Beyond the smoke
Wellness market offers possibilities for cannabis industry
January 22, 2021 By Michael Cammarata
As we further expand our research about cannabis, we are identifying opportunities to tap into the wellness and consumer product goods (CPG) markets by providing value for consumers beyond consumption.
Cannabis has the potential to transform multiple industries as it becomes a key super ingredient in personal and home care products. What’s more, businesses are just now beginning to focus on the cannabis industry’s extraction side and realizing it’s not just about topicals and concentrates. Cannabis extractors and CPG companies must rethink their portfolio and product priorities to increase their exposure to the growing wellness market, channels and subcategories.
The wellness consumer
We believe we are standing on the edge of a plant-based transformation, driven largely by consumer demand. When we look at the market, we clearly see two different kinds of wellness consumers in the cannabis market: millennials (born between 1981 and 1996) and baby boomers (born between 1946 and 1964). The diverse nature of these demographics is phenomenal. What we know is that people are still getting used to the idea of cannabis, but overall acceptance is high across generations. Consumers are demanding affordable, accessible, sustainable and high-quality cannabis products.
In addition, plant-based solutions in beauty and personal care products matter more now than ever. This can be attributed to the growing consumer market becoming increasingly conscious about synthetic skincare ingredients in their everyday personal care products.
Personal care and beauty products represent multi-billion-dollar categories, and so does cannabis. They can be integrated together, and extractors and CPG companies have the opportunity to respond to a growing consumer demand for safe and effective natural products.
Personal care, household products
The cannabis market is expanding rapidly. We must look beyond the conventional ideas of cannabis consumption to meet the demands of wellness-focused consumers. This includes understanding the different effects of flavonoids (responsible for giving cannabis plants their pigmentation) and terpenes, and how they can be used with common household products. In this regard, some companies are progressing very quickly.
To that end, conversations about cannabis in the wellness market are evolving. The extraction industry is continuing to learn more about the potential benefits of both CBD and THC and how cannabis products fit within a holistic wellness lifestyle.
CPG companies are looking at how they can utilize the science-based properties of cannabis in everyday products – everything from toothpastes to deodorants to hand sanitizers. Extractors are exploring and leveraging the anti-bacterial, antifungal and moisturizing properties of the cannabis plant in everyday household items, including personal and skincare products.
Neptune comes from an experienced science, pharma and biotech background. We’re investing in studies and clinical trials on the different uses of cannabis. What we’re seeing revolves around flavonoids and not many people are talking about it. Plant-based deodorants, for example, are turning out to be effective and actually exceeding some expectations. With the cannabis plant and high essential oils, we’re starting to discover different uses and ways to create products for wellness consumers.
Sustainability is key
In a rapidly changing world, where consumers want more ecological products, corporations like Neptune, have a responsibility to minimize their environmental impact. It’s not just a duty, it’s good for business too, as younger consumers want to support companies that are taking a stand on urgent social and environmental issues.
We also believe there is a renewed focus and emphasis on personal self-care, in light of COVID-19. The purchasing decisions consumers make to support their health and wellness will have a lasting impact on the environment and our collective health and wellness.
At Neptune, our commitment to delivering healthy and sustainable solutions includes our recent collaboration with the legendary wildlife conservationist, Dr. Jane Goodall, for our Forest Remedies product line. We have created natural, plant-based hand sanitizer products, essential oils and hemp-derived products to meet the demands of wellness-focused consumers. Our Wonders of Africa Collection essential oils are sustainably-sourced from countries in Africa – a continent with incredibly rich biodiversity that Dr. Goodall has long cared so much about. Through our partnership with International Flavors & Fragrances (IFF) we worked with local farmers where our sourcing practices can benefit their communities, while also reducing the impact on our environment. Additionally, with every purchase of the collection, we’re donating five per cent of the sale price to benefit the Jane Goodall Institute. Every purchase supports the legendary conservationist’s efforts to create a better world for all living things.
Overall, companies must find ways to reach cannabis wellness consumers with every product they touch, from the time they wake up until they go to sleep – while simultaneously and aggressively pursuing new revenue opportunities.
Michael Cammarata is chief executive officer of Neptune Wellness Solutions, a diversified and fully integrated health and wellness company focused on natural, plant-based, sustainable and purpose-driven lifestyle brands, and the use of cannabinoids in household products to make them safer, healthier and more effective.
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