The private capital market for CBD is currently booming whilst some of the UK’s biggest brands are seeing an average of 30 per cent drop in sales.
The CBD market has switched to asset-light business models with strong scaling and global expansion opportunities rather than brands and companies with little revenue.
A number of the UK’s biggest CBD brands are floundering with sales averaging a 30 per cent drop, however, the private capital market for CBD is looking up. Alphagreen has raised £2.4m at £12.4m, up from £6.1 million last year and Nordic Oil raising at €89m valuation on Seedrs.
CBD brands experiencing significant loss of value include Love Hemp which has seen its share price down 50 per cent since March), Sativa Wellness which has been down 23 per cent over the last three months, Kanabo down 29 per cent, MGC Pharma down 45 per cent and Oxford Cannabinoid Tech 32 per cent.
Alphagreen beats targets
Alphagreen has beaten its market targets since its launch in October 2019.
Co-founder and CEO of Alphagreen, Alexej Pikovsky, commented: “Consumer interest in CBD products continues to thrive as awareness, understanding and trust in the proven benefits of CBD builds.
“Some of the biggest brands are struggling but for private capital-funded companies like Alphagreen, the CBD market sector is booming and is now one of the fastest-growing industries in the world. In fact, new research has valued UK sales of CBD products at £450m. The UK is the second biggest market for CBD products, only behind the USA and its massive population of 328 million. And our share of the UK and the global market continues to grow and thrive. We are going from strength to strength because of how we connect shoppers, brands and retailers in a unique mutually beneficial relationship within the wellness and beauty space.
“Nowhere has a wider choice of quality CBD products than our marketplace at Alphagreen. Consumers have access to a huge choice of trustworthy and effective CBD products; manufacturers and brands can reach a vast marketplace of customers and retailers benefit from the wholesale channel, where they can be guided and supported in growing their own businesses. The wholesale channel includes access to Alphagreen Intelligence, the most comprehensive CBD intelligence tool.
“The business intelligence system incorporates a database of more than 3,000 CBD products and combines data from multiple sources including website traffic, product reviews, social listening and Google search analytics. In short, it provides retailers with all the knowledge they need to be powerful and successful in the flourishing CBD, health and wellness sector.”
Revenue from sales across the Alphagreen market place shot up 450 per cent in the first year alone.
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