The number of CBD oil users has grown rapidly both in the US and worldwide over the past few years, making it a growing business sector for companies in the United States, and easily accessible for users.
Both the usage and sales of CBD are expected to have an even higher increase in the next couple of years with the recent passing of the Farm Bill by President Trump towards the end of 2018.
In 2015, a mere four years ago, the market for CBD products derived from hemp stood at about $90 million. This number increased to around $170 million in 2016 according to Brightfield Group, thereby rising by 88.9% in just 12 months.
The CBD market analysis for 2018 shows that CBD sales have massively increased to around $591 million, according to the latest figures, that’s a rise of 557%. This is driven by the ever growing popularity and demand as people come to both realise and celebrate the positive effects of CBD.
Future of CBD Sales
Different research and data analysis companies have provided their predictions for the CBD industry in the coming years. Experts from the Hemp Business Journal predict that hemp-derived CBD products sales will reach $646 million by 2022.
Brightfield’s predictions though are more ambitious, as they expect to have about $22 billion in sales by 2022. This number sounds very far fetched (to some), and it presents a possible 700% increase in sales.
It could, however, be reality based on the notion that the hemp plant is now legal in the states, where it wasn’t before. The number relies heavily on how future legislation will go in different states as some still have restrictions in the use and production of the plant, and also look at how incorporating genuine marketing strategies will positively affect the market of CBD from hemp.
The industry is no doubt gaining traction, and is expected to grow even higher if Brightfield’s report is anything to go by. This is bound to lead to an increase in production of the hemp plant within the US, thus having even more people growing the plant to meet the demand for the product from CBD oil users.
Why CBD oil sales have grown
While the legalization of the hemp plant is a major reason behind the crazy growth of the market for CBD products, it is not the only reason. CBD products offer a great alternative to traditional medication according to studies.
It has a wide range of benefits ranging from the reduction of anxiety to chronic pain, to support with sleeping, and even epilepsy among many others.
With an increasing interest in wellness for people not just in the United States but worldwide, more people are open to the idea of new or alternative medication.
As the wellness industry keeps growing, providing a ready market for CBD products. CBD products have proven to be natural, depending on the form it is taken in, and it works quickly, from as little as five minutes to about thirty minutes after using it.
Perhaps the second biggest selling point that differentiates it from marijuana-based products is the lack of a psychoactive effect on an individual. That an individual get relief from pain without necessarily getting the high that is caused by the THC in marijuana products seems to bid well with the people.
This change in thought has greatly affected its sales as people are more open to the concept of buying CBD, without associating it with other drugs like marijuana.
Are there risks to the CBD market?
As more people move towards production of the hemp plant, there could (in theory) eventually be a risk of excess production which would lead to a reduction in prices of the product. Such a scenario would affect the CBD companies, farmers and investors as well.
However this is minimised by the growing rise in users that we have witnessed over the last four years. The sales of CBD are only expected to rise over the course of the next three years, negating any risk of over production. Especially as the production of CBD evolves beyond tinctures and expands into further edibles and indeed alcohol.
CBD has grown in popularity partly due to its lack of THC, so none of the psychoactive effects linked with marijuana. It is safe to suggest that CBD and marijuana users have a different desired outcome, once again protecting the future of the CBD industry for producers and users.
Although the idea and concept of CBD is still fairly recent, at least in our mainstream lives. It’s safe to say that the number of users, and therefore the sales of CBD are expected to continue to rise at a strong rate.
The future is bright
The legality of CBD products and hemp in general is still under discussion, and its production and purchase is still slightly limited in some states today. Such hurdles have previously limited its potential sales, but an elimination of these hurdles is expected to have a really positive effect on the CBD market sales, and forming a new generation of users.
As further tests and studies are carried out, it is expected that further uses and benefits of CBD are proven to be outlined. Opening up the possibilities of new users embracing the benefits that CBD can provide.
Ryan Goo is a partner at Urbul, a California based CBD company that specializes in all things hemp. He is an active member in the CBD community and publishes content on the Urbul blog regularly.