The CBD market is a new industry. The United States is within the midst of the hemp revolution due to the Agricultural Improvement Act of 2018 or the famous 2018 Farm Bill. This law paved the way for the legal production and sale of hemp.
These days, farmers in the United States are growing hemp for the production of CBD. Cannabidiol is the non-psychoactive cannabinoid which became one of the hottest topics and also the least unspoken ingredients within the market.
The US Food and Drug Administration conducted a public hearing to determine the pathway towards regulating cannabidiol. Also, the agency has been struggling to carry its regulatory context to where it should be in the rouse of a huge sales increase.
The UK is somewhat earlier in the fast-growing market in which the sales are expected to reach a whopping $22 billion in just 3 years. Cannabidiol sales in the UK also skyrocketed. There are now more than 250,000 CBD consumers in the country. The total number of current CBD consumers in the UK is twice the recorded number for the past year. This goes to show that CBD is available everywhere. In the United States, the industry of CBD is currently booming while in Europe, especially in the UK, there are more questions compared to answers. People there are wondering what CBD is. They question the guarantee of its safety. Also, they wonder how the CBD market looks like.
What is CBD?
CBD or cannabidiol is among the 100 phytocannabinoids that exist in every marijuana plant. However, this plant is more likely to be recognized as marijuana or cannabis if it contains more THC. On the contrary, it is called hemp when it’s high in CBD.
Hemp is quite different from marijuana as it doesn’t manifest any form of psychoactive properties with traces of cannabidiol only. The fast progress and rising success of the cannabis industry were due to the recreational marijuana segment.
Studies were conducted to determine and prove the effectiveness and safety of cannabidiol. The latest report from the WHO or World Health Organization says cannabidiol exhibits no effects that indicate a dependence or abuse potential. Therefore, CBD does not have a connection to issues associated with the use of cannabis, such as addiction.
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What Does CBD Do to a Person’s Body?
When it comes to its use, the list seems to go on. The recent studies about CBD showed that this component of cannabis can help in dealing with different health problems and conditions. These include:
- Multiple sclerosis
- Intestinal bowel disorders
- Inflammatory conditions
Cannabidiol might be an advantageous addition to a healthy everyday routine to help in dealing with the signs of aging, breakouts, redness, rosacea, psoriasis, eczema, and skin allergies. CBD acts and works as a healing agent into your endocannabinoid system, constantly working to get the body in the place of homeostasis.
In other words, it can help your body maintain or recuperate from a health problem or imbalance in its inner environment, even if stressed. Depending on the kind of CBD that you consume, you might feel something changed.
For instance, if you’re targeting a particular part of your body with a cream or spray, only this region will be affected. Conversely, when you ingest CBD, it will be normally described as the relaxation or relief that you can feel right from your head down to your feet.
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The CBD Market is Still Scrappy Due to the Risks in the Interstate Commerce
The fast expansion of the hemp and CBD market is still affected by the risk of moving beverage, food, and cosmetic items all over the state lines. This is because despite commercial hemp became legal in the US, the CBD and its legal status are still in the dark. The truth is that the legal status of CBD varies significantly from one state to another.
Why the CBD Market is More Likely to Prosper in the Next Several Years
Cannabidiol will be crucial and very high in demand in the succeeding 2 to 3 decades. Different studies were conducted since the discovery of the endocannabinoid system in 1992. Those studies were to learn and understand the exact role of CBD in human health and even in disease management.
Since every person has his or her endocannabinoid system, it seems that every person will truly benefit from cannabidiol and other cannabinoids, especially THC and CBN. A hemp user is more likely to enjoy those benefits in using hemp as part of his daily living.
This study comes along with the spreading and ongoing legalization of both the medical and recreational cannabis. That is one reason why cannabidiol became mainstream. The increasing international access to different CBD products dispels most of the misconceptions that surround it.
Novice cannabis users are now recognizing their health benefits. The continued growth and success of the entire marijuana industry will depend on educating individuals who are wary or not familiar regarding the cannabis plant. Besides, the 2018 Farm Bill legalized hemp cultivation and removed this high-CBD plant from the Controlled Substance Act. Hemp was restored to where it used to be at – as a farming commodity. This bill will let the states regular the cultivation of hemp and move forward the hemp plant industrialization.
While this scale goes up, the different CBD products are more likely to become more and more common. According to the experts, they are expecting the hemp-CBD market to thrive from just less than $600MM in 2018 up to $22BB 3 years from now.
What Would be the CBD Market 5 Years From Now?
If there is one aspect of the marijuana industry that has no issue in grabbing the attention and following of general consumers, it should be the CBD or cannabidiol market.
Cannabidiol is one of the popular compounds present in both indica and Sativa plants. It is famous for a variety of health uses and well-being. CBD products, particularly the CBD oil, are scientifically proven risk-free to use than any other compounds found in cannabis, such as the tetrahydrocannabinol or THC.
Tetrahydrocannabinol is typically known as the culprit which triggers psychoactive effects among the marijuana plants. Though, THC is used as well for some health benefits in a form of THC oil. Unlike marijuana, CBD is legal in the 50 states of the United States. However, CBD will be considered legal only it is from a hemp plant – which is a cousin of the cannabis plant.
THC in hemp is just 0.3 percent unlike the usual 20 to 30 percent THC content of a marijuana plant. Therefore, CBD is widely accepted and recognized as safer to use. Due to that, cannabidiol is now being used as the main ingredient for a vast array of products that you can find in the CBD market today.
CBD is used as a special ingredient for some cosmetic products for a reason. That is the scientific belief that CBD is ideal for the skin. Aside from that, cannabidiol is also used as an ingredient in the product of various pet care products.
You may find it as a main ingredient in the sports creams mainly due to its muscle-relaxant properties. Probably, the most common and the leading use of cannabidiol has something to do with its anti-inflammatory and anti-anxiety properties. That makes CBD famous among those people who have been suffering from different issues:
- Sleep disorders
- Chronic pain
In fact, in a report of Hemp Gazette, the 1st CBD-derived medicine approved by the US Food and Drug Administration is expected to skyrocket in terms of sales. Its sales can reach up to $625m in sales for just one single year when doctors begin prescribing it. By the way, this CBD-derived medicine is named Epidiolex.
What does that mean? According to Chasing Markets, the CBD industry will eventually become an arduous segment in the stocks and consumer market. Based on the current projection of Statista, CBD growth can reach up to $2 billion in sales through the next 4 years with individuals suffering from depression and chronic pain to become its loyal consumers.
Arguably, this is one of the largest emerging markets. Not just can it generate billions for the market leaders, but it can also open new doors for revenue for the supplemental industries such as the marketing firms.
No doubt, it will bring in job opportunities and can be a dynamic part of the country’s economy. For instance, the companies in Canada are moving towards working within the cannabis and CBD industry in general in preparation for October when the country’s legal marijuana market eventually goes full-blown.
In general, the marijuana industry gears up for big returns. Forbes said the marijuana market seems to reach the market cap of $57 billion by 2027. If the prediction of Hemp Gazette is correct, then around $22 billion or 40% of the sales will come from cannabidiol.
With the recent growth, some manufacturers of CBD products have been experiencing amazing growth, showing the exponential rise and growth of the entire industry. For instance, GW Pharmaceuticals, the manufacturing company of Epidiolex, is known to be one of the leading players within the industry now that no sales are originating from an anti-seizure drug.
For instance, the most recent profit of GW Pharmaceuticals reached $14.2 million. It is more than twice of its revenue last year, which was only $6.1 million.
Another example is PotNetwork Holdings. Inc. Its success is also due to the huge potential of the success of the CBD market. Diamond CBD, Inc., the subsidiary of PotNetwork Holdings, Inc., posted an extraordinary increase in sales for the previous year. Its sales for June last year closed at $2 million, which is a huge 80% increase in the company’s performance of the same period in the previous year.
It’s all thanks to the excellent production and marketing team of the company that has been conscientiously keeping up with the tough competition within the fast-paced market. The lineup of Diamond CBD consists of premium quality CBD products crafted from hemp coming from the leading organic hemp farms.
Some of the famous CBD products are in the form:
- CBD vape oils
- Biotech CBD cream
- CBD edibles such as Relax gummies and Chill gummies
- It even includes pet products such as Pet CBD Food and Medipets CBD Pet Spray
On the other hand, Canopy Growth Corporation collaborated with the Constellation Brands, an alcoholic beverage company to boost their marijuana products including the CBD oil. With the expertise of Constellation and its knowledge about the market movement and trends, Canopy Growth Corporation is anticipated to produce some products united with the market preference.
Those are just some of the CBD-product manufacturing companies which are anticipated to contribute to the prosperity of the entire CBD market in the next several years. There is no doubt that with the competition that is brewing, those companies are expected to come up with new, breakthrough CBD products that can boost further the market.
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Entering the Thriving CBD Market
The allure of the growing market comes with several entrepreneurs who wonder how they can enter and get started within the marijuana industry. When thinking about the launch of CBD company and creating a CBD product, it’s important to keep in mind what type of CBD product you are trying to create and who your target consumers should be. Of course, you need to find out the cannabis and hemp regulations in your state.
If you are new to CBD, connect with knowledgeable individuals in the marijuana industry and find out more about the market from them. Feel free to ask for tips from these people, so you can also have a good start as you enter the market.
Your mission is to create potent and high-quality products that consumers will never hesitate to trust and patronize. Although the legal CBD market is new, it’s already jam-packed. The competition between the CBD companies and their products is getting tougher and tougher. Hence, only those products with premium quality have higher chances to survive.