A group of Cowen analysists recently determined that by 2025, the CBD market could reach a whopping $16B. Their findings are based on trends in CBD consumption throughout the United States. To hardcore hemp enthusiasts, this report shouldn’t really be all that surprising as it’s clear that CBD is taking over the natural health market. So, how did CBD become such a massive market, and why is it growing so quickly that even pharmaceutical companies are taking notice?
Cowen determined that the CBD market should reach the $16B marker by 2025 by surveying about 2500 regular hemp users. The survey found that the average user consumes about $640 worth of the cannabinoid annually, which comes out to around $2 daily. This is about a 40 percent increase in money spent on CBD in the United States compared to just a few years ago, making it clear that the market is growing at a rapid pace. It’s worth noting that the analysts conducting the survey were quite surprised by these numbers.
The study noted that in January of 2019, about seven percent of CBD users considered the cannabinoid an essential daily supplement, much like their once-a-day vitamins. This shows that a large number of Americans are taking CBD daily as a preventative as opposed to a form of medication, which demonstrates that this cannabinoid isn’t just being used by people who are suffering from some sort of ailment.
It concluded that by 2025, about 25 million Americans will likely be consuming CBD. The data also went on to predict that the CBD market will continue to widen in terms of its catalog, and that within a few years, we should expect to see CBD-infused beauty products and other daily household items that are enhanced with hemp extract.
What’s Working in the Market’s Favor?
In order for the CBD market to hit this projection, there are several factors that are helping this industry thrive.
New Laws Regarding Hemp Cultivation
The Hemp Farming Act of 2018 was created as a way to remove CBD from the list of classified substances. Up until then, CBD was grouped in with marijuana because of the fact that both hemp and marijuana come from the cannabis family. This act was incorporated into the new Farm Bill that became law in December of 2018.
What this means is that hemp farmers can thrive like never before. It also means that there is no more gray area in terms of whether or not hemp-derived CBD is legal. Surely, this change in hemp’s legal status has had quite an effect on the industry and will continue to push the market toward further success.
The Wellness Market
The wellness market in general is booming as more and more people are taking an interest in natural, alternative forms of medicine. Why that is isn’t exactly known, but it’s clear that fewer and fewer Americans are wholeheartedly trusting the medical industry and are interested in taking their health into their own hands. Since CBD falls in line with the holistic medicine trend, it makes perfect sense that it’s so successful right now.
New Research Leading to a More Hemp-Friendly Medical Industry
As the CBD market continues to grow, more and more medical researchers are discovering unique benefits of this compound. Today, the general public and the medical community have access to a massive amount of research demonstrating the unique benefits of CBD. This means that the demand for CBD is growing among the general public while the medical industry is beginning to pay attention. These days, it’s not unusual for a physician to recommend CBD to their patients because of the proven effects that this compound has to offer.
Pharmaceutical Companies Taking Notice
Pharmaceutical companies are beginning to notice that CBD is possibly a highly effective compound that can be used to treat a wide range of ailments. Therefore, there are currently several drugs in development that utilize hemp extract to treat a range of conditions. Currently, one CBD-based drug is on the market and it’s used to treat pediatric epilepsy. But, as more and more CBD-based drugs are tested, we can expect this compound to appear on the shelves of our local pharmacies.
Widespread Popularity Among the General Public
Of course, the real thing that’s helping this industry grow is its popularity among the general public. More and more people are taking CBD every day purely because of word-of-mouth recommendations. And, most people are finding that it’s highly effective, which means that they’re likely to become daily users, thus contributing to the market.
Continuing in the Right Direction
As the hemp and CBD industry continues to grow, it’s clear that this compound isn’t just a passing fad. With more medical professionals taking notice, we can expect to see the market grow like never before in the next several years. And, of course, that means that CBD will be more accessible to those who need it the most.