Had you have spoken to financial analysts 10 years ago, we doubt they would have predicted the exponential growth of the CBD market across the global stage during this period.
Ten years ago, cannabis and derivative products was still classed as an illicit substance in many countries that have now adopted cannabis-based medicine in some form.
What Is CBD?
Firstly, CBD is not necessarily cannabis, but it does come from the cannabis stevia. CBD is a single compound out of the 421 that are found in cannabis and it has been linked to numerous health benefits with the body of research still growing. These health benefits are the driving force behind the growth of the market, with Government agencies backing large projects.
Market Growth in The USA and Canada
The analytics for market growth, particularly in the United States and Canada are based off licenced dispensaries. It is worth noting that especially in Canada, not all CBD products are authorised by the government and there is an extensive black market for home cultivated products, so the figures related to the sale of these products could be further increased.
In the USA and Canada multiple studies have been conducted and all conclude that the current value of the market stands at around 4.6 billion US Dollars annually is expected to grow year and on year until 2024. This is the figure for 2018, we are still waiting on the 2019 figures to be released.
Market Growth Breakdown
The figure of 4.6 billion USD is all cannabis related products that are currently being sold through the US and Canadian governments licenced agencies, but this figure embodies a variety of products within this market. These products include medicinal marijuana, CBD oil, tinctures, gummies, CBD products for pets, and even CBD infused coffees.
Why Is The Market Growing?
The market is growing at the rate it is due to the product diversification that has occurred in the last 5 years. It is still recent history that the only way you could use cannabis was to smoke it, now with different products available the market opportunities have vastly increased.
The stigma of using cannabis has been removed as it now offered in far more palatable products. People using CBD in products such as infused gummies or as oils may never have previously considered using cannabis in its more traditional form. Another reason for the exponential market growth is the isolate product market.
Not all CBD comes from hemp, which is lower in the psychoactive component, THC, some does come from the traditional cannabis stevia, which still has this psychoactive ingredient. Businesses are understanding of the fact that not all potential users want to experience this psychoactive component so have adjusted their product lines accordingly.
Through diversification and giving users the opportunity to choose different cannabis derivatives, it has split the market wide open and businesses are capitalising on it.
Future Growth Trends
We aren’t going to stop seeing new CBD products on the market and taking CBD will become more of a social norm over the next few years.
Verma Farms, one the USA’s leading hemp cultivation organisations are predicting market growth up to 23.7 billion USD by 2023. This is a compound interest growth rate of approximately 107% per year, each year moving forward and these are only the figures from the USA, there is yet to be a report released that predicts global growth over the next five years.
The market for CBD and CBD related products isn’t going to stop increasing anytime soon. With increased research into its medicinal properties and product diversification, we are only going to see it increase further.