A new report from cannabis industry analysts the Brightfield Group predicts that the non- psychoactive hemp-CBD market will explode and hit $22 billion by 2022.
CBD is one of the most medicinal compounds in the cannabis plant, and has shown to help with everything from PTSD and anxiety to MS and epilepsy.
CBD products have found their way from mostly head shops to natural food stores, beauty aisles, cafes and doctors offices. So far the industry is on track to hit $591 million in 2018, which could increase 40 times in the next four years.
While the early CBD market was assumed to be businesses cashing in on a trend, an uptick of states with required cannabis testing and regulation has created an explosion in potent and effective CBD products.
CBD has gone through a surge in popularity, and people want to buy it for common things people have been using over the counter medications for- bug bites, skin care, topicals, arthritis.
Since CBD is still highly regulated, major companies and retailers have been hesitant to get in the mix. However, the Brightfield Group believes the biggest opportunity for growth is Senator Mitch McConnell’s 2018 Farm Bill which, if passed, will legalize hemp under federal law, which will allow CBD to be legally sold in all 50 states. It would also remove the only roadblock for CBD investments from major corporations. It would also allow and encourage mainstream, big-box stores to start selling CBD products.
According to Brightfield Group, there will be increases in every sector that sells CBD – from dispensaries to medical companies. Maybe the biggest push will be from big box retailers and national chains that get in on the lifestyle craze.
And while pharmaceuticals would also be a major driver of money into the industry — for example, GW Pharma’s new epilepsy drug would cost a patient $32,000 per year — that’s not the approach most CBD companies want to take.
As consumers shift away from pharmaceutical companies and look for natural remedies, CBD seems to be the drug of the future.
CBD is seen by many as a natural remedy instead of a pharmaceutical or narcotic drug, which gives the compound an additional perception of safety and medical effectiveness that traditional, THC-heavy cannabis doesn’t achieve as easily through its many decades of propaganda. This may make consumers more likely to try CBD products, especially when it starts showing up on the shelves of neighborhood groceries.
Both the House and Senate have passed the 2018 Farm Bill.