As therapeutic cannabis use continues to be associated with health and wellness lifestyles, the popularity of CBD products has only grown.
A new report by the Hemp Business Journal is projecting massive growth in the hemp-derived CBD market over the next few years. While the U.S. hemp industry generated $820 million in sales in 2017, $190 million came from sales of hemp-derived CBD products. And experts project CBD products will drive the U.S. hemp industry over the $1 billion mark in 2018. Furthermore, the same reports project the CBD market to grow 700 percent by 2020.
Industry Insiders Forecast 700 Percent Growth In CBD Market By 2020
According to Forbes’ 2016 analysis of a previous Hemp Business Journal report, the CBD market could top $2 billion in consumer sales by 2020. But hemp-derived CBD products represent only part of the picture; $450 million to be exact.
The forecast represents a 700 percent increase from consumer CBD sales in 2016, according to CannabisNewsWire. In 2015, the total consumer CBD market hit $202 million. Hemp-derived CBD products accounted for $90 million of that total, while marijuana-derived CBD made up the remaining $112 million.
Still, $2 billion represents only a fraction of the legal cannabis market, which many analysts expect to hit $25 billion by 2020. Medical cannabis will still maintain an edge over adult-use sales at $13.3 billion and $11.2 billion, respectively, by 2020.
But these projections only account for states that have already passed legalization measures. As more states legalize medical and adult-use cannabis, the numbers could be even greater.
Industry insiders, however, are already targeting the CBD market. They point to the hundreds of CBD products that are already flooding legal markets in the United States. According to Headset Research data, for example, residents of Washington state have access to over 800 CBD products, principally sold as health and wellness items.
Health and Wellness Will Drive CBD Market Into The Future
Many significant studies have documented the medicinal properties of cannabidiol. Medical cannabis patients can use the pharmaceutical cannabinoid to treat inflammation, neurological diseases, and reduce the frequency and intensity of seizures.
Other studies attest to CBD’s effectiveness as a pain reliever, while anecdotal evidence suggests CBD oil can shrink tumors, neutralize cancer cells, and even help treat psychological issues like PTSD and anxiety.
Furthermore, medical users, who account for roughly a third of marijuana users in the U.S., are increasingly expressing interest in CBD treatments. For many, the absence of intoxicating side-effects is crucial in making a medical cannabis treatment viable.
As medical cannabis continues to be associated with health and wellness lifestyles, the popularity of CBD products has only grown.
And that’s despite the U.S. government’s ambivalent and unclear stance on the legality of CBD products. For its part, the DEA has tried to restrict the cannabinoid as a Schedule I controlled substance.
Additionally, the Industrial Hemp Farming Act of 2015 would have excluded hemp from the list of Controlled Substances. This means that hemp-derived CBD would become legal, while marijuana-derived cannabidiol remained illegal. Congress, however, failed to pass the act.
These legal and regulatory obstacles, however, don’t seem to be posing a significant threat to the hemp industry’s growth. To the contrary, the $3.72 trillion wellness industry’s shift toward premium cannabinoid products seems capable of overcoming any challenge.
CBD Market To Grow 700 Percent By 2020
The Hemp Business Journal will publish the full 2018 State of Hemp report shortly. But interested parties can pre-order the report now. For companies in a strategic position to take advantage of a rapidly growing CBD market, like Aurora Cannabis, Inc., the trends are encouraging.
Expect to see national CBD marketing strategies emerge, including television and social media advertisements.
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