CBD Business Booms to $22 Billion by 2022
Everyone’s talking about it. The CBD business and market is expected to be worth a whopping $22 billion by 2022. If you are just getting into the cannabidiol industry, it’s a great time to have an entrepreneurial spirit. The CBD market is set to be worth more than Snapchat, which makes now the prime time to invest if you want to distribute or sell cannabidiol products. Whether you are just starting out with CBD oil or interested in increasing the value of your product lines in cannabidiol, find out the financial figures behind this booming industry and what you can potentially expect from a CBD business.
Brightfield Group Analyzes CBD Market
The Brightfield Group offers predictive market intelligence for the CBD and cannabis industries. Recently the agency published a CBD Market Research report stating that the market will be a $22 billion industry as it is growing much faster than cannabis. In fact, this is an increase of $2 billion from what the rest of market analysts were predicting a few years back.
What this could very well indicate is the CBD market will surpass $22 billion easily by 2022. With the rate of growth that cannabidiol products have already expanded across product lines, i.e., topical creams, tinctures, edibles, pet treatments, etc., there is no limit on the growth of CBD – save for deregulation.
The Consumer Packaged Goods (CPG) and pharmaceutical industries are said to be profoundly impacted as a result. The research by Brightfield Group indicates that these changes are taking place through the regulatory environment and with clinical trials. We are seeing product innovation and major brands develop as the CBD marketplace sets its hold in the US economy.
CBD Market Expansion
Rolling Stone reports that the CBD industry was worth $591 million in 2018. This was the result of cannabidiol being sold in medical offices, natural food stores, and as beauty products. Just how much is the industry booming? The value of $22 billion is 40 times that of $591 million. Forty times that amount. Think about that. The only thing holding back the CBD market from truly exploding is regulation.
Limitations to Cannabidiol Market
Since the federal government has yet to release hemp and marijuana as Schedule I narcotics, we are stuck in this middle-man zone. While consumers cannot legally purchase cannabis with THC, they are able to buy products containing one or more non-psychoactive compounds of cannabis. Consumers can buy CBD oil, gummy candy, and other products as long as these are not labeled as medication. This brings to light the fact that cannabis has yet to be deregulated and remains a federally restricted drug.
Brightfield Group Director of Research Bethany Gomez said, “What we started tracking this year was an explosion — face mask, bug bites, skin care, topicals. It’s being used for everything you can think of — sports, triathlons. People want to buy it for their grandma, for arthritis. Women get it for PMS and endometriosis — common things that people have been using over the counter medications.”
Gomez continued, “This industry has grown out of nowhere, based on word of mouth marketing. There’s no real mass market retailers that are covering it.” And this is exactly why there is a $22 billion market for CBD – yet no real rules around selling and dosing cannabidiol. Where do you hope to stand in the next few years in the CBD market? How will your CBD business stand out?
If you’re interested in learning more about these issues, let’s talk!
