Cannabidiol or CBD for short, is definitely not a new active ingredient. It is actually one of the 113 cannabinoids in the cannabis plant. Even though it was discovered in the 1940s along with Cannabinol (CBN). At first, it was thought that CBD was just a precursor to THC, however they are both made independently. Since its discovery, there has been a plethora of studies done and the benefits are starting to show in its market growth.
How Big is the CBD Market?
CBD’s market growth has been increasing at a very fast rate. CBD started gaining popularity around 2014 and by the end of 2015, it had a market size of $202 million. Since 2012, many states in the United States of America have been legalizing marijuana for recreational use with over half of the states already legal for medical. Countries are thinking about legalizing. Canada and Uruguay have already fully legalized on the federal level. This is all gearing the CBD market for explosion. With the market boiling up, Cannabidiol is set to be worth a $2.1 Billion market, which is a 700% jump!
CBD’s Huge Market Growth
It isn’t a surprise that as the marijuana industry as a whole grows, it helps its neighboring industries too. The marijuana market itself is said to hit $57 billion by 2027. Recreational marijuana will be 67% of that and the medical market would be 33%.
Cannabidiol (CBD) is growing mostly by word of mouth through so many people that have experienced the benefits. The benefits of CBD range from anti-inflammation, neuroprotective properties, blood pressure, irritable bowel syndrome, menstrual cramps, ADHD, anxiety and much more.
Another reasons why the CBD market is experiencing such a huge growth is because of the easy ways to consume them. Marijuana is usually either only smoked, vaped or used in edibles. CBD on the other hand can be smoked, vaped as an oil or as a dry herb, use in tincture oil drops, gummies or edibles, wax concentrates, creams or lotions, in capsule pills and even isolates which is the most versatile form. It helps even more now that pet snacks and treats come with CBD.
Help from the Farm Bill 2018
There is no question what the 2018 Farm Bill. The 2014 Farm Bill can possibly be what spurred the recent CBD craze. Since the 2014 version expired on September 30, 2018, a new Farm Bill had to be passed. There was a lot that went into the Farm Bill but many people were holding their breath for it to pass because of the Bill that’s aimed towards the hemp plant. This bill made it legal for farmers to start farming hemp which is where CBD comes from.
How CBD is Helping Other Industries
Not only is CBD booming but it is also directly helping other industries. Back in the late 1840’s, people set out to Northern California in search of gold. The gold rush had started and many people thought they would strike gold. People starting realize you can make more money selling shovels in a gold rush. This is very similar to the CBD industry. Even though it is a money making red hot niche, the other industries close to it are also making money because of Cannabidiol.
Vaping Industry
All forms of smoking are able to be vaped. Whether you’re looking at flower, oils, or wax, everything can be done with a vaporizer. The hottest product now is pre-filled CBD vape cartridges. Cartridges are the easiest way to vape. They usually come with concentrated CBD oils which is generally the most potent form. Simply screw it onto your 510 thread battery, press the button and blow your vapor out.
There are also dry herb vaporizers that let you vaporize the dry herb. With companies like Brick & Storz being sold for $165 million, this part of the niche will grow really quickly. Especially with the fact that there has been a big focus on high-CBD low-THC strains in 2018.
Dispensaries and Smoke Shops
A lot of people go straight to the internet for their CBD product because online stores will have a much bigger variety of products. While brick and mortars mainly carry tincture oils and creams or lotions, the online world is still capturing a big portion of sales.
However, many places like big box retailers or big groceries still aren’t looking to sell CBD products. This causes more people to go to smoke shops and dispensaries searching for it. It has become so common that even Weedmaps has started listed CBD Only stores on their website.
Pot Stocks
In the stock world, there is always a strong magnetic force that is being pulled by new industries. When marijuana was becoming more public around 2012 from states starting to legalize, public companies started changing their business plans to be in the weed industry. When cryptocurrencies became a big hot topic, multiple companies started talking about joining the blockchain space. All these boost stock prices in the short term.
We are now at a time where people are looking to sell or get into the CBD space. This is getting CBD the notoriety from people who would have never found out about it but more money is being pouring into the industry. This usually means stronger companies being formed with the competition looking to do better.
Conclusion
CBD is not new since it was discovered and extracted in the 1940s, most of the benefits about it have only been discovered in the past 10 years. With all the benefits of it and proper education, the CBD market is poised to be much larger than the recreational and medical marijuana markets combined. As more consumers find out about it and more entrepreneurs start getting into this specific space, it will start to get much more saturated. However, anytime there is competition, you will only start getting better products with better service.