CBD Market Poised for Huge Growth
A lot has been said about the ever-increasing revenues of the legal cannabis industry, but contained within those figures is the success of a cannabis sub-market: the CBD industry. CBD’s growth has been steady over the last few years, but received a massive gift from the federal government at the end of 2018 which is sure to propel it to new heights.
In December of 2018, the federal government passed the Farm Bill, which legalized hemp – a non-psychoactive species of cannabis from which CBD can be extracted. Prior to the passage of the bill, CBD had been relatively popular with a yearly revenue of $7 billion in 2017 in North America. However, now that the 2018 revenue numbers have come in and the effects of the Farm Bill are being taken into account, CBD is projected to be a 47 billion dollar business in 10 years.
But it’s not just the Farm Bill spurring this growth. It’s the wide ranging acceptance of cannabis products in general. As of this article, 62% of all Americans support legal cannabis. And the favorability of cannabis, combined with the harmful effects of opiates, has led to increased pressure to accept CBD as a medical treatment. One place where you can see this shift taking place is in major sports. The NFL, notorious for its anti-marijuana stances, is on the receiving end of pressure from the players union to allow medicinal cannabis to treat pain. Because of the huge influence professional sports has on American culture, a shift here would likely lead to further movement in public opinion.
Of course professional sports is just a microcosm of what’s going on in society as a whole, but they are important examples of how even the most resistant institutions are under massive pressure for adoption.
In previous articles, we’ve talked a lot about the effects that demand has on industry growth. Mainly because increasing demand means that there’s money to be made, and businesses know that. As those businesses ramp up their production to meet that demand, expect significant job creation over the next decade. The most exciting part about this is that with all the regulations in place in many US states, we are only scratching the surface of this potentially massive market.