According to the Global Market Insights, Inc, the CBD market is estimated to have a value of $89 billion by 2026. The exponential growth is a result of the increasing acceptance of CBD use in a range of countries, including the US.
CBD products are now available in the form of oils, tinctures, isolates, vape oils, capsules, creams, and roll-ons. Industries like food and beverage and cosmetics are tapping into the market to take advantage of the growing CBD market.
The pharmaceutical industry was the first to tap into the market when it started producing CBD-based pain killers for cancer patients. Now with more countries legalizing CBD use, the industry is bound to even more growth. Here are more reasons the CBD market is growing in the USA:
1.The signing of the Farm Bill
In 2018, developed countries like the US, Canada, France, and the Netherlands passed the Farm Bill, which allowed the cultivation of hemp-derived products. The Bill explained that hemp would not just be grown for pilot programs as before but commercial purposes. As such, previous restrictions on the sale, possession, and transportation of hemp-derived products were lifted.
While Bill allows the free sale of Hemp-derived products, it does not create an entirely free system as there are still a few restrictions. First, the products should not contain 0.3 percent of THC; cannabis plants that contain higher amounts are considered non-hemp cannabis or Marijuana under federal law.
2. The emergence of New Type of Cannabis Consumer
These consumers don’t exhibit stereotypical stoner behavior, as displayed in the past. Instead, they use CBD to boost their cognitive function, be more relaxed, or address a particular health problem. CBD’s flexibility enables users to use it for different applications hence the emergence of these new consumer groups. Some of their CBD applications include:
- Infusing caffeine with CBD to counter the adverse effects caffeine has on the body
- Adding CBD oil to beauty care products like serums, creams, shampoos, and lip balms
- Going for CBD-infused bath bombs to reduce muscular pain
- Best CBD oils for dogs to provide them with the same benefits as those enjoyed by humans
3.Legalization of Marijuana in the US States
33 US states have legalized the use of Marijuana for medical purposes; this includes 10 of them that allow adults to use the drug for recreational use. Initially, many states considered Marijuana illegal due to the adverse effects it had on users.
However, the stigma is gradually fading as more Americans advocate for its legalization. According to a Pew Research survey, 62% of Americans want marijuana use to be legalized. Also, a study conducted by New York University showed that adults aged 65 and older had increased use seven times to 3%. The study also revealed adults aged 50-64 had doubled use in the past decade.
The legalization of the drug has also garnered strong political support as several 2020 presidential candidates express support for the move. The most notable include:
- Joe Biden, the former vice president, is advocating for the decriminalization of the drug and wants prisoners convicted for possession of the Marijuana expunged
- Senators Kamala Harris, Elizabeth, and Cory Booker, some of the sponsors of the Marijuana Justice Act, are also supporting the expunging of convicts caught with the drug
- Pete Buttigieg, the South Bend Mayor, also wants the drug decriminalized and drug offenses sentences reduced
4. FDA’s Softening Stance
The FDA has always maintained a strong stance when it comes to CBD-related products requiring companies to seek approval before distribution. The agency has, however, softened its stance following the amendment of the Farm Bill. During a press release, the FDA mentioned issuing a regulation to examine CBD ingredients used in dietary and food supplements. It was this decision that caused the agency to approve the use of Epidiolex, a marijuana-derived drug citing it has a low potential for abuse.
With more companies looking to tap into this multi-million market, more states legalizing marijuana use, the emergence of a new consumer market, and the increasing political support, the CBD market is bound to multiply. However, governments still need to exercise caution when supporting CBD use to avoid substance abuse, especially among the youth.