Connect with us
“Black

Sponsored

Water-Soluble CBD: A Game Changer for Consumer Packaged Goods

Published

on

The following content is sponsored by Trait Biosciences.

water soluble CBD products

Water-Soluble CBD: A Game Changer for Consumer Packaged Goods

Cannabidiol (CBD)—a major non-psychoactive compound found in the cannabis plant—is quickly becoming a mainstream product. Due to mounting evidence of its health benefits, it is increasingly used as a key ingredient in consumer packaged goods such as food, beverages, and health and wellness products.

This burgeoning market is estimated to grow from $5 billion in 2019, to $23.7 billion by 2023. However, major challenges with existing products need to be addressed, such as poor bioavailability, or the rate at which CBD is absorbed into the bloodstream.

Today’s infographic from Trait Biosciences explores the importance of a truly water-soluble CBD formulation in addressing this challenge and many more.

The Importance of Water-Soluble CBD

When CBD is extracted from the cannabis plant, it takes an oil-based form. Like any oil, it is hydrophobic, meaning it will not dissolve in water.

As a result, CBD oil resists absorption into the bloodstream—with 96% of it being flushed from the body without ever having an active effect.

Nanoemulsion is the most common method of creating CBD-infused products. The process involves pulverizing cannabinoids into nano-sizes, and combining them with an emulsifier and a carrier oil, in an attempt to create a water-soluble CBD.

However, despite many industry players’ claims, nanoemulsified CBD is not water-soluble. In fact, water-compatible is a more accurate description. Nanoemulsified CBD also has associated risks, including:

  • Risk of DNA damage, cytotoxicity, and immune system response
  • Nanoparticles have been known to accumulate in organs, causing other health concerns
  • Leads to unpredictable experiences

Trait Biosciences’ breakthrough technology, Trait Distilled™, avoids these issues.

An Entirely Natural Process

Through Trait Biosciences’ proprietary glycosylation process, a sugar molecule is attached to the cannabinoid—a process that naturally occurs in the body as it metabolizes different foods.

The benefits of the Trait Distilled™ process will be a game changer for cannabis, hemp, and CPG industries, due to its:

  • Greater bioavailability
  • Perfectly clear solution
  • Faster onset time
  • Indefinite shelf stability
  • Better taste
  • Lack of emulsifiers, surfactants, or nanotechnologies
  • Organic certification potential
  • Odor-free properties

Trait’s Distilled™ technology results in pure, and natural water-soluble terpenes and cannabinoids that are entirely safe for commercial use.

The Impact on Consumer Packaged Goods Industries

The adoption of this new technology will prove extremely lucrative across CBD-infused CPG product categories. Many major companies are already capitalizing on the potential of CBD-infused products, such as Walmart, Whole Foods, and Ulta Beauty.

Food

Among products that new and existing consumers would consider trying, edibles—such as CBD-infused baked goods and chocolate—rank the highest.

CBD as a functional ingredient and a mood enhancer is blurring the lines between pharma and food, with health benefits such as:

  • Plant-based
  • Keto-friendly
  • Anti-inflammatory
  • Full of Omega-3
  • Stress and anxiety relief

The global functional food market is projected to grow from $250 billion to $440 billion by 2022, with CBD-infused food products playing a significant role in the growth of this market.

Beverages

The global functional beverages market will be worth an estimated $278 billion by 2020, with CBD-infused beverages becoming a significant sub-segment.

Taste is the #1 consumer driver, and biggest roadblock for CBD-infused beverages. Water-soluble CBD will eliminate the unpleasant aftertaste associated with CBD-infused beverages that are currently on the market.

Health and Wellness

Health and wellness is emerging as a new reason for cannabis consumption. With Unilever now entering the space with CBD-infused ice cream, the floodgates will open for other major companies to follow suit.

Truly water-soluble CBD is a revolutionary technology that will kickstart the growth of CBD products in the CPG sector—and unlock the true potential of the cannabis plant.

Trait Biosciences is leading this biotechnology innovation, by creating purer and safer cannabis products for everyone.

Subscribe to Visual Capitalist

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Comments

Sponsored

Forex Market: Unlocking Opportunities for Investors

What are the advantages of the forex market? Individual investors can access this expansive, global market—largely unknown to many.

Published

on

Forex Market: Unlocking Opportunities for Investors

In 2019, the global foreign exchange market (forex) was valued at a jaw-dropping $2.4 quadrillion.

In fact, this is equal to more than 50 times China, Japan, Germany, India and the U.S.’s economic output combined. Institutional investors, such as investment banks, pension funds, and large corporations have typically dominated this space, but there are avenues for individuals to enter the market as well.

This infographic from Compare Forex Brokers breaks down the world’s most interconnected financial market, and how individual investors can start trading.

The Forex Market: A Global Landscape

Across the forex market, 170 major, minor, and exotic currency pairs can be traded as contracts for difference (CFDs). A CFD enables you to speculate on whether the price of an asset will rise or fall.

Here, trades are conducted on over the counter (OTC) markets—non-centralized markets made up of a network of participants. This is different from traditional markets, such as the S&P 500 and the Nasdaq, which operate on formal, centralized exchanges.

While the forex market is by nature, decentralized, these core regions show where forex transactions are most concentrated by market participants including banks, commercial businesses, or individual investors.

Globally, the majority of forex trading takes place within the following hubs.

Forex Trading Centers (2019)CountryShare of Global Over the Counter (OTC) Forex Turnover
1UK43.1%
2U.S.16.5%
3Singapore7.6%
4Hong Kong7.6%
5Japan4.5%
6Switzerland3.3%
7France2.0%
8China1.6%
9Germany1.5%
10Australia1.4%

Source: BIS

The UK accounts for over 43% of global forex trading, averaging $2.7 trillion daily according to the 2019 Triennial Central Bank Survey by the Bank for International Settlements. London’s geographic location between the U.S. and Asia makes it an optimal forex trading centre—a trend that has held strong over the last 50 years.

With forex trading in the U.S. jumping over 50% in the last decade, the U.S. is the next most active forex market. Meanwhile, averaging $633 billion in trading volumes in 2019, Singapore is Asia’s largest forex trading center, with Hong Kong following close behind.

The Top Seven Currency Pairs

What are the most highly-traded currency pairs?

Overall, 68% of global forex trading falls into seven major currency pairs.

 Top Seven Currency PairsPercentage of Total
1United States Dollar vs Euro24.0%
2United States Dollar vs Japanese Yen17.8%
3United States Dollar vs Great British Pound9.3%
4United States Dollar vs Australian Dollar5.2%
5United States Dollar vs Canadian Dollar4.3%
6United States Dollar vs Chinese Yuan3.8%
7United States Dollar vs Swiss Franc3.6%

Source: BIS

Currency prices are impacted by factors including inflation, international trade, political stability, among other macroeconomic factors.

Breaking Down Institutional and Retail Trading

While commercial and central banks, hedge funds, and investment managers make up most of the forex market, only 5.5% are individual investors.

Importantly, they differ in a few key ways.

Institutional Forex TradingRetail Forex Trading
- Buy and sell the physical currency


- Interdealer market: Large institutions trade on an interdealer market, which is a non-centralized network of dealers


- Less formal: Often trades are conducted by phone, email or instant message.


- Non-transparent: Execution prices and buy/sell orders are not visible to the market.
- Buy and sell contracts for difference (CFD)


- Contracts for Difference (CFD): CFDs allow traders to speculate on the price of an underlying asset. Traders do not own the underlying asset.


- Long and Short Trades: Traders can take a long or short position:


- Long position: buying a CFD with the expectation the asset's market price will increase.


- Short position: selling a CFD with the expectation the asset's market price will decrease.

For various reasons, retail forex trading increases in popularity year after year. However, before diving in, it is important to know the stakes involved in this speculative market.

Understanding the High Risk of Forex Trading

Retail forex trading is, at is core, very risky.

In 2019, 71% of all retail forex trades lost money. One explanation is the highly leveraged nature of the market—many investors trade using borrowed money. But while trading with leverage can magnify losses, it also applies to gains.

Key Benefits of the Forex Market

While there is risk inherent in the market, what are some of the advantages in forex trading?

  1. Low transaction costs: No exchange or regulatory fees. Overall trading costs are low with both commission and no commission pricing structures available.
  2. High liquidity: Along with being the largest market globally, it is also the most liquid with $6.6 trillion in daily trading volume.
  3. 24-hour market: Trading is not confined to limited hours or time zones.
  4. Leverage: Forex brokers offer retail traders leverage which allows the to increase their exposure

Unlike equities, currency trading is all about relativity. A currency can depreciate overall, but can also appreciate relative to a currency that has depreciated even more.

