Lack of Concentration in CBD Market

  • Market leader in CBD space is Charlotte’s Web Holding with $40m in revenue
  • Brightfield Group Estimates that CBD Market Size was $591m in 2018

Market Leader Charlotte’s Web Only Represents 6.7% of CBD marketplace; prime opportunity for consolidation.

HBS considersthe first stage of consolidation generally begins with a single start-up or with a monopoly emerging from a newly deregulated or privatized industry. The nascent CBD industry falls within this classification

  • When an industry is ready to begin consolidation, the combined market share of the three largest companies drops to between 30% and 10%, as competitors quickly arise to create the frontier of industry consolidation.
  • Based onthe legalization of CBD in the US combined with the size of the largest players in the CBD market, the collective CBD industry is at Stage 1 of the HBS scale, and prime for rapid consolidation. BioHemp International strives to be the market front runner executing this rollup strategy