Cannabis Consumer Products and Accessories: Industry Vertical Infographic

 

How do consumer products and accessories apply to cannabis?

Companies in this vertical market branded consumer products that contain, are made from, or can be used to consume cannabis and/or hemp.

Subsegments

Flower & pre-rolls Beverages Edibles Cartridges Tinctures Topicals

Cosmetics Sublinguals Concentrates Accessories Clothing

The consumer products and accessories (CPG) investment opportunity

We think brands will be fundamental to the future of cannabis. In more mature industries, the most prominent players are those who handle the branding and marketing of consumer products. But as of early 2020, there were few winners in the cannabis brand game. For investors, there may be opportunities to secure early investments in this vertical’s most promising players.

We expect successful brands will take steps to secure a broad distribution network, deliver a consistent experience, and motivate repeat purchases by marketing their products around certain consumer values.

Key statistics for the cannabis consumer products and accessories vertical

• US$40B+ - est. total global legal cannabis market size by 2024¹
• US$25.7B - est. total legal U.S. cannabis market size by 2025²
• C$2.7B - est. Canadian market size for edibles and alternative cannabis products³

RIV Capital portfolio companies in the vertical

• Agripharm

  • Brands: Bakked, Craft Reserve, District Edibles, Firefly, Magic Buzz, o.PenVAPE, Pressies)

• Greenhouse Juice

  • Brand: Greenhouse Juice

• High Beauty

  • Brand: high, canBe

• NOYA Cannabis

  • Brand: Gage Cannabis Canada

¹Source: Arcview Market Research and BDS Analytics - “State of Legal Cannabis Markets - 7th Edition” (2019)
²Source: New Frontier Data - “2018-2019 Cannabis Consumer Report” (2019)
³Source: Deloitte - “Nurturing New Growth - Canada Gets Ready for Cannabis 2.0” (2019)

This is not an offer to sell or a recommendation to trade in any securities. This information is provided as of the date hereof. This document contains data obtained from third parties that RIV Capital has not independently verified. This document also contains forward-looking information within the meaning of Canadian securities law, which is based on certain assumptions. While management believes these assumptions are reasonable based on information available as of the current date, they may prove to be incorrect. Many assumptions are based on factors outside of RIV Capital’s control and actual results may differ materially from current expectations. Forward-looking information involves risks, including, but not limited to, the risk factors set out in RIV Capital’s most recent Management’s Discussion and Analysis and Annual Information Form. You should not place undue reliance on forward-looking information. Except as required by applicable law, RIV Capital assumes no obligation to update or revise any forward-looking information to reflect new events or circumstances.