First off, let’s start with where it was in 2018. According to multiple sources, I’ll cite Statista, the CBD market was at approximately $500 million. So, how big will the CBD market get? Predictions range from $2 billion to $22 billion over the next few years.
CBD Market Projections – Brightfield Group
An article in Rolling Stone highlighted the following findings from Brightfield Group, which is a group that provides “predictive market intelligence for the CBD and cannabis industries.”
“For years, experts have predicted that if the cannabis industry expands at its current rate, the American market will reach $20 billion by 2020. But it turns out that one market is spinning off into a mega-industry of its own: according to a new estimate from cannabis industry analysts the Brightfield Group, the hemp-CBD market alone could hit $22 billion by 2022.”
Later on in the article:
“‘What we started tracking this year was an explosion — face mask, bug bites, skin care, topicals,’ says Bethany Gomez, director of research for the Brightfield Group, who shared the analysis exclusively with Rolling Stone. ‘It’s being used for everything you can think of — sports, triathlons. People want to buy it for their grandma, for arthritis. Women get it for PMS and endometriosis — common things that people have been using over the counter medications.'”
CBD Market Projections – Forbes
“Yet even more fascinating was the projected estimate Cowen analysts made about the revenue of this market–$16 billion by 2025. This number is a marked jump from the estimated retail sales of CBD consumer products in 2018 that ranged between $600 million and $2 billion. Although CBD is technically legal as a result of the Farm Bill that passed late last year, the legal marijuana economy is still fragmented as a result of the federal illegality. Currently, 33 states and Washington, D.C. have legal medical markets while 10 states (plus D.C.) permit recreational use.
“This beggars the question: Is the $16 billion projection an accurate reflection of the realities of the present market or is it aspirational? With CBD not yet tested or approved by the Food and Drug Administration, the agency has been cracking down on businesses making medical claims. Other states are following suit. Last month in New York City, the Department of Health ordered that restaurants, bars and other venues cannot sell CBD-infused edibles as the FDA maintains that CBD is not “safe as a food additive.””
The whole article is very informative, you should check it out, but one of my key takeaways here is that state regulators appear to be following the path of least resistance when it comes to regulating. In other words, they appear to be cracking down on the brick and mortar businesses that they regularly see. Maybe companies operating online can do so more under the radar than companies with physical locations.
CBD Market Projections – Statista
According to Statista, “It is expected that U.S. consumer sales of cannabidiol – usually abbreviated as CBD – will reach around 1.8 billion U.S. dollars by 2022. That would be a massive increase from around half a billion dollars in 2018. Thus, the CBD consumer market is following the trend of the total legal cannabis market in the United States, which is projected to be a 23-billion-dollar business by 2025.”
This projection is on the more conservative end of the spectrum and we think it will grow much more quickly than that because CBD and cannabis appear to be headed out of prohibition very quickly.
Where CBD Growth Will Come From
In our previous article, CBD and Chill, our analysis led us to believe that the best way forward for the CBD market would be with food products that help people relax and relieve stress. And the researcher interviewed by Rolling Stone agrees:
“‘A few years ago, the sentiment was that all hemp drugs were snake oil, they were just trying to capitalize on trends,’ says Gomez. ‘There’s a lot more serious companies that are involved with it, and we’re seeing products that are coming out with higher and higher dosage levels. So for a lot of conditions like anxiety or chronic pain, it’s debatable whether or not a very sophisticated pