Direct Selling Companies Lead Global Market in Sales of Cannabidiol (CBD) Products
PLANO, Texas–( BUSINESS WIRE )–Direct selling companies will sell $300 million worth of cannabidiol-related products in 2018, making direct selling the largest channel of distribution for the rapidly growing CBD product sector.
“Interest in cannabidiol, or CBD, is rapidly transforming the consumer product landscape,” says Todd Eliason, publisher and editor in chief of Direct Selling News (DSN), which conducted the research. “The trends also indicate that global direct selling sales of CBD products could exceed $1 billion by 2020. Established companies as well as a growing number of startups have begun announcing their entry into the market.”
CBD is one of the hundreds of cannabinoids found in the Cannabis sativa plant. The ingredient is being credited with a growing list of health benefits and, as a result, companies from virtually every consumable category, including beverages, dietary supplements, skin care and pet products, are actively exploring business in the market.
In its most recent study, Direct Selling News has identified at least 25 direct selling companies that already have entered the CBD space. These companies, sometimes referred to as network marketing companies, all opt to use a network of independent salespeople to sell their products, often on a person-to-person basis, rather than a more traditional retail channel of distribution. They include, but are not limited to: Kannaway, the direct selling arm of California-based Medical Marijuana Inc. (OTC: MJNA); and California-based Youngevity International (NASDAQ: YGYI), which is currently ranked at No. 89 on the DSN Global 100 list of the world’s largest direct selling companies.
“With an ingredient that is as easily misunderstood as CBD, the direct selling channel may prove to be the perfect fit for companies seeking channels of distribution,” says Eliason. “Direct sellers and network marketers are known for their one-on-one training and education methods that can meet the consumer on a personal level even if it’s the first time they’ve heard of CBD oil. That personal connection and ability to address specific misconceptions has the potential to create a loyal customer base.”
Direct Selling News will be exploring the many factors related to direct selling companies’ leading role in the CBD market in an upcoming edition of the magazine as well as at a Nov. 6 CBD Symposium it is co-hosting with parent company SUCCESS Partners at its Plano, Texas headquarters.
About Direct Selling News
Direct Selling News (DSN) is the oldest and most respected trade publication devoted exclusively to serving executives of companies that distribute their products and services through the direct selling channel. Its annual research projects include the Global 100 list of the world’s largest direct selling companies and the Best Places to Work in Direct Selling.
Direct selling companies will sell $300 million worth of cannabidiol-related products in 2018.
The first direct sales and network marketing companies to offer cannabis products.
Through The Hemp Network and then Kannaway™, Medical Marijuana, Inc. was the first company to sell cannabis-based products through both direct sales and network marketing companies. Medical Marijuana, Inc. made the choice to invest in network marketing and direct sales through Kannaway™ and the Hemp Network to take advantage of the network effects of sharing products and information, including the benefits of hemp-based cannabinoids.
In 2010, the Hemp Network became the first network marketing company to provide customers with hemp textile products under a direct sales platform. Tapping into an existing network of hemp advocates and business associates to promote hemp as a wellness product, the Hemp Network spread awareness of CBD hemp oil products among potential customers.
We are proud to give people in the U.S. and around the globe an opportunity to grow their own health focused hemp businesses.
The Hemp Network provided the first marketing vehicle for global distribution of hemp products, helping Medical Marijuana, Inc. expand its market share for CBD hemp oil. Then in 2014, Kannaway™ was launched as a network marketing company to educate thousands about the benefits of cannabinoids. The company has successfully distributed cannabis product lines including CBD vaporizers from HempVAP®, a skincare line from Cannabis Beauty Defined®, and Rev!ve® products, through an experienced team of network representatives.
Kannaway’s CBD hemp oil products were also the first cannabis based products introduced to Puerto Rico when the company launched on the island. Through a series of education and press events, Kannaway™ was able to excite a dialog across the island on the benefits of CBD hemp oil and cannabis. Just 233 days after Kannaway™’s launch, the governor of Puerto Rico announced his intentions to legalize medical marijuana in the territory. The effort put into Puerto Rico, the U.S., and nations around the world earned Kannaway™ a nod as Start-up of the year in 2014 from the Academy of Multi-level Marketing.
Under the leadership of new CEO Blake Schroeder, Kannaway™ is looking to pursue an expanded presence of their business model both domestically and internationally. Medical Marijuana, Inc. has made it our mission for hemp-based cannabinoids to become a staple in modern diets. With so much potential within this growing industry, we are proud to give people in the U.S. and around the globe an opportunity to grow their own health-focused canna-businesses under the Kannaway™ model.
Shop Kannaway™’s brands in our store, or visit the Kannaway™ website to learn how to become a brand ambassador.
The first direct sales and network marketing companies to offer cannabis products. Through The Hemp Network and then Kannaway™, Medical Marijuana, Inc. was the first company to sell