Cannabinoids Beyond THC And CBD Pique Market Interest
by Andrew Ward
October 12, 2020
When it comes to cannabis compounds, THC and CBD are just the tip of a massive iceberg.
Hundreds of compounds go into a plant strain, and many are now being tapped for their healing potential. While some are hitting shelves now, insiders believe the boom will occur sometime down the line.
That said, the buzz over the compounds is already swirling in the cannabis community.
Terpenes — known for producing the aroma, flavor and some effects in each strain — are projected to have a modest global market value of $730 million by 2025, representing a CAGR of 4.7% during the period.
Meanwhile, additional cannabinoids are starting to receive attention in many cannabis products.
Are Cannabinoids Worth Market Buzz?
“For large portions of the public, CBD is still new,” said Laura Fuentes, CEO Green Roads CBD products. “More and more people are just beginning to discover its benefits.”
As such, the room for comprehending additional compounds may not presently exist and public awareness is just one point of contention. But cost is another driving force.
Dennis O’Neill, co-founder and CIO of California-based biotech startup BIOMEDICAN elaborated.
“[CBD and THC] are known because plants can produce them in large quantities, which makes them significantly more affordable,” he said.
On the other hand, less prevalent cannabinoids can become challenging to produce at an affordable rate due to their availability. Even if the market buzz was warranted, the ability to create and sell at a fair price remains elusive for many compounds.
Which Cannabinoids Pique The Most Market Interest?
A range of cannabinoids pique the interest of the market, Benzinga learned.
There is optimism in additional cannabinoids, such as CBG, for its potential to address pain and inflammation, Fuentes said. Green Roads also offers products containing CBN, which is “a cannabinoid with special properties that make it perfect for our sleep formula,” she added.
Another cannabinoid on the rise is Delta-8-THC, which is gaining traction for its ability to produce THC’s effects without the paranoid or anxious feelings that come with overconsumption.
“Delta 8 is definitely leading the way today as the hottest and newest cannabinoid to hit the market, due to its immediate semi mind-bending, uplifting feeling of relaxation, body sensations, and clear-headedness,” said Nick Warrender, CEO of Lifted Made, a company producing products from the cannabinoid.
O’Neill noted that market buzz might appear muted in some cases. This is particularly true of cannabinoids that aren’t able to be studied at this time.
“There is no possibility to study them due to availability,” he said of numerous plant cannabinoids. “Once it will be possible to produce them, they will be studied and most likely will get very popular.”
Expanding Beyond Cannabis
The expansion beyond cannabis products is already underway and may go further in time.
Lifted Made’s Warrender noted that CBD is already found in products for pets to cosmetics.
“We’ll continue to see cannabinoids used as a ‘superfood’ type ingredient across many industries where there’s benefit to the user,” he forecasted.
Meanwhile, Grace Kaucic, senior communications manager for Bluebird Botanicals, sees additional compounds likely expanding into other markets in time.
Such compounds could serve as a driver in the hemp and marijuana space, Kaucic explained.
“As CBD becomes more of a household staple, innovative brands will likely be turning to these lesser-known cannabinoids to continue creating novel and groundbreaking wellness products,” she said.
However, producers will need to adhere to cannabis regulations and the sector it plans to enter before being marketed.