Are we in a CBD Market Boom?
CBD has been dominating headlines in recent years and since the 2018 Farm Bill was amended, hemp was removed from the Controlled Substances Act. This basically kicked down the door for the flood of American companies ready to get in on the current interest and demand for cannabis items, more specifically CBD which is known to be chock full of health benefits, minus the often unwanted and controversial high that comes with THC. There is no shortage of projections as to where the market will end up in just a few years, with expected full legalization of cannabis by 2020 and some projections putting the Cannabis/CBD industry at $22 billion by 2022. Anyone invested in the CBD Market right now is on the brink of major growth and expansion as the industry prepares for a boom – here’s why.
Legislation and the Stimulating Effect on the U.S. Economy
There has been momentum gaining for over a decade, and picking up pace after the US Farm Bill of 2014 – but 2018 is when things started to really look serious with the legalization of hemp derived products. The bill, championed across the finish line by Senate Majority Leader Mitch McConell, was meant to, quote, “[…] introducing legislation that will modernize federal law in this area and empower American farmers to explore this promising new market.” The bill doesn’t only talk about hemp, but also mentions its extracts and derivatives, so long as they are at or below 0.3% THC content. His own projections and hope for the CBD Market is that it will one day reach or surpass the success of the tobacco industry in Kentucky’s past.
McConell isn’t alone in his thinking; Senator Ron Wyden joined McConell when the bill was being introduced to emphasize the fact that restrictions on hemp were essentially “[…] anti-farmer, […] anti-consumer and anti-common sense.” Sen. Jeff Merkley has stated that the restrictions on hemp farming in the U.S. were “outdated and frustrating.” Across the board, the sentiment that the government’s old view and approach to hemp was in dire need of modernization, which is a big reason the movement in the cannabis industry continues to hurtle forward at a remarkable pace.
The energy towards domestic job creation in the U.S. and homegrown crops will also play a part in the industry’s success and fuel the proliferation of this industry. According to reports, over 25,500 acres of land were dedicated to hemp growth in 2017. The hemp grew in 19 states and 70% of it was used for CBD product creation.
In a rapidly changing time, when conversations about industries dying out and jobs being lost to technology set a bleak outlook for some, this new market is a shiny new possibility full of promise. With a new industry comes a new supply chain and millions of new jobs involved on every level – from growing to manufacturing to packaging, from merchant services to certifications, lab testing for transparency and more. It’s gone from a fringe item to one of the hottest topics and most talked about caveats in the race for the 2020 presidential election.
Versatility Means Endless Possibilities
There is a big incentive and path of opportunity for everyone, from small mom and pop shops to seasoned entrepreneurs, all the way to fortune 500 companies. Currently, CBD oils and isolate are being used in every way you can imagine – and in ways you couldn’t have imagined, as well. The products currently available with CBD run the gamut, from CBD oils, to vaping products, to gummies, to beauty/anti-aging products, to pet products to tinctures and a growing list of so much more. It is increasingly showing up in even balms, lotions, beer, waters, juices, teas, even coffee. The versatility of CBD’s use and integration into other products means that other companies whose businesses weren’t originally built on the idea of selling CBD can also join the market by adding CBD products to their lineup.
A Vertical that Grows with Continued Education on the Subject
The general public is learning about its benefits more and more every day; its an information based demand that is growing exponentially every day, spreading by word of mouth and the more internet users talk and share about it. While it might look like the industry is just starting to outsiders, entrepreneurs and everyone involved in the supply chain, from those involved in packaging to distribution to certification services to merchant services and more – have been quietly readying themselves for this moment. Since the movement is already steadily trotting towards eventual full legalization, those that have been diligently working towards that day are expected to see huge returns as a brand new market hits mainstream. It is expected to skyrocket.
Naturally Derived Products are Positioned for Success
One thing the proliferation of the internet has done is to effectively spread awareness of an infinite number of causes. A side effect of this has been the wave of information on how much harm harsh chemicals and pharmaceuticals can have on the human body. This has successfully sparked a movement away from big pharma and towards naturally derived products and companies who can showcase transparency in sourcing. CBD has been praised as being beneficial to patients dealing with some of the most painful ailments that have rigorous, harsh treatments, such as cancer patients going through chemotherapy, patients with multiple sclerosis, Parkinson’s Disease, Alzheimer’s and Arthritis, among others. It’s laundry list of health benefits includes reducing anxiety and depression, effective pain management and relief, having anti-seizure properties and aiding with common problems such as sleeping issues/ insomnia – all benefits that over the counter medications have treated, but each with their own side effects. Some of the drugs prescribed by medical professionals in response to some of these conditions have been proven detrimental to human health in other ways. CBD offers an effective, natural option with no serious side effects.
A Train that has Already Left the Station
The CBD industry isn’t just a mom and pop gamble – big companies like Sephora, Heineken and even Coca Cola have already begun the onboarding process and taken the first steps towards including hemp based cbd in their lineup. On Wall Street, cannabis stocks like Aurora Cannabis, Canopy Growth and Tilray, Inc. are already valued in the billions – which is another indicator that everyone is hovering their fingers over that green button. The industry has already gone into motion and all those involved are primed and ready for the market’s inevitable green rush once full legalization hits the nation.