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Where is the CBD Market Headed?
- After hemp was legalized for growth and cultivation with the passing of new legislation in 2018, the CBD market erupted with new products and companies looking to take advantage of the new space
- As of 2019, CBD sales increased by around 133%, to the tune of over $1 billion. That’s right; one billion. The market has plenty of consumer demand to back it up, and Americans are loving their CBD
By: Guest Contributor
With the last few years’ success in the CBD industry, new investors, everyday people, and seasoned investors alike are working to get their hands into one of the fastest-growing markets in the US. The CBD space is full of new providers and products, and new ones are arising each year.
As the research receives more and more funding, we’re learning all kinds of new information about CBD and its effects on the body and mind; and not much of that information is negative.
With so much demand for CBD oil and other products, it’s no surprise that people are looking to get rich by investing in the industry. But there’s still the question of whether or not it’s a good idea to invest in CBD. Let’s take a closer look at the industry, so you can decide whether or not investing in it is the right move for you.
CBD’s Benefits and Popularity
For decades, the Cannabis plant, from which CBD is derived, was outlawed, shamed, and viewed as an addictive and dangerous drug. This is mostly because THC is also derived from Cannabis, which causes the “high†that comes with smoking marijuana or ingesting THC-infused oils and edibles.
CBD is an entirely different cannabinoid, and both CBD and THC are just two of many cannabinoids found in the Cannabis plant. Each cannabinoid interacts with the body’s cannabinoid receptors in a different way, but it would take another article entirely to explain them all.
The bottom line? CBD doesn’t get you high, and industrial hemp must contain less than 0.3% THC to even be legally grown or cultivated.
CBD has been found to offer many benefits to humans and pets alike; among these are:
- Pain relief
- Anti-inflammatory properties
- Counteracts the effects of THC
- Useful in addiction recovery
- Managing anxiety disorders and stress
- Calming effects on the brain
- Increase focus and concentration
The benefits of CBD products far outweigh the minor side effects, and preliminary research has yielded promising results for the future of CBD. If you want to buy CBD to give it a try, you’ve chosen the right time to start! There are hundreds of varieties available, but not all CBD is created equal.
Quality Matters in CBD
If you’re thinking of investing in the CBD space, you’ll want to put your money towards a product that exceeds others in terms of quality. The higher the quality of the CBD extract, the more potent it is.
Lower-quality extracts aren’t as effective, and if the producer is using imported hemp, you run the risk of contaminating your CBD with pesticides and other chemicals from foreign countries. The US has some strict guidelines on growing hemp, and the top providers in the industry use only organically-grown domestic hemp to extract their CBD.
The Market So Far
After hemp was legalized for growth and cultivation with the passing of new legislation in 2018, the CBD market erupted with new products and companies looking to take advantage of the new space. As of 2019, CBD sales increased by around 133%, to the tune of over $1 billion. That’s right; one billion. The market has plenty of consumer demand to back it up, and Americans are loving their CBD.
Some estimates put the market at around $20 billion by 2022, but more conservative estimates put it somewhere around half that. It’s estimated that by 2024, the market will be worth $10 billion, and that’s not something investors can ignore.
The demand for CBD products only continues to increase as the years go by, so at this point, the only way to know for sure where CBD is headed is to wait and see.
That being said, the market shows potential for growth and continues to gain traction as more and more people try and love CBD products. This makes for an excellent investment opportunity if you know what you’re doing and where to put your money.
Among specialized dispensaries, even general retailers are starting to carry CBD. You may have noticed your local grocery stores, department stores, and even convenience stores carrying CBD oil and other CBD products.
This surge in CBD availability does present an issue, however; the producers are struggling to keep up.
The Quick-Buck Types
As with any industry, there are those looking to make a quick buck by ignoring quality standards and putting out a sub-par product just to get it on the shelves and into the hands of paying customers.
With little regulation on CBD products from government agencies, the standards in the industry are generally set by the top providers, and can’t exactly be enforced.
This leads to general flooding of the market with sub-par products, and many of those “off brands†end up on store shelves as retailers try to get their hand in the CBD market. Many CBD providers are working very hard to ensure their products meet certain standards, and those are the companies you’ll want to keep your eye on.
Where To Next?
The market seems to only be headed upward as time passes. With more money for research and much less stigma surrounding CBD and cannabis, there is the potential for massive growth as the public slowly shifts its opinion on the plant itself. With projections in the billions of dollars for the future, it’s safe to say that this market has a bright future ahead of it.
Not to mention, the better we understand CBD, the better it can be marketed. We’ve already found dozens of incredible benefits for the human body, and we’re sure to find more as our understanding of CBD evolves. We just have to be patient and wait for the research!
In the meantime, the market is flourishing and is expected to flourish well into the 2020 decade. If you’re looking to invest your money in a market that can offer significant ROI and stability, CBD might just be it. Always consult with an expert first, though. You wouldn’t want to put your money into the wrong startup!
Source: https://www.bigeasymagazine.com/2020/04/06/where-is-the-cbd-market-headed/
