Cannabidiol or CBD is one of the hundred identified compounds present in the cannabis plant. Unlike the THC (tetrahydrocannabinol), it does not produce an intoxicating ‘high’.
The CBD market is one of the most exciting markets globally due to a tremendous opportunity of expansion and growth. To call its market growth ‘promising’ would be an understatement – that would be like calling oil shale just promising via fracking and we all know that this wave has changed the energy outlook worldwide and has created billions of wealth for America.
With 9 states now allowing recreational marijuana in the US and several other countries already joining the legalization bandwagon, the prospects of the CBD business are strongly positive.
In addition, there is now a large body of scientific research which supports utilization of CBD for a number of ailments such as chronic pain, anxiety disorders, and neurodegenerative conditions.
The CBD demand took off only recently. Its market size was relatively small until 2015 (when it stood at $202 million). At that point of time, the market comprised $112 million in CBD products derived from weed and $90 million of products derived from hemp.
According to estimates released by the Brightfield Group, the sales of CBD products derived from hemp increased by a whopping 100% to touch $170 million in 2016.
Brightfield Group published a detailed report on the potential of CBD market in 2017. This report estimated that the CBD products derived from hemp will witness an annual growth of 55% for the next five years. This means that the hemp-derived products alone will hit the billion-dollar mark in the next three years flat.
According to the Hemp Business Journal, the total sales of CBD products will be in excess of $2.1 billion by 2020, with sales of hemp-derived CBD products accounting for $450 million of the market share.
However, some analysts such as Greenwave Advisors are even more optimistic and estimate that market would be worth $3 billion by 2021. Increasing availability and new awareness among the masses are two factors which would drive this growth, according to Karnes.