3 reasons to partner with DSM in the cannabinoid market

By:  Talking Nutrition Editors

  • DSM recently announced that it will be entering the cannabinoid space as an end-to-end provider of market-ready solutions and premixes via a strategic partnership with leading US-based CBD ingredients and finished products manufacturer, Mile High Labs (MHL).
  • Cannabidiol (CBD) – one of the most studied cannabinoids naturally occurring in hemp plants – is set to disrupt the dietary supplement and food and beverage categories, due to a strong consumer pull for CBD-based solutions that address top health concerns, like stress, mood and sleep.
  • Read on to learn how MHL’s CBD expertise, alongside DSM’s core competencies and position as an innovative, purpose-led partner in human nutrition, will create a platform from which forward-thinking brands can deliver novel, health-benefit driven products with globally trusted ingredients.

The cannabinoid health and nutrition market is fast-growing, powered by strong consumer interest in CBD-based products and wellness solutions. Already, CBD is demonstrated to play an important role in a number of areas, especially in the management of brain-related health areas, like mood, stress and sleep. But with further positive findings expected from ongoing research exploring the benefits of both CBD and other minor cannabinoids – which are referred to as CBx and make up less than 1% of the hemp biomass – there is huge potential for dietary supplement and food and beverage manufacturers to innovate and support the health of individuals worldwide. 

Despite the rising popularity of CBD products though, there are still some significant barriers for brands looking to enter the CBD space in the current climate, primarily due to the absence of recognized science or quality standards. This presents an exciting opportunity to create a platform that will support brands in achieving rapid, scalable CBD growth. 

Below, we outline some of the reasons why DSM has chosen to invest in the future of the cannabinoid market and explain how it is ideally equipped to support customers along the entire development process, to create science-backed, CBD-based solutions with real purpose. 

1. The conversation around CBD is changing

CBD is rapidly gaining awareness among consumers, with almost 65% of individuals in the US saying they are familiar with the ingredient, and one third of American adults having used it.1,2 Moreover, high satisfaction is reported in US consumers who already use CBD products. 94% find them effective and 82% would ‘definitely or probably’ repurchase based on their experiences to date.3

As well as high satisfaction amongst consumers, there is also a significant opportunity for brand owners to tap into consumer health concerns associated with CBD-based products. Consumer insights indicate that CBD is expected to become a dominant ingredient for sleep, stress, mood and mental wellbeing, for example. Innova Market Insights reports that 71% of US consumers are open to accepting CBD as an ingredient to support their health and wellbeing.

2. Navigating the regulatory landscape

Despite the strong consumer pull for CBD products, the legal and regulatory landscape has been slow to adjust. There are also huge variations in the quality and safety of CBD products commercially available in today’s market, largely because of a lack of regulatory clarity. Brands that choose to innovate in the CBD space need a reliable and trusted partner to help them enter the cannabinoid market early and build a dominant position, while protecting consumers. Here, DSM’s partnership with MHL will be an important enabler for customers preparing CBD product introductions. 

Together, DSM and MHL are committed to developing the science and quality standards the cannabinoid industry sorely needs. While DSM will apply its advanced scientific, applications and formulations expertise and high-quality micronutrients, MHL brings a broad spectrum of science-backed, hemp-derived CBD ingredients and finished product manufacturing capabilities to make it happen. The resulting market-ready and premix solutions – produced at MHL’s 400,000 sq ft state-of-the-art large-scale facilities in Colorado, USA – will enable dietary supplement, food and beverage and other nutritional products brands to deliver science-backed, health-benefit driven CBD innovation with speed and confidence.

3. A partner to help pioneer the future of the cannabinoid market

As a reliable, innovative purpose-led partner, DSM’s primary goal in the first phase of its market entry is to engage in premix and market-ready solution projects with strategic customers already in the market or preparing for CBD product introductions. The company’s longer-term ambitions will see it leverage its clinical, regulatory and applications expertise, to explore the health benefit potential of minor cannabinoids and partner closely with customers to develop the next generations of science-backed cannabinoid solutions. This will involve exploring new claims around CBD and research, science and claims for CBx to help customers differentiate their products on store shelves with innovative CBD/CBx solutions. 

DSM has also recently taken its first steps into the cannabinoid active pharmaceutical ingredient (API) market, via a commercial partnership with global pioneer in cannabinoid actives, Brains Bioceutical. There is increasing recognition of the therapeutic potential of cannabinoid actives, as a result of mounting evidence across more than 150 clinical trials showing benefits in pain disorders, cancer, CNS (Central Nervous System) diseases and more. Enabled by Brains Bioceutical’s leading portfolio of naturally-sourced cannabinoid actives and extensive expertise in the field, this exciting venture will see DSM partner with customers during early-stage drug development to benefit global patient health.

Want to learn more about how DSM can support you in realizing the potential of cannabinoids and bringing purpose-led CBD-based solutions to market?

Published on

07 July 2021

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References

  1. Gallup 2019.

  2. SingleCare survey 2020. 

  3. 2019 Consumer Reports: https://www.consumerreports.org/cbd/cbd-goes-mainstream/2017 Brightfield Group ‘Understanding CBD’.

  4. Innova Market Insights.