You’d be forgiven for thinking that the lion’s share of interest in the US cannabis market would go the way of traditional recreational pot. In reality, the popularity of therapeutic cannabis is growing at its fastest ever pace, fuelling an enormous boom in demand for CBD products.
To such an extent that the market could grow by more than 700% within the next two years.
An article published by the Hemp Business Journal projects spectacular growth for the hemp-derived CBD in the United States, which is already proving enormously lucrative for its key contributors. In 2018, the hemp industry in North America generated around $820 million in total sales. Hemp-derived CBD products accounting for around $190 million of this. On the back of growing demand for high-quality CBD products, it’s now widely expected that total sales for 2019 will surpass $1 billion for the first time.
Give it a few more years and the hemp-derived CBD product market alone could hit a record $2 billion in consumer sales.
Of course, you could argue that this $2 billion doesn’t really scratch the surface of the projected $25 billion legal cannabis market in 2020. Recreational cannabis being expected to generate approximately $11.2 billion, with medical cannabis remaining the key economic contributor with its $13.3 billion in sales.
Nevertheless, it’s important to remember two things. The first of which being the fact that the projected growth for the hemp-derived CBD products market doesn’t take into account the potential for other states to legalise recreational and/or medical cannabis over the coming years. In addition, the development of quality CBD remains something of a niche and unexplored business area, given that the vast majority of those buying into the cannabis industry are looking to tap into the standard recreational side of things.
This is precisely why those with inside knowledge are beginning to target the CBD market with more aggression than ever before. CBD products are making enormous headway in various regions across the United States, fuelled by a growing demand for health and wellness products among a variety of demographics. There are already somewhere in the region of 800 CBD products available in Washington, which for the most part are sold as health and wellness products.
The fact that CBD can have beneficial effects on the human body without any psychoactive effects increases its appeal to those who aren’t interested in getting high. CBD is consumed purely for its therapeutic benefit, rather than achieving a sense of temporary euphoria.
For example, a number of scientific studies have confirmed CBD’s potential to treat and reduce inflammation, reduce the intensity and frequency of seizures, and combat the effects of certain neurological diseases and so much more besides. In fact, it’s even been suggested that CBD may have remarkable anti-carcinogenic properties and could eventually be used as an effective treatment for cancer.
So on one hand of the market, you have those interested in using cannabis simply for pleasure purposes. Which is, in no uncertain terms, an enormous market. At the opposite end, you have those who aren’t interested in getting high, but simply want to look after their bodies and/or treat existing medical conditions. In both instances, demand is growing at record-pace across the whole of United States.
Just to put things into perspective, the health and wellness industry is valued at an estimated $3.75 trillion. If innovative CBD product manufacturers can tap into even the tiniest percentage of this, the pickings could be rich, to say the least.