 |
US$ 42.3 Bn |
|
Growth Rate
|
8.2% |
|
Historical Data
|
2016 – 2022 |
|
Base Year
|
2023 |
|
Forecast Data
|
2024 – 2034 |
Increasing consumer interest in health and wellness products, coupled with the perceived therapeutic benefits of cannabinoids, is a major driver of market growth. Progressive cannabis legalization in various parts of the world, including the United States and parts of Europe, is expanding the addressable market for minor cannabinoids. Significant investments in research and development by pharmaceutical and biotechnology companies are accelerating product innovation and clinical trials. The market remains fragmented with opportunities for new entrants and niche players to introduce specialized products catering to specific consumer needs.
The COVID-19 pandemic initially disrupted supply chains and retail channels for minor cannabinoids products. However, the crisis also underscored the importance of health and wellness, leading to increased interest in natural remedies, including cannabinoids. As economies recover, the market is expected to rebound stronger.
The geopolitical tensions, such as the Russia-Ukraine conflict, have also affected global markets, including the minor cannabinoids sector. Fluctuating currency values, supply chain disruptions, and geopolitical uncertainty have impacted production and distribution channels. However, the long-term impact will depend on geopolitical developments and their influence on global trade and regulatory environments.
The minor cannabinoids market presents significant opportunities for growth and innovation, driven by evolving consumer preferences, regulatory advancements, and expanding research initiatives. Companies that can navigate regulatory complexities, invest in research and development, and respond to shifting consumer trends are well-positioned to capitalize on this emerging market. As the market matures, collaboration across sectors and regions will be crucial in unlocking the full potential of minor cannabinoids in various industries worldwide.
Global Minor Cannabinoids Market: Key Takeaways of the Report
- Cannabigerol (CBG) segment by product type is expected to grow at a CAGR of 6.7% in the minor cannabinoids market due to increasing research highlighting its potential therapeutic benefits, including anti-inflammatory, antimicrobial, and neuroprotective properties. As consumer awareness grows and regulatory environments become more favorable, there is heightened interest in CBG-based products for their diverse health applications, ranging from skincare to pharmaceutical formulations, driving sustained market demand and expansion.
- Pharmaceutical segment by application, leads the minor cannabinoids market with a significant revenue share of 35.8% owing to growing recognition of cannabinoids’ potential in therapeutic applications. Cannabinoids like CBD, CBG, and others show promise in treating conditions such as epilepsy, chronic pain, and anxiety disorders, backed by increasing clinical research and favorable regulatory developments. Pharmaceutical companies are investing heavily in cannabinoid-based drug development, driving market growth as they seek to capitalize on these compounds’ efficacy and market potential in addressing unmet medical needs.
- In 2023, Latin America is anticipated as fastest growing region in the global minor cannabinoids market due to evolving regulatory landscapes favoring cannabis legalization and cultivation. This shift is fostering a burgeoning industry infrastructure for cannabis extraction and product development. Additionally, increasing consumer acceptance of cannabinoid-based products for medicinal and wellness purposes is driving market expansion. With a vast potential consumer base and supportive regulatory frameworks, Latin America presents significant growth opportunities for companies seeking to enter or expand within the minor cannabinoids market.
Key Development:
- In December 2023, Rare Cannabinoid Company introduced Uplift Gummies infused with THC and THCV. These gummies combine the relaxing properties of Delta-9-THC with the energizing and appetite-controlling effects of CBD and THCV.
- In October 2022, High Tide Inc., a cannabis retailer, announced that its Colorado-based subsidiary, NuLeaf Naturals, had launched plant-based softgels and full-spectrum multicannabinoid oil in Manitoba. The products feature CBC, CBD, CBG, Delta-9 tetrahydrocannabinol (Delta 9), and CBN.
Browse Related Category Reports
Global Minor Cannabinoids Market:
- Aurora Europe GmbH
- BulKanna
- CBD. INC.
- Fresh Bros Hemp Company
- GCM Holdings, LLC (Global Cannabinoids)
- GenCanna.
- High Purity Natural Products.
