The Farm Bill signed in December 2018 was, without a doubt, a game-changer. The bill legalized the cultivation of industrial hemp, which is known for producing high concentrations of cannabidiol (CBD) and only trace amounts of THC. THC is the primary psychotropic agent, and it’s what gives users the out of body high.
CBD is non-psychotropic, and it’s known for the plethora of benefits it affords its users. For the past decade or so, CBD has become a lot more mainstream, and more people are now aware of its health benefits. Living as we are in a time when people prize clean, natural remedies, the explosive demand for CBD was almost a foregone conclusion.
After hemp cultivation became legal, tons of hemp farmers, processors, and sellers flooded the industry to cater to the immense demand for CBD-infused products. According to projections from the newly released 2019 Hemp and CBD Industry Factbook, retail sales of CBD in the U.S. are expected to surpass $1 billion this year, an increase of 133% from last year’s figures.
The Factbook speculates that the increased accessibility of CBD products, thanks to the surge of sellers in the market, and the ever-growing demand for cannabis-infused products will drive retail sales to about $1.1 billion – $1.3 billion in 2019.
Projections from Hemp Industry Daily put CBD retail sales at $10.3 billion by 2024, a mind-boggling five-year compounded annual growth rate of 54%. As sellers flood the industry to cater to the demand, sales are expected to double over the next few years.
CBD products are more accessible now than they’ve ever been. Studies show that more people are opting for CBD as a natural remedy to their ailments. CBD can alleviate common problems such as stress, insomnia, and pain, and this is partly why the demand for the product has boomed.
Analysts have been unable to keep up with the demand, and they’ve been scrambling to develop reasonable estimates for the current and future CBD retail sales. These projections were based on an in-depth analysis of the CBD market as well as industry surveys.
However, it doesn’t take into account the many variables and unknowns that surround the industry. For instance, the sector lacks relevant federal regulations to govern CBD in foods and beverages, and the impact of the immense surge in supply on the market has not yet been adequately researched and quantified.
It is widely thought that industry insiders like The Supreme Cannabis Company Inc. (TSX.V: FIRE) (OTCQX: SPRWF) and Geyser Brands Inc. (TSX.V: GYSR) are counting on this continued bullish trend of demand for CBD products.
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