7 Predictions for the Cannabidiol Industry in 2020

January 2, 2020 16:00:38

If you’ve been paying even the slightest attention to the news, you have undoubtedly heard about cannabidiol, more commonly known as CBD. The market for the hemp extract blew up after the 2018 Farm Bill legalized cultivating industrial hemp, with experts saying it will hit at least $20 billion by 2026.

CBD has made quite a name for itself in the medical, sports, and health and wellness communities. The compound is a potent medicine, said to be effective against a plethora of diseases. Last year, the FDA approved a CBD based drug to treat seizures in severe childhood epilepsies. CBD is clearly here to stay. Several predictions have been made for the CBD industry and we have captured some of the most outstanding ones.

Brenda Verghese, Vice President of Research and Development at Stratos THC, Colorado predicts that the current state of uncertainty in the CBD industry will remain. And as long as the industry remains unregulated, it will become even more saturated by smaller players. On the other hand, if the FDA and the USDA come up with regulations, many existing companies will be unable to keep up with the costs of adhering to the rules, and they will drop out.

Patrick McCarthy, ValidCare CEO says that with time, U.S. consumers are going to wake up to the fact that certification and dosing matters. There’s currently very little research on CBD dosing and interaction with other drugs, with most people playing it by ear. He argued that that will soon be a thing of the past as they will start paying more attention to product safety.

Ross Burtness, founder of San Diego-based ReGrow says the mass adoption of CBD products will lead to a more compartmentalized line of products aimed at new and existing consumers. He adds that stricter regulations will push the market towards adopting proper hemp genetics, DNA markers and compliant resin varieties.

Priyanka Sharma, co-CEO Kazmira, says that to comply with USDA’s regulations on hemp testing, there will be an increased investment in genetics and harvesting technology, accompanied by an increase in research on cannabinoids and various hemp varieties by universities.

Michael Bronstein, President of the American Trade Association for Cannabis and Hemp, predicts that the complexity of the business and supply issues will favor early adopters who can produce quality and consistent products at scale. He says that players will have to contend with increasing competition and regulatory scrutiny before the industry stabilizes.

Russ Cersosimo, co-founder of Hemp Synergetics, predicts that increased regulatory compliance will push many of the first wave extractors and product manufacturers out of business. He says that those who jumped into the industry without any real experience will be challenged to compete successfully in a regulated industry and changing landscape.

Kim Collier, a Montana-based hemp consultant and wellness coach, argues that the industry is at the cusp of expansion, and sellers will have to do more than claim they have the best products. According to the consultant, it will be a collaboration of science, location, products, and ingredients for anyone who wishes to stand out from the CBD industry pack.

It would be anyone’s guess regarding which of these predictions cannabidiol industry actors like LiveWire Ergogenics Inc. (OTC: LVVV) and Dama Financial see as the most likely to cause the biggest impact on the industry in the foreseeable future.

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