- Laurelcrest
- Mile High Labs
- PBG Global
- Rhizo Sciences
- ZERO POINT EXTRACTION, LLC
- Other Industry Participants
Global Minor Cannabinoids Market
By Product Type
- Cannabigerol (CBG)
- Cannabichromene (CBC)
- Cannabinol (CBN)
- Cannabidivarin (CBDV)
- Tetrahydrocannabutol (THCB)
- Tetrahydrocannabivarin (THCV)
- Tetrahydrocannabiphorol (THCP)
- Others
By Application
- Pharmaceutical
- Pain Management
- Mental Health
- Sleep Disorders
- Anti-inflammatory
- Others
- Nutraceuticals
- Cosmetics and Personal Care
- Food and Beverages
- Others
By Region
- North America (U.S., Canada, Mexico, Rest of North America)
- Europe (France, The UK, Spain, Germany, Italy, Nordic Countries (Denmark, Finland, Iceland, Sweden, Norway), Benelux Union (Belgium, The Netherlands, Luxembourg), Rest of Europe)
- Asia Pacific (China, Japan, India, New Zealand, Australia, South Korea, Southeast Asia (Indonesia, Thailand, Malaysia, Singapore, Rest of Southeast Asia), Rest of Asia Pacific)
- Middle East & Africa (Saudi Arabia, UAE, Egypt, Kuwait, South Africa, Rest of Middle East & Africa)
- Latin America (Brazil, Argentina, Rest of Latin America)
Consult with Our Expert:
Jay Reynolds
The Niche Research
Japan (Toll-Free): +81 663-386-8111
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United Kingdom: +44 753-710-5080
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Email: askanexpert@thenicheresearch.com
Website: www.thenicheresearch.com
Cannabis
Global Agricultural Textiles Market Size To Worth USD 25.02 Billion By 2033 | CAGR of 4.70%
New York, United States , July 23, 2024 (GLOBE NEWSWIRE) — The Global Agricultural Textiles Market Size is to Grow from USD 15.8 Billion in 2023 to USD 25.02 Billion by 2033, at a Compound Annual Growth Rate (CAGR) of 4.70% during the projected period.
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Products made of agricultural textiles, or agro textiles, increase productivity, shield farmers from harmful chemicals and pesticides, and keep soil from drying out. The word “agro-textile” has been used recently to refer to materials used in horticulture and agriculture that are knitted, woven, and non-woven. Reducing the use of hazardous pesticides and herbicides promotes a sustainable farming culture and is also good for the environment. Agricultural textiles have remarkable mechanical potential, environmental resistance, simplicity of processing, and durability features that can enhance the safety, quantity, and quality of agricultural products. Textile textiles have been utilized in agriculture for a very long period. Most textile materials are woven or nonwoven in manufacture and are made of synthetic materials in a variety of decompositions. Furthermore, future expansion in the worldwide agricultural textiles market is anticipated to be driven by the rising demand for agricultural products. Any agricultural commodity or product, whether raw or processed, that is derived from livestock is referred to as an agricultural product. Agricultural textiles are used to protect crops from insects and birds, as well as to provide shade for plants, which increases crop yield. Furthermore, going forward, the market for agricultural textiles is expected to be driven by the rise in sustainable agriculture methods. Sustainable farming operations employ socially and environmentally conscious farming methods to increase crop output over the long term, reducing adverse environmental effects, and fostering equitable working conditions for farmers. However, increased raw material costs substantially impede the expansion of the worldwide agricultural textile industry. The rising cost of raw materials is creating challenges for the sector.
Browse key industry insights spread across 193 pages with 112 Market data tables and figures & charts from the Report on the “Global Agricultural Textiles Market Size, Share, and COVID-19 Impact Analysis, By Product (Woven, Knitted, Non-Woven, and Others), By Material (Nylon, Polyethylene, Polypropylene, Polyesters, and Others), By Application (Agriculture, Horticulture, Forestry, Aquaculture, and Others), and By Region (North America, Europe, Asia-Pacific, Latin America, Middle East, and Africa), Analysis and Forecast 2023 – 2033.”
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The knitted segment is anticipated to hold the greatest share of the global agricultural textiles market during the projected timeframe.
Based on the product, the global agricultural textiles market is divided into woven, knitted, non-woven, and others. Among these, the knitted segment is anticipated to hold the greatest share of the global agricultural textiles market during the projected timeframe. The fabric’s multiple applications such as wind control, hail protection, and bird netting are what provide the majority of its revenue. The variety of textiles produced by knitting techniques and the ease of handling knitted fabric has led to a growth in demand for the product. Non-woven fibers can be produced by a variety of techniques, such as chemical bonding, thermal fusion, and mechanical entanglement. A web is created throughout manufacture, adding first mechanical strength and later other properties according to the fiber’s intended use.
