It’s been featured in lifestyle magazines, health food shops, and many are predicting that the near future may see CBD ranges on the shelves of your local supermarket. With the CBD market experiencing an unprecedented boom, what is driving analysts to forecast a $22 billion industry?¹
There’s A Good Chance You’ve Heard Of CBD
To understand why CBD has become an addition to medicine cabinets the world over, we need to quickly recap its key attributes. The cannabinoid is one of hundreds of compounds that exist within the Cannabis sativa species. It won’t get you high, and the World Health Organisation recently reviewed CBD, stating that it does not have addictive characteristics, nor does it have any significant side effects.
So far, so good, but even though it won’t do you any harm, it doesn’t explain why virtually every demographic is giving the substance a try.
Why Is CBD So Popular?
The appeal of CBD comes from the growing catalogue of research taking place. Results suggest the compound acts as an anti-inflammatory, mild pain reliever, anxiety aid, digestive support, and much more. Many individuals are turned off by the increasingly harsh side effects of pharmaceutical medication, and turned on by the natural approach of CBD.
To add to the healthy-living boom, CBD can be incorporated into one’s diet in a huge variety of ways. The oil can be added to tea or coffee, softgel capsules are easily included as part of a supplement routine, and several CBD edibles have started to gain traction. No matter where you are, or who you are, CBD is easy to consume. With such a diverse toolkit, it’s hardly surprising that the compound is experiencing a sharp and rapid rise in popularity. However, the path to money-making heaven isn’t entirely clear. CBD is still tenuously linked to cannabis, and that is causing serious issues for startups and well-established companies alike.
Opportunity Is Rife—If You Can Navigate The Confusing Legislation
We say tenuously linked because, although CBD is derived from cannabis, it is more commonly extracted from the subspecies known as hemp. Hemp is generally legal to cultivate as long as it contains less than 0.3% THC. This is where a lot of the confusion from consumers comes into play. CBD is often associated with cannabis and the stigma attached to terms like “marijuana” or “weed”, rather than being thought of as a product of hemp.
The affiliation with cannabis also makes regulators and governments nervous. Many of them find it challenging to formulate regulations that keep CBD and marijuana completely separate. This forces companies to navigate a grey area of legislation—unregulated. Governments cannot half-regulate an industry, and until clear guidelines are laid out for what is, and isn’t, acceptable, the CBD market is filling up with opportunistic businesses by the day.
The Industry Is Expected To Grow Into The Billions
The popularity of CBD will undoubtedly force governments and legislators to put proper guidelines in place, and examples of that have been seen already. In the US, President Trump recently signed a bill that will allow the legal cultivation of hemp, with access to government funding to do so. Given hemp naturally produces large concentrations of CBD and virtually untraceable levels of THC, the move is set to skyrocket the industry.
Similar amendments are being seen in Europe as many countries look to take advantage of this new, previously untapped source of revenue. The basic principle of any booming industry will always centre on “supply and demand”. We know the demand is there, and companies new and old are quickly fulfilling that demand. One thing is for sure, with billions of dollars up for grabs, CBD is being viewed as liquid gold—now, and in the future.
1. Brightfield Group. Next Level Insights. https://www.brightfieldgroup.com/