THC-A is growing fast and furiously as the majority of companies are getting ready for legalisation within the nation. Even though this may take a few years, there is a lot of work that lay ahead for companies to become compliant. One of the critical areas will be in compliance with packaging. The importance of ingredient stipulation will become compulsory and is more than likely to follow the pharmaceutical rule of thumb. From a branding perspective, this will make packaging more exciting. The market trend in South Africa currently is heavily focussed on CBD the ingredient. As more products are flooding the market with CBD as an ingredient, the purchasers will have a choice of products to choose from, and this is where branding will become the driver for the consumer. Why is this excited for THC-A? We pride ourselves by aligning with ethical companies and products that will build brands that can sustain the transition that is currently happening in the South African cannabis market. We have been following both the local and international trends for a while and have made the following conclusion. In the Wise Guy Report “Cannabidiol Oil (CBD Oil) Market” it is estimated that there will be healthy growth in the CBD oil market an estimated 32% between 2019 and 2026. The Market Research Future, July 2019, estimated the growth as 38.45% by 2024. Reports are only calculated on the western economy and production with an under the anticipated economic value of the African continent.
So what would make your brand success full:
- The right training for resellers on selling the products and how the products can assist with conditions
- In a brightfield 2019 report, it shows that there are currently over 3 500 CBD brands in the market. Just stating that your product contains CBD will no longer sell the product.
- In 2017, 35% of CBD products were sold in online stores, over the last two years this has shifted by the entrance of chained retailers. Given their reach, scalability and mainstream familiarity, those in this distribution channel can expect to obtain 26% of market revenues in 2019.
- There will expand further through pharmacy and grocery as well as the emergence of shopping mall popups, gyms, pet stores, and other large retailers.
- Make sure that you build a sustainable brand tells the true story and make sure that you highlight what differentiates you from your competitors.
Africa is the sleeping giant in mids of the explosion of the Hemp and Cannabis industry. South Africa will play a significant role in the economic development of the Southern Sector of Africa. It such exciting times!