Two years after the passing of the 2018 Farm Bill, CBD sales hit $5.4 billion. The industry’s growth has been remarkable, with investors seeking to broaden product delivery. It is not surprising to find CBD edibles online and in some large-scale retail stores. People are embracing the availability of various products for their multiple uses.
Business analysts admit that the growth of the CBD industry is remarkable, considering a few years back, it was entirely nonexistent. Is it a lucrative venture? Investors are looking to join the growing business, so it is understandable to wonder how much potential it carries.
For decades marijuana use has been considered illegal. At the federal level, weed growing and selling is still illegal. The state levels are somewhat different as some states allow its use for medicinal purposes and others for adult use. The effects of this can be seen in individual states like Colorado, where its residents can buy, sell, and grow cannabis if they have the proper certifications.
Once cannabis was made federally illegal, all its cannabinoids were lumped into the legislative. WADA is one of the examples of the ripple effects of the decision. They outlawed the use of weed and any other cannabinoid. This was the case for decades until 2018.
2018 saw the passing of a Farm Bill that allowed Americans to grow Hemp plants for selling. The passing of this bill necessitated the legalization of CBD, as it is a primary compound found in these plants. Another aspect that led to the legalization of the compound was its influence on medicine.
Even before prohibition, researchers agreed that the intake of cannabis had some health benefits for the users. The traveler that brought it from India reported that they used the plant for an array of medicinal benefits. Advancements in extraction technology led to the determination that the plant has over 100 cannabinoids. The zeroing in on CBD was due to its ability to help with pain, stress, and more conditions.
After passing the bill, WADA dropped CBD from its prohibited list, and the FDA also assented to its valuable benefits. In 2018, the FDA passed the production of an epilepsy drug that contained amounts of CBD. These actions have had a hand in promoting the sale and production of other CBD products.
Currently, there are different types of CBD edibles being sold worldwide. You have the typical cookies and brownies, but there are also gummies, chocolates, juices, oils, and tinctures. If you are wondering is CBD edibles legal, then the answer is yes. If the manufacturers abide by FDA regulations and have the proper certifications, they can sell their infused products.
Other than edibles, CBD is being infused in other products. In the United Kingdom, cannabinoid has replaced Vitamin C and E as the most in-demand product in the beauty and skincare industry. Its introduction into skincare has resulted in an array of benefits, from smooth skin to reduced inflammation and even doing away with hyperpigmentation.
CBD skin care products can be found in creams, moisturizers, relief balms, lip balms, and so much more. In addition to the beauty industry, cannabinoid is also making strides in the fashion industry. Due to advanced technology that has managed to coat CBD molecules in polymer before attaching them to clothes.
There is now an increased number of fashion brands selling CBD-infused clothes. The novelty of these garments is that they release the cannabinoid into your body’s endocannabinoid system resulting in their antioxidant and anti-inflammatory effects.
The Future of CBD
Investors are primarily interested in the future of this fast-growing enterprise. Considering the range of products offered, and the increase in the same, sales are expected to skyrocket. In 2020, global CBD sales were at $2.8 billion.
This figure is expected to rise at a compound annual growth rate of 21.2% between 2021 and 2028. The estimation for the same growth in the United States alone is expected to hit $16 billion by the year 2026. Other statistical analysts expect the value to go over $20 billion.
Some of the top-selling CBD products were vitamins. The sale of these vitamins accounted for a 4% sales margin over other types of vitamins. By 2025, the amount is expected to increase to 20%. In 2020, the products considered as novelties were balms and lotions with the introduction of the CBD skin care lines.
Considering the introduction of the fashion lines, they are expected to hit the top-infused products that individuals are interested in. The CBD industry seems to be coming up with new products daily, which shows that the estimated numbers may be surpassed in the near future. The analyzed statistics represent the CBD sector, not the comprehensive marijuana industry. In hindsight, the fast-growing nature of this sector may result in higher sales than the estimated values.
For these estimations to be realized and for them to be surpassed, certain elements are needed. To begin with, the FDA is yet to list the cannabinoid as a dietary supplement. As it stands, it does not allow producers to label their infused products as containing dietary supplements.
This restriction may seem small, but it prevents the products from being widely sold. Doing away with their added regulations will grant the manufacturers freedom to produce a wide range of goods and to infiltrate specific markets where they have been restricted. In states like Ohio, the sale of CBD products is not allowed, partly because it is associated with the drug.
With federal backing, it is foreseeable that these restrictions will soon be done away with. Federally, CBD distributors and handlers can apply for loans at national institutions and banks. This opens up new possibilities currently inaccessible by the weed industry. This support could lead to the dismissal of specific regulations hence propping the CBD industry for untethered success.
Fascinating Facts about CBD
Edible CBD effects have brought about a range of benefits for users. There have been increased concerns about what cannabinoids can do. These are some fascinating facts that you may not be aware of;
CBD is Non-addictive
Unlike other drugs, CBD compounds are in no way addictive. Users can use them religiously for years, and when they stop them, there are no adverse effects. In support of the same, the FDA and WHO have pointed out that the product is safe for use by people.
The Cannabinoid can Stimulate Animals
The human body contains an endocannabinoid system that interacts with the CBD and leads to stimulation. Animals also have the same, which makes CBD use effective. Though animals can only tolerate small amounts of the compound, it has been proven that it helps them.
Children can use CBD
The first studies to show that cannabinoids can be helpful in health issues involved children. It was with the treatment of epilepsy. WHO has shown that the compound is safe for use among children. The only matters involved are dosage and the type of products used.
CBD Use is Detectable on a Drug Test
Contrary to common belief, CBD can be detected on drug tests. Some believe that since the product doesn’t get one high, it cannot reflect. This is false. Since it is ingested into the body and reacts with the systems, a test can detect its use. Regardless of the same, it is not illegal to test positive for the cannabinoid.
The CBD industry has been growing over the years. Since 2018 it has been on the rise, with the estimated sales expected to go above $20 billion. The legalization of the cannabinoid has a lot to do with this spike in sales. Also, with the introduction of new products every now and then, it is only understandable that users will remain interested. Despite some restrictive regulations, the industry is getting federal support as well as peaking investors’ interests. The future of the sector is perceivably quite lucrative.