Connect to New Markets

While big gains are possible, many trades lose money, but regulatory improvements have helped build trust in the market.

Meanwhile, multiple digital platforms provide a link to global currencies, allowing retail forex traders to enter the market and trade from any location. For those comfortable taking more risk, currency markets offer opportunities with outsized potential.

Subscribe to Visual Capitalist

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading

Sponsored

Investing in the Impending E-commerce Future

E-commerce is already massive, but COVID-19 has proven to be an unexpected catalyst in driving the use of digital marketplaces.

Published

on

Investing in the Impending E-commerce Future

The rise of e-commerce has been a long time coming, but the market’s progressive size and impact has caught many by surprise.

Tied initially to the advent of the internet and the Dot-com boom, online shopping saw companies like Amazon and eBay become well-known billion-dollar names. Digital commerce was a big market, but only for a few players.

Fast forward to today, and more companies than ever are launching their own marketplaces or embracing online retail. The shift was happening before COVID-19, but the pandemic has sped things up dramatically.

Today’s infographic from eToro highlights the increasing relevance of e-commerce in the modern economy and how investors can enter the market.

The Digital Marketplace Footprint

How big is modern e-commerce? While multiple sectors are experiencing their own online revolutions, retail is leading the way.

Total global retail e-commerce sales already numbered $3 trillion in 2018, and are expected to more than double to $6.5 trillion in 2023.

The increasing ease and security of online payments have encouraged many businesses to embrace B2C sales, especially in light of a pandemic that forced many brick and mortar stores to close. But less documented is the boom of digital marketplaces, which accounted for 57% of global online retail sales in 2019.

The biggest marketplaces are well-known leaders like Amazon and China’s Taobao and Tmall, but more and more companies are capturing a slice of the online distribution market.

Largest U.S. MarketplacesGross Merchandise Value
Amazon$339B
Ebay$90B
Walmart$49B
Wish$10B
Houzz$9B

Source: DigitalCommerce360

Walmart and Best Buy have both launched marketplaces for third-party product sales, with Walmart recently seeing a 79% increase of e-commerce sales alone.

The E-commerce Transformation

The growth of e-commerce in retail by itself is staggering, but its growing availability in other sectors is the bigger story.

Groceries and restaurants are a key marker, with home-delivery of takeout, groceries, and ready-to-prepare meal-kits all ordered digitally. Companies like Doordash, Just Eat, and Uber Eats have experienced massive growth, with Doordash positioning for a 2020 IPO, while grocery retailers including Walmart and Safeway are embracing delivery sales.

Online services are likewise rising in popularity, including everything from streaming services to virtual meetings, healthcare and assistance. Just as with the retail sector, e-commerce is making its way into sectors previously thought to be “un-digitizable.”

That type of transformation is usually slow, but the result of COVID-19 restrictions forcing thousands of businesses to go digital sped up the schedule. U.S. e-commerce penetration experienced 10 years of growth in the first quarter of 2020 alone.

YearU.S. E-commerce Penetration
201611.8%
201713.2%
201814.4%
201916.0%
2020 (Q1)33.0%

Source: McKinsey

A Widening Landscape for Future Growth

It might be hard to believe, but even with the headway made by e-commerce over the past year, the industry is slated for massive future growth.

One big reason is the rising demand for digital goods and services. As the global pandemic has reimagined virtual business, many companies have also come face-to-face with the decreased costs of operating remotely, while retailers are seeing higher margins by cutting out the distributor (or the lease).

At the same time, another massive shift is the increase in technological capabilities. Alongside the rollout of 5G, blockchain, and improved AI, companies are looking for tech to streamline their processes and keep customers online where possible.

That includes the use of drones for delivery by Amazon, augmented and virtual reality for product testing by Ikea and Wayfair, and improved payment platforms by Shopify.

While 100% online shopping is still a ways away from becoming a reality, the wave of e-commerce is set to continue rising.

Subscribe to Visual Capitalist

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading

Subscribe

Join the 220,000+ subscribers who receive our daily email

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Popular