People often ask us ‘how’s business’ and you know, we can’t help but smile. It’s good. No, it’s great. Better than great. And that’s because of an exploding CBD industry that’s getting bigger every single day. Did you know there’s currently a $340 billion dollar global cannabis market?
That’s because CBD isn’t just being used in vapes, topicals and toothpicks; CBD is being infused into skin care and cosmetics, even candles and pillows! You can also find CBD-infused foods and beverages pouring into the market; hundreds of brands are jumping on the bandwagon. Canadian investment banking company Canaccord Genuity projects that the cannabis-infused beverage market alone could reach $600 million big by 2022. And have we mentioned the burgeoning market for pets to help with anxiety/stress?
According to the Brightfield Group, which focuses on market research in various cannabis-related industries, the U.S. market for all-things-CBD rose over 80% in 2018, to about $591 million a year! They found that the audience for CBD includes millenials looking for alternatives to Xanax to deal with stress and older users who want help with the aches and pains of aging without having to rely on pharmaceuticals.
Setting things up for an even bigger explosion is the law passed December 2018 that legalized industrial hemp farming in the US. Brightfield thinks that could help the CBD industry hit $22 billion by 2022. Some have pushed back on those numbers, but Brightfield is sticking to their guns, saying that they’ve interviewed hundreds in the industry, spoken to thousands of consumers, and conducted market research across literally millions of data points.
Of course, there are many different organizations out there that tally different numbers up. New York-based investment bank Cowen & Co estimates the CBD market could be making $15 billion by 2025. BDS Analytics and Arcview Market Research suggests that the entire market for CBD sales in the U.S. will surpass $20 billion by 2024 – but their numbers are higher because they project that a lot of CBD will be available to purchase from regular retail stores, not just cannabis dispensaries.
BDS Analytics is also seeing a compound annual growth rate of 49%(!) by 2024 across all distribution channels. Additionally, BDS expects that the CBD market, alongside THC products, will create a total market of $45 billion for cannabinoids by 2024. Even if we quibble over a few billion, the figures are astronomical.
BDS has other findings that contribute to the overall picture. First is that since 2014, CBD product sales in dispensaries have grown at an even faster rate than overall sales in those same dispensaries; secondly, 66% of hemp-derived CBD users in the U.S. back full federal legalization of cannabis, with 90% of them believing that marijuana has medical benefits. And forget ‘stoner culture’; CBD users have an average age of 40, a higher education, and are more likely than non-consumers to have full-time employment.