In the past few years, the market has grown remarkably. Experts point out that the industry will be worth a whopping $22 billion by 2024. It’s now common to come across hemp and CBD-infused products being sold online and in dispensaries. This attests to the remarkable growth of the industry.
A Quick Recap of What It Does
It is the non-psychoactive and legal extract of the cannabis plant. Unlike THC and other extracts of the cannabis plant, it doesn’t have a psychoactive effect on users. Instead, it has a host of benefits, including:
- Anti-inflammatory effects
- Improves sleep quality
- Reduces stress and anxiety without getting you high
- Boosts memory and cognition
- Market Segmentation
Generally, the market is segmented based on product, form, source, end-user, and application. By form, you can find either purchase liquid or solid products. The liquid products come in the form of creams, tinctures, e-liquids, oil, and cream. Solid products come in the form of wax, crystals, hash, and capsules.
By product, you can either purchase food-grade or therapeutic-grade CBD products. Currently, food-grade CBD products are more popular, but experts predict that therapeutic-grade CBD products will dominate the industry in the coming years.
By source, products can either be extracted from organic or inorganic hemp plants.
By end-user, the market is segmented into food beverage, healthcare, and others.
The Current State of the Market
The legalization of marijuana in some states has gone a long way in making it mainstream. Today, it’s easy to find it being sold in a dispensary or food store near you. In Texas, Elevated Wellness CBD has five locations throughout the state all focused on CBD wellness products.
The market has been witnessing increased demand for the product due to the numerous benefits that it offers.
Other factors that are propelling this growth include technological advancement, increased investment in cannabis research, and the increased usage of cannabis products in the medical community. Thanks to the ever-growing demand for CBD products, it’s common to see major retailers such as Botanicam running out of stock all the time.
Currently, marijuana use isn’t fully legalized. Some states still have strict rules relating to the use of the products. Needless to say, the strict rules impede the market. With more embracing CBD, it’s expected that the rules will be relaxed in the coming years.
Trends Dominating The Market
Here are some of the that will dominate the CBD market for years to come
More Pain Relief
When these products hit the market for the first time, they were largely touted for their pain-relief benefits. Users were largely buying products to help with pain relief and nothing else. With time, it was discovered that it offers more benefits that go beyond pain relief.
This realization played a significant role in expanding the market by increasing the demand for CBD products. Recently, we’ve experienced a shift with more people buying CBD products to experience its inherent benefit; pain relief. Since this is what CBD oils do best, products that offer pain relief are literally flying off the shelves. Expect this to continue in the coming years.
The Rise of Facials
You’ve probably used or heard about creams, lotions, and ointments, but have you ever spared a moment to think about CBD facials? Well, this is the newest baby in town. The CBD skincare market is expanding remarkably as more people wake up to the benefits that cannabinoids offer to the skin. Today, it’s normal to find CBD facials being used in spas.
Brand-Owned Cannabis Farms
Manufacturers are choosing to grow their own hemp rather than outsourcing hemp from farmers. Brand-owned hemp farms give manufacturers more control over their products. With this, expect the introduction of more CBD strains into the market. With more control over the supply chain, brands will be able to innovate and even come up with new hybrid varieties. Mana Botanics grows their own hemp and a majority of their ingredients on their farm in Hawai’i, and is focused on serving the triple bottom line.
Increased transparency in the Market
When products hit the market for the first time, there was little control by regulatory bodies. Few people understood what these products were, and some unscrupulous manufacturers and retailers took advantage of this to make outrageous claims about their products.
Research has helped to unravel the benefits of CBD. This has helped to create more public awareness. Regulatory bodies are also playing catch-up, and this is attested to by the recent FDA cracks on the CBD industry to weed out disreputable sellers and manufacturers. Furthermore, stringent regulations are being put in place to regulate the industry.
The Widespread Use of for Medical Purposes
Clinical trials have unearthed evidence regarding the compelling medical benefits of the oil. This sparked the current boom in the industry before the recreational use of products took over. The discovery that it offers dozens of medical benefits has seen it getting embraced by the healthcare community.
The Growing Popularity of Hybrids
The CBD market is today dominated by hybrids. The cannabis strains and products that you’ll come across are different from what as there in the past. Notably, the strains that currently populate the market are less potent than what was in the market in years gone by. Today, we have a buffet of oddities such as multivitamins, facials, and Kale protein chips.
With the CBD craze that has seized America’s attention, expect to see even more peculiar CBD products and strains in the coming years. However, this will also have its drawback. As new strains and products get introduced to the market, there will be more focus on hemp growers, manufacturers, retailers, and users by regulatory agencies such as the FDA.
Final Thoughts: What the Future Holds
Judging by the current situation, the future of the CBD industry looks bright. In the coming years, the industry will be as big as other mainstream markets. More people are realizing the benefits of the hemp plant and its extracts, and this is the silent force behind the impressive growth of the industry. Since this is a versatile product, its growing popularity offers hemp growers, CBD manufacturers, and retailers a lucrative opportunity.
