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Have you looked into the projected growth of the CBD market lately? This relatively new industry is becoming quite popular among many segments of the society, leading to investment banks and financial institutions taking great interest in trying to predict how big that market will be in the near future.
One such report, released by Fior Markets in 2019, predicted that the CBD market would be worth $17 billion by the end of 2026, after experiencing a CAGR of 36% between 2018 and 2026. For reference, the CBD market was valued — by that same report — as being worth $1,4 billion in 2018.
Also in 2019, Forbes ran the headline “CBD Market Could Reach $20 Billion By 2024, Says New Study”, where they reported on three other predictions made by different sources. The predictions ranged from $15 billion all the way up to $40 billion, and they all seem to be based on the idea that the current growth of the market will remain steady or increase going into the future. But how likely is that?
Let’s take a look at CBD itself, and at some of the attributes that may justify the optimistic predictions listed above.
What is CBD?
Cannabidiol (CBD) is nothing new. The substance is one of the 113 cannabinoids that have been identified in cannabis plants, and it was discovered in 1940. This non-psychotropic substance is partially responsible for the soothing effect associated with cannabis consumption, and it has plenty of medical applications.
What is driving the growth
There are many reasons why the CBD market is seeing a sudden growth, and why it might continue growing into the future, according to a Endoca in-depth review. These reasons include:
1 – Medical properties. The recent interest in CBD’s medical properties came after Charlotte Figi, a girl who suffered from chronic epilepsy and saw a great reduction to her symptoms after being given medical Marijuana. Specifically, a high CBD, low THC strain of the drug. Charlotte’s case piqued the public’s interest in CBD and its medical properties, which has led to an increase in research and usage of the substance.
2 – Legalization. In part due to Charlotte’s case, CBD is now legal in all 50 US states and is being made legal in many regions around the world, including most of Europe, Japan, and South Africa — the latter made CBD legal as a temporary measure, and the product has exploded in popularity since.
3 – Applications. On top of being a seizure suppressant, CBD also has anxiolytic and anti-inflammatory properties, which has led many to start using the substance as a way to treat pain, anxiety, and some chronic conditions. Recently CBD’s anti-inflammatory properties have also attracted the attention of the beauty industry, which started adding the substance to masks, salves, and creams — increasing the demand.
4 – Visibility. Many public figures, including politicians, pro-wrestlers, MMA fighters, podcasters, athletes, and movie-stars are now endorsing CBD and its various usages, vouching for the product’s effects. This is driving up the demand for the substance, maybe more than anything else in this list.
What can hurt this growth
The biggest danger for the CBD market right now may very well be the legal status of the substance. Many legislators and citizen groups are worried about the spread of the substance, and suspicious of anything that comes out of Cannabis in general. Should the use of CBD ever be limited to medical use, or forbidden entirely, the optimistic growth projections listed above won’t hold.
While the CBD market may seem like a wildland at times, there are already regulations on the substance. Most countries only allow the sale of CBD that contains under 0,3% of THC, which is a guideline that reputable sellers like CBD51 abide by. It remains to be seen whether that regulation will be enough, or if politicians will limit the production and consumption of the substance further.
