New CBD Global Study Shows Xebra Brands Poised for Growth
Earlier this month we reported that Xebra Brands Ltd. (CNSX: XBRA) has obtained the first-ever dauthorization to commercialize cannabis products in Mexico. This historic approval by the Mexican Health Regulatory Agency (COFEPRIS) marks a significant milestone for Xebra Brands and the cannabis industry at large. The authorization allows Xebra’s wholly owned subsidiary, Desart MX, SA de CV (Xebra Mexico), to engage in the full spectrum of cannabis activities, including cultivation, processing, and sale of low-THC cannabis products. This positions Xebra Brands as a first-mover in Mexico’s nascent cannabis market, offering them a substantial competitive edge.
Simultaneously, the global outlook for cannabidiol (CBD) is exceedingly positive, with the market size valued at USD 7.71 billion in 2023 and projected to grow at a compound annual growth rate (CAGR) of 15.8% from 2024 to 2030. This growth is driven by increasing legalization and normalization of hemp-based products, which have spurred consumer demand for CBD-infused edibles, topicals, and beverages. The rise of e-commerce has further bolstered this growth by enabling companies to reach a broader audience and increase sales through online channels.
This unprecedented authorization in Mexico, a result of a long and arduous process that began in 2018, grants Xebra Mexico the ability to import and acquire cannabis seeds, cultivate and harvest cannabis, process and produce cannabis, and sell cannabis products with THC levels under 1%. This mirrors the provisions in the U.S. Farm Bill, which also regulates low-THC hemp products. The exclusivity of this authorization ensures that Xebra Brands has a clear runway to capitalize on its first-mover advantage, setting the stage for significant market penetration and brand establishment in Mexico.
Jay Garnett, CEO of Xebra Brands, emphasized the importance of this achievement, noting that it represents only the beginning of the company’s growth trajectory in the region. With this authorization, Xebra Brands is strategically positioned to explore and establish partnerships and joint ventures, leveraging its unique market position to monetize its exclusive rights effectively.
The therapeutic benefits of CBD, such as its potential to reduce anxiety and pain, have garnered significant consumer interest, leading to increased investment in research and development. Major retailers, including Walgreens Boots Alliance, CVS Health, and Rite Aid, are now stocking CBD-based products, reflecting the growing acceptance and commercial viability of CBD. Additionally, the expansion of CBD into skincare and personal care products, as seen with Sephora and Ulta Beauty, indicates a broadening market scope and increased consumer adoption.
The CBD market is characterized by a high degree of innovation and competitive activity, with companies continuously developing new products and services to maintain their market positions. For instance, the introduction of CBD sports recovery brands and partnerships between biopharmaceutical companies and sports figures highlight the diverse applications and growing popularity of CBD products.
Regionally, North America dominates the CBD market, accounting for a substantial revenue share, driven by favorable laws and high consumer awareness. Europe and Asia Pacific are also expected to experience significant growth, with increasing legalization and consumer interest in CBD’s health benefits.
Xebra Brands’ exclusive authorization in Mexico, combined with the strong global growth of the CBD market, positions the company to capitalize on expanding opportunities both locally and internationally. By leveraging its first-mover advantage and tapping into the growing demand for CBD products, Xebra Brands is well-placed to become a key player in the global cannabis and CBD industries, driving innovation and growth in this dynamic market.