The polyethylene segment is expected to grow at the fastest pace in the global agricultural textiles market during the projected timeframe.
Based on the material, the global agricultural textiles market is divided into nylon, polyethylene, polypropylene, polyesters, and others. Among these, the polyethylene segment is expected to grow at the fastest pace in the global agricultural textiles market during the projected timeframe. Thermoplastic polymer polyethylene has a volatile crystalline structure and a wide range of uses, depending on the kind. One of the most widely used materials for agricultural textiles is polyethylene, which is somewhat more expensive than polypropylene. Farm products are covered in HDPE fabrics, which shield them from UV radiation and inclement weather. HDPE Yarns are a useful foundation material for applications including braiding, twisting, and weaving. Technically, they are resistant to both alkalis and acids.
The aquaculture segment is predicted for the highest revenue share in the global agricultural textiles market during the estimated period.
Based on the application, the global agricultural textiles market is divided into agriculture, horticulture, forestry, aquaculture, and others. Among these, the aquaculture segment is predicted for the highest revenue share in the global agricultural textiles market during the estimated period. The demand for seafood is rising, and this has led to an increase in aquaculture and the growth of the fishing net industry. Other industries that have benefited from this growth include nutraceuticals, pharmaceuticals, and cosmetics. The crops that grow under shade nets are chosen depending on how well they tolerate light. They also help to reduce damage from excessive heat and increase agricultural yield in the summer. They are used in a variety of procedures, such as floriculture, nursery operations, and vermicomposting.
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Asia Pacific is expected to hold the largest share of the global agricultural textiles market over the forecast period.
Asia Pacific is expected to hold the largest share of the global agricultural textiles market over the forecast period. The region’s noteworthy share can be attributed to the rising demand for agricultural products resulting from changing consumer preferences and population expansion. Due to the significant demand generated by the developing economies of China and India. In addition, China is the biggest consumer since it uses a lot of these textiles for its agricultural and aquaculture sectors. These uses include using nets, mulches, and storage bags to save aquatic life and crops.
North America is predicted to grow at the fastest pace in the global agricultural textiles market during the projected timeframe. Research into more sustainable agriculture practices and consumer interest in organic products will both rise. China is the top region in terms of the agricultural textile market. The region’s expanding aquaculture sector, which generates fish oils, shell meats, and other products, as well as increased domestic consumption, accounts for this development. Policies that support aquaculture at the federal level will drive up demand for these textiles.
Competitive Analysis:
The report offers the appropriate analysis of the key organizations/companies involved within the global market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market. Major vendors in the Global Agricultural Textiles Market include Beaulieu Technical Textiles, Belton Industries, Meyabond, Capatex, Neo Corp International, Garware Technical Fibres, HUESKER Synthetic, Maccaferri, Koninklijke Ten Cate, DuPont de Nemours Inc., Leggett & Platt, SRAM & MRAM Group, Bonar Technical Fabrics, Visaka Industries Limited, and Others.
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Recent Developments
- In June 2024, Beaulieu Technical Textiles highlighted performance and sustainability when introducing their Recover and Recover Pro ground covers at GreenTech Amsterdam 2024. Recover uses recycled materials to reduce CO2 emissions and increase durability, while Recover Pro uses volcanic lava rock to improve plant health and water management. The line provides longevity, cannabis, and UV protection.
Market Segment
This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the Global Agricultural Textiles Market based on the below-mentioned segments:
Global Agricultural Textiles Market, By Product
- Woven
- Knitted
- Non-Woven
- Others
Global Agricultural Textiles Market, By Material
- Nylon
- Polyethylene
- Polypropylene
- Polyesters
- Others
Global Agricultural Textiles Market, By Application
- Agriculture
- Horticulture
- Forestry
- Aquaculture
- Others
Global Agricultural Textiles Market, Regional Analysis
- North America
- US
- Canada
- Mexico
- Europe
- Germany
- Uk
- France
- Italy
- Spain
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia Pacific
- South America
- Brazil
- Argentina
- Rest of South America
- Middle East & Africa
- UAE
- Saudi Arabia
- Qatar
- South Africa
- Rest of the Middle East & Africa
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