The cannabis industry has exploded in the last couple years and CBD seems to be one of the largest driving forces of this market growth. In this article, we will discuss where the market is today, where it came from and where it’s heading in the next couple of years.
It was recently reported by Fortune.com that the CBD market may be worth $16 billion by 2025. Already 7% of Americans are turning to CBD for either treating medical conditions they may have or using CBD oil as a nutritional supplement. Cowen & Co recent published consumer report had surprising results over consumer awareness of CBD products. They conservatively suggest that the legal CBD industry will grow to 10% of US adults or 25 million CBD consumers by 2025.
” Brightfield pegs the market for hemp-derived CBD products at about $591 million in 2018, growing to $22 billion by 2022. Other analysts, while nowhere near as bullish, are still very positive on the sector. Hemp Business Journal says the market for hemp-derived CBD was about $190 million in 2017 and will grow to $646 million by 2022.” Source
With the many progressive changes in government policy in recent years, this growth seems easily possible. The main reason why companies can now finally develop hemp-derived CBD is that it’s now legal for the most part! President Donald Trump signed the 2018 Farm Bill into action that states hemp-derived products are allowed federally. Since it’s finally legal, researchers and brands can now start mass producing CBD-infused products. Further to the above, the US Food and Drug Administration has recently approved their first hemp-based medicine known as Epidiolex. Although this medicine is only used to treat a small number of patients that suffer from a rare form of epilepsy, the seal of approval by the FDA will see many more CBD medicines coming out in the near future. To have a better understanding of the future we need to know the past so let us take a look at where this CBD craze started.
Where did CBD begin
Cannabidiol ( CBD ) is a phytocannabinoid that had already been discovered in the 1940s. It was a misunderstood cannabinoid that was originally thought to be a precursor to the infamous cannabinoid tetrahydrocannabinol ( THC ). Both cannabinoids were identified later in the 1960s by Israeli researchers. Because THC was psychoactive, CBD was literally put on the shelf and much research went into its psychoactive cousin, THC. You might think there was a lot of research into cannabinoids but in these early years and due to the laws surrounding cannabis, not much funding was given to cannabis research.
Since then over 100 cannabinoids have been identified and all seem to have either medical or therapeutic potential. CBD stands out as one of the most medicinal cannabis compounds and to date, many peer-reviewed studies have proved that there is huge potential in CBD as a potential for medical use, especially in the treatment of pain and inflammation.
With the decriminalization of cannabis taking shape across the globe and North America broadening and liberating cannabis use amongst adults, there has been an explosion of interest by citizens who want to know what all the fuss is about. Consumer awareness has mainly been driven by the exposure cannabis gets on the Internet and many people have made purchases from online shops that offer cannabis oils for sale.
What has spurred public interest in CBD is that its a product that is claimed to actually work for many different ailments, conditions and diseases. Although one may not claim CBD has any medical benefits the proof is really in the results of many people finding relief in using CBD for diseases such as arthritis, epilepsy and conditions such as acne, PTSD and depression to name a few. What is more, CBD is a natural compound found in the cannabis sativa plant, that is non-toxic, non-addictive and has absolutely no psychoactive effects compared to the infamous cannabinoid THC. With over 10 states in the US that have legalized cannabis for both medical and recreational cannabis and the large proportion either looking at making changes or a medical marijuana program already in place, 2019 and beyond will still see a lot of changes in law involving cannabis legalization.
Where to From Now
The changes in cannabis laws are allowing research laboratories and universities to access much needed federal funding to investigate the potential properties of cannabis. Although thousands of studies have already been conducted on both humans and animals using cannabis, research funding has been limited in the past due to restrictive cannabis laws. With the passing of the Farm Bill and the approval of a CBD based medicine in conjunction with public demand for cannabis oils, we will see a normalization in cannabis use amongst adults and many more products hitting the shelves of stores in the near future.
CHALLENGE OF MARKETING
It’s practically impossible for CBD companies to advertise like regular companies. They can’t use Facebook, Google, mainstream methods of advertising. This makes it incredibly hard to advertise what the product actually is, so it creates a lot of mistrust between the producer and consumer and thus hurts the industry overall. For example, CBD Brands some times have to claim they’re “hemp oil” which is a completely different product than CBD, but they’re forced to do that by the advertising platforms. This misinformation leads the consumer to think that CBD is hemp oil and hemp oil is CBD, which is how the Amazon brands are making a fortune by misleading their customers to think they sell CBD.
Future Growth CBD and False Promises
CBD Brands consistently claim that their products can always help their customers. This is simply untrue because CBD affects everyone differently and it someones interferes with current medications. Saying that CBD is always good for someone and it always “enhances” their life truly hurts the industry because it creates a false sense of effectiveness. Yes CBD is an amazing compound that has the potential to help a lot of people, but brands need to correctly inform their customers of what CBD can and cannot do to them.