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cbd industry projected growth

Cbd industry projected growth

Furthermore, California’s Department of Health would overturn its hemp ban were the FDA to give hemp products a green light, meaning this decision is not set in stone and is ultimately a move to protect consumers. A legitimate hemp industry will also have a vested interest in protecting consumers, thus health and safety concerns of this nature would be better addressed with the legalization of hemp at the national level, which would expedite and facilitate their resolution among federal agencies such as the FDA.

Beyond growth potential, these numbers might seem out-of-touch because of the legal hurdles still acting as a barrier to the sales and consumption of hemp CBD, and skepticism about the significance and reach of the Hemp Farming Act (Farm Bill) of 2018.

CBD is effective for various conditions, while remaining natural, non-psychoactive, and provides no known serious side effects. It can be grown domestically as a substitute for tobacco and provide a much-needed cash crop for American farmers. Globally, CBD markets are popping up, with growth seen in Canada and Europe. Canada saw over $3 billion in CBD revenue in 2020 from various products ranging from prerolls, oils, edibles, brinks, and vapes.

We recognize that these estimates are shocking, and we stand by them. Hemp-derived CBD has been gaining huge momentum in the shadows of its oft-spoken about cousin, marijuana, allowing its growth to be largely overlooked – both by analysts in the nutraceuticals industry, medical industry, and cannabis industry. Because the product not only operates in a legal grey area today but also retails in a broad and extremely diverse range of channels and does not cleanly fit under any one category of product, understanding where and how much CBD is being sold is a monumental task.

Legal and Political Concerns

Setting about sizing this market led us to speak with hundreds of people, crunch tens of thousands of numbers and research a great deal behind our desks – leading us to understand that the hemp-derived CBD market is indeed growing at a breathtaking pace. It is popular among vendors from smoke shops to chiropractors and consumers from decorated veterans to soccer moms. Even catching the eye of celebrities like Jennifer Aniston, Gwyneth Paltrow, Olivia Wilde, and Kate Hudson, who have aimed to give consumers a glimpse into a glamorous and healthy lifestyle infused with CBD products.

Note: This is an update to our 2018 forecast where we estimated the hemp CBD market to reach $22 billion by 2022. For further analysis on this, jump ahead to CBD Worth 22 Billion by 2022? That’s Crazy Right?, which is a note from Bethany Gomez — Brightfield Group’s Managing Director.

We have no rose-colored glasses in terms of the bizarre and challenging regulatory framework that surrounds this industry and it may always be two steps forward, one step back. It may come across more problematic regulations and bumps along the way, especially as delta-8 enters the scene. But there is too much momentum, too much demand, and too much potential for this industry not to continue expanding toward the forecasted $16 billion by 2025.

Sheer Growth

Some might posit that even if the Farm Bill were to pass, states would not be required to create hemp programs or regulatory systems, leaving producers, retailers, and consumers in those states in the same conditions they’re in today. We believe, however, that while states’ rights to bar hemp are relevant, they do not present a real threat to the success of this industry. In fact, today there are only four U.S. states that do not allow CBD and federal legalization has not taken place yet. An additional two states – California and Ohio – have prohibited hemp sales specifically, but even considering these cases, it would not be reasonable to assume any significant number of states would be inclined to ban hemp sales were the Farm Bill to pass.

To be clear, Brightfield Group does not expect hemp CBD to be an exclusive nutraceutical product in the future. It will continue to be popular among current cannabis users (bought in dispensaries, smoke shops), have potentially massive value in the pharmaceutical sector (e.g. Epidiolex/Sativex), and as an over-the-counter drug. The $22 billion market forecast should not be entirely attributed to hemp CBD’s growth within the nutraceutical category.

CBD market sizing

The report offers an up-to-date analysis regarding the current global market scenario, latest trends and drivers, and the overall market environment. The market is driven by the rising popularity of CBD oil and rising number of countries decriminalizing and legalizing CBD products.

CBD market forecast

The report on CBD market covers the following areas:

The CBD market is segmented as below:

The publisher has been monitoring the CBD market and it is poised to grow by $29.91 billion during 2021-2025, progressing at a CAGR of 26.93% during the forecast period. The report on the CBD market provides a holistic analysis, market size and forecast, trends, growth drivers, and challenges, as well as vendor analysis covering around 25 vendors.

Dublin, Dec. 30, 2021 (GLOBE NEWSWIRE) — The "Global CBD Market 2021-2025" report has been added to ResearchAndMarkets.com's offering.

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