- Analysts project that the traditional nutraceutical health and wellness market for CBD products will reach $6.4 billion by 2025
- As ETST widens its sales efforts, analysts cite increases of CBD availability in diverse retail channels
- ETST has entered new distribution deals with CannaBiz and Desert Sun Distribution, providing more opportunities for its CBD products
Earth Science Tech Inc. (OTCQB: ETST), a biotech company focused on the nutraceutical and pharmaceutical fields, is marketing its full-spectrum CBD products to a broader retail audience, such as large chains, health food stores and independent pharmacies. This strategic move comes as five Cowen & Co. analysts project that CBD consumer products are winning diverse shelf space in locations that include online sites, specialty outlets such as Sephora and fine department stores, including Neiman Marcus (http://ibn.fm/8GxyT).
In Cowen’s ‘Collective View of CBD’, five analysts collectively project that CBD sales will reach $16 billion in the United States by 2025. Within that total, they estimate that the leading submarket consists of traditional health and wellness nutraceuticals at $6.4 billion. This projection bodes well for ETST as it works to widen its reach to chain retailers, independent pharmacies and others. One reason independent pharmacies like to sell CBD oils is because the product offers high margins and differentiation from larger competitors, such as Walgreen’s and CVS.
Through agreements with CannaBiz and Desert Sun Distribution, ETST plans to broaden its sales of CBD products, including full-spectrum cannabinoid oil, to large chains, health food stores, pharmacies, chiropractors, dispensaries, health care practitioners, athletic clubs and clinics throughout the country (http://ibn.fm/ymIfU), and this move is only the beginning for the biotech company. “The distribution agreements with CannaBiz and Desert Sun Distribution, while important, are only a fraction of the opportunities we see for our CBD products,” ETST Chief Sales Officer David Burbash stated in a news release.
In addition to the $16 billion estimate, the Cowen & Co. analysis projects that CBD products in the U.S. will reach 10 percent of U.S. adults. The report noted that, in a survey of 2,500 adults, approximately 6.9 percent of Americans already use CBD as a supplement (http://ibn.fm/PNrok). The survey also found that CBD use is most common among consumers aged 18-34. Tinctures (or liquid extracts) accounted for 44 percent of the market, followed by topicals at 26 percent, capsules at 22 percent and beverages at 19 percent (Note: figures total more than 100 percent).
For more information, visit the company’s website at www.EarthScienceTech.com
NOTE TO INVESTORS: The latest news and updates relating to ETST are available in the company’s newsroom at http://ibn.fm/ETST