How China’s Rising Cosmetics Market for Men Could Be a Big Boost for CBD

August 01, 2019 - Baystreet.ca


Once seen as a taboo for men in China, demands from younger generations have caused a recent boom in the male cosmetics market. Meanwhile, there’s also been a dramatic rise in demand from Chinese pharma groups to also bring in hemp-based products that contain cannabidiol (CBD), such as those currently being marketed in North America by The Yield Growth Corp. (CSE:BOSS) (OTC:BOSQF), Green Growth Brands (CSE:GGB) (OTC:GGBXF), Organigram Holdings (NASDAQ:OGI)(TSX.V:OGI), Aurora Cannabis (NYSE:ACB)(TSX:ACB), and Charlotte’s Web (CSE:CWEB).

According to a report from Alibaba Group Holdings, sales of male skincare products in China designed increased between 51-114%, from a variety of forms including cleansers, facial masks, cosmetics, and lotions and creams. Combining CBD into the mix could eventually open the door for producers such as The Yield Growth Corp. (CSE:BOSS) (OTC:BOSQF) that recently announced a deal for the global rights to 8 cannabis product topical formulas for men, with Antler Retail that includes hair pomade, beard oil, shaving cream, deodorant and 4 essential oil colognes.

The potential for cannabis beauty products has already been projected for big things. Back in February, analysts at Piper Jaffray said they could see further growth in this industry which could boost the overall CBD market to be worth up to $100 billion.

This boost could go on the help not only help The Yield Growth Corp. (CSE:BOSS) (OTC:BOSQF), which now has multiple product lines it’s bringing to market including Urban Juve Wellness, and Wright & Well.

JOCKEYING FOR CBD POSITIONS

The name Charlotte’s Web (CSE:CWEB) became synonymous with CBD in 2013, after major news outlets showcased how the company’s oils helped drastically reduce epileptic seizures of a young child. Now the company’s expanded to 12 CBD oil products, four capsule products, four topicals, an isolate, and 12 products for dogs. However the company has also hinted at cosmetic products on the way.

Through its Seventh Sense line, Green Growth Brands (CSE:GGB) (OTC:GGBXF) has opened more than 50 new CBD shops so far this year, and has also secured deals with American Eagle Outfitters and other major retailers to carry their products.

In advance of what could be a series of new CBD-infused products, Organigram (NASDAQ:OGI)(TSX.V:OGI) recently secured an additional 60,000 kg of hemp to be harvested in 2019. The new agreement with 1812 Hemp gives Organigram another source of hemp for CBD isolate production.

Through a partnership with the UFC, Aurora Cannabis (NYSE:ACB)(TSX:ACB) is set to test the effectiveness of CBD on athletes to treat aches and pains. The research project is set to conduct clinical trials on the use of CBD, with the aim of developing a line of hemp-derived CBD topical treatments targeting elite athletes.

Recently announcing a breakthrough of its own ongoing research and development, The Yield Growth Corp. (CSE:BOSS) (OTC:BOSQF) advanced development of the cannabis sativa (hemp) root, gaining research data that indicated high concentrations of therapeutic compounds. With its patent pending technology, Yield Growth has innovatively developed this hemp root oil process by sequestering the target compounds more efficiently, resulting in higher yields needed for increasingly larger production orders.

HOW CHINA COULD ENTER THE MIX

Legality surrounding CBD in China is still in question, whereas clarity surrounding hemp-infused products in the United States is on the rise. Set for use in its Urban Juve Wellness, and Wright & Well brands, Yield Growth developed a proprietary formula derived from fully legal hemp root oil for its products—unlike competitors’ formulas which don’t use the root.

Despite its current prohibition on the psycho-active cannabinoid THC, China has cultivated cannabis for thousands of years—including for textiles, hemp seeds, oils, and traditional medicine.

Today, two of China’s 34 regions are quietly leading a CBD production boom. Already local businesses have been given permission to extract cannabidiol in southern China, with Hanma Investment Group becoming the first in 2017.

Urban Juve’s hemp root oil products are now available through e-commerce sales in China, the US, Japan, South Korea and Germany through the popular WeChat app. The product line recently also became available in Greece and Cyprus, while in North America, the brands are signed on to sell in over 110 retail locations.

The Urban Juve line of products continues to grow, with the latest announcement of its new line of CBD-infused skin care products, dubbed Urban Juve CBD Skin Essentials. The full-spectrum CBD products is expected to officially launch in the fall, using Urban Juve’s proprietary hemp root oil to maximize skin renewal. Urban Juve Skin Essentials will launch with two initial products: CBD Face Oil, CBD Facial Serum.

Now through a deal with Antler Retail Inc., The Yield Growth Corp. (CSE:BOSS) (OTC:BOSQF) will provide 8 new CBD products designed for men. By providing packaging, marketing, manufacturing and distribution services to Antler, Yield Growth anticipates it will generate additional revenues through the LOI.

The Californian-based Antler is developing an international brand. The men’s hemp and CBD personal care line is already being marketed for international distribution.

FURTHER NEW CBD DEVELOPMENTS

Coming soon to American golf courses, Green Growth Brands (CSE:GGB) (OTC:GGBXF) has a licensing agreement with the Greg NormanTM Brand to develop a line of CBD-infused personal care products designed for active wellness. The company is also making major inroads for its Seventh Sense line of CBD products, through an impressive rollout of stores in malls across the continent that has as recently as June surpassed 50 opened stores.

Having secured a sizeable amount of hemp product through a deal with 1812 Hemp, Organigram (NASDAQ:OGI)(TSX.V:OGI) is now gearing up for the upcoming edibles market. Having developed a dissolvable cannabis powder mix that can be added to any beverage, Organigram believes its dry, tasteless powder has potential to be a consumer favorite. The product was a result of 18 months of lab research leading to the discrete additive breakthrough.

Aurora Cannabis (NYSE:ACB)(TSX:ACB) hopes that its research with the UFC and its athletes also leads to new products. Volunteer athletes from the UFC will take part in research that will be carried out in Las Vegas, with the aim of discovering the specific, quantifiable effects of CBD on treating inflammation, pain, and recovery periods after injuries.

It was research from Charlotte’s Web (CSE:CWEB) in 2013 that somewhat kicked off CBD’s mainstream rise in acceptance. Today, Charlotte’s Web hemp CBD topical products are sold across the country, with the company recently announcing their expansion to 1,350 Kroger Stores across 22 states.

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