Predictions for the CBD Industry
By: Joseph Giouard
Joseph Giouard is a Boston-based CBD entrepreneur and thought leader.
Cannabinoids enjoy a reputation of being organic and safe. As extractives of the marijuana or cannabis plant, cannabinoids do not get users high or possess any psychedelic side effects. Many users have reported relief from depression, anxiety, pain, and sleeplessness. The year 2020 saw an estimated 2.8 billion dollars in sales of CBD products. That number is predicted to reach 3.5 billion dollars in 2021 and 13.4 billion by 2028.
The CBD industry will have to evolve to sustain that much growth. These are some of the things to watch for.
Increased Legalization of Marijuana Across the United States
More states are considering the legalization of medical and recreational marijuana through the year 2025. Since the cannabinoids that are used in CBD products are extracted from marijuana plants, the sale and use of CBD products are also controlled and regulated in states that have not legalized marijuana use. Legal CBD products must contain less than .3 percent THC or tetrahydrocannabinol, the psychotropic ingredient in marijuana, so states that have not legalized marijuana in any form will also not allow CBD products to be sold because of the small percentage of THC they contain.
If states continue the trend of legalizing marijuana, CBD products will also be legal and the market can see increased sales and profits.
CBD Companies will Increase in the Stock Market
Reputable CBD companies that have entered the market in the past two years have presented effective products and made a splash across the US economy. They have done well in the stock market even through the uncertainty of the global pandemic. Many of these companies offer CBD in many forms including tinctures, creams, and pain patches, and offer products for anxiety and stress relief, sleep aids, and even pet products. As they continue to develop products and perform well on the stock market, they will draw more investors’ attention as the market evolves.
Consumers Looking for Organic Products will be Drawn to CBD Companies
Organic, natural foods and supplements are perceived as being healthier than other alternatives. One recent poll showed that 34 percent of participants chose organic products because they wanted to avoid harmful toxins in their food. Additionally, third party testing to verify purity adds credibility to companies trying to sell organic products.
The CBD industry has an advantage when it comes to demonstrating these qualities. Trustworthy, reputable CBD brands will provide customers with Certificates of Analysis (CoA) which proves that their offered CBD products are pure and potent. These tests are conducted by third party laboratories which also scrutinize the products for any impurities or toxins.
This built-in safeguard will continue to draw consumers who want safe, natural, pure products.
New Cannabinoids will Become Available
The current success of the CBD industry is spurring research for the development of different cannabinoids that may also present health benefits.
1. CBG – Cannabigerol has been shown to regulate appetite and sleep and help to alleviate pain.
2. CBN – Cannabinol relieved pain in rats during a 2019 study. It may find an application for chronic pain sufferers such as those who have conditions like arthritis or Fibromyalgia. It may also stimulate the appetite and help those who have trouble eating because of cancer treatments or conditions like HIV.
3. CBC – Cannabichromene has been found to encourage brain growth. It strengthens the viability of developing brain cells through a process called neurogenesis.
These cannabinoids hold promise for the continued development and use of CBD products.
