The market for CBD products in the USA is already growing rapidly and cannabis companies like Veritas Farms Inc. (OTC: VFRMD) demonstrate the huge potential of the CBD industry. A new report on the topic suggests massive growth over the next ten years.
The cannabis market volume this year is expected to be between US$ 1.1 and 1.3 billion, and projected to increase tenfold over the next five years. The total volume is expected to grow to US$ 10.3 billion, corresponding to an average growth rate of 54 percent per year.
One US company has shown impressive growth over the last year. Veritas Farms Inc, a producer and distributor of high-quality CBD products, generated more than US$ 2.9 million in total revenue in Q2 2019. That is a 500% increase over Q2 2018. The company’s gross profits reached US$ 1,523,413 and, thanks to great results, managed to reduce liabilities by over US$ 1.3 million.
Veritas Farms Inc (OTC: VFRMD) is focused on transparency and delivering high quality products. They recently released QR code packaging that customers can use to check the products’ quality on their smartphones. Veritas’ nine product categories come from their 140-acre industrial hemp farm and manufacturing facility based in Pueblo, Colorado.
The CBD market in the USA has so far been dominated by uncertainty
In a recent letter to Congress, the industry called for the rapid creation of a reliable legal framework for CBD products. The FDA had previously indicated that it could take five years to create such a regulatory framework. This is decidedly too long for the industry. High hopes for the CBD market come from established companies such as Altria and Constellation Brands. Both companies have built up significant positions in Canadian producers. Constellation Brands has a stake in Canopy Growth, while Altria has a stake in the Cronos Group. The investment bank Stifel Nicolaus has called Cronos Group “the new King of the North”. The reason for this is the CA$ 2 billion in cash, as well as the backing of Altria.
According to analysts, these advantages would enable Cronos to tackle the potential global market for cannabis of US$ 200 billion. For these reasons, analysts have upgraded Cronos’ shares to “buy”.
As the Canadian market of legalized cannabis products is growing, expectations are high, especially with a view to possible legalization in the USA.
Veritas Farms Inc is one US cannabis company that developed rapidly and it will most probably become a dominant player in the CBD sector. The company was formerly known as SanSal Wellness Holdings, Inc. and changed its name to Veritas Farms, Inc. in February 2019.
The company markets and sells products under its Veritas Farms brand and manufactures private label products for distributors and retailers. Its products include vegan capsules, gummies, tinctures, lotions, salves, vape oils, and oral syringes.