Exploding Topics - ET: August 17th 2021

Presented By:

Hey,

Here’s this week’s list of rapidly trending topics, insights and analysis.

Topic #1

CBN gummies

CBN is a cannabis-derived compound with effects similar to CBD.

Like CBD gummies, CBN gummies can be used for stress relief, relaxation and as a sleeping aid. There is also evidence that CBN may relieve pain.

However, there are differences.

For example, CBN acts as an appetite stimulant, while CBD suppresses appetite. And while CBD is legal at the federal level in the United States, regulations around CBN are less clear.

That’s a big reason why CBN products are still relatively unknown. While a full 33% of Americans have tried CBD in some form.

What's next:
CBN gummies are part of the “therapeutic cannabis” meta trend.

As laws around cannabis continue to relax, cannabis-derived products are on a tear. In fact, the legal cannabis market is expected to reach $73.6B by 2027, growing at a CAGR of 18.1% until then (Grand View Research).

A big part of the growth is coming from therapeutic applications — often excluding THC (the psychoactive component in cannabis) entirely and opting for CBD instead.

Other CBD-based therapeutic cannabis products include CBD moisturizer, CBD chocolate, CBD flowers and CBD pillows. As well as CBD for dogs.

Topic #2

Cambly

Cambly is a marketplace for conversational English tutors.

Unlike some of its competitors, Cambly doesn’t use structured lessons with ongoing schedules. It’s strictly for casual, on-demand chatting.

It also doesn’t require tutors on the platform to have a certificate or degree of any kind. They just need to be native English speakers. This ensures there’s always someone available to talk: the company promises wait times of 5 seconds or less.

Cambly raised a Series B for an undisclosed amount last year.

What's next:
Cambly is part of the “language edtech” meta trend.

The online language learning market is expected to grow at a CAGR of 18.7%, reaching $21.2B by 2027 (Meticulous Research).

Many language-learning platforms have seen their search interest rise significantly over the past 5 years.

For example:

Preply, a marketplace for online language tutors: 1366% increase in search interest.

Lingoda, a Berlin-based online language school: 371% increase in search interest.

Perfectly Spoken teacher-led English lessons: 700% increase in search interest.

Elsa Speak, a mobile-first language learning app: 669% increase in search interest.

Topic #3

Prebiotic soda

Prebiotic soda is a carbonated beverage containing compounds to stimulate gut bacteria growth.

Searches for prebiotic soda were already on the rise. But the emergence of Poppi, a prebiotic soda containing apple cider vinegar, has accelerated growth in this category.

According to Poppi’s founder, their product is currently sold in 2,000 stores. And they’re on track to expand to 16,000 stores by the end of this year.

Olipop, a direct competitor to Poppi, is another prebiotic soda brand with solid traction.

There are plenty of fast-growing prebiotic products outside of the soda space. For example, Yuve has a line of prebiotic gummies. And they currently generate $2.24M per year.

What's next:
Prebiotic soda is part of the “functional beverage” meta trend.

Functional food and beverage sales reached $267B this year (IFT data) — an all-time high. In fact, the category is on track to overtake “naturally healthy” food and drinks within the next few years.

Examples of startups tapping into this meta trend include Humm, HOP WTR, Zevia, Olipop, and Rebbl.

Topic #4

Creative Fabrica

Creative Fabrica is Etsy for graphic design.

In other words, it’s a marketplace for digital content like fonts, icons and illustrations. With over 1 million assets currently available (and growing fast).

Aside from a la carte purchases, Creative Fabrica also offers product bundles and subscriptions. For example, their “All Access” subscription plan allows unlimited downloads for $29 per month.

The Dutch startup raised a $7M Series A in January.

What's next:
Creative Fabrica is part of the “niche marketplaces” meta trend.

Generalist marketplaces like eBay have been around for decades. But specialty marketplaces are starting to have a bigger role.

For example:

Dwarf Factory is a marketplace for custom keycaps for mechanical keyboards.

PWCC Marketplace is a marketplace for collectible cards.

StockX is for collectible sneakers.

Pachama is for carbon offset projects.

Credible is for student loans.

And Royalty Exchange is for music rights.

Topic #5

Skyrocketing Fintech Startup
(Exploding Topics Pro Only)

In this week’s Exploding Topics Pro report we shared an emerging Fintech platform that hasn’t gone mainstream (yet).

In this week’s report we also shared a:

1. Exploding web app with 50k+ users since launch.

2. New beverage category with 426% search growth.

3. Fast-growing niche DTC startup.

4. Connected device brand with lots of early traction.

5. SaaS startup with +99x search demand growth over the last year.

Lots more.

Try Exploding Topics Pro

We hope you enjoyed this week's Exploding Topics Tuesday. See you next week.

Talk Soon,
Brian and Josh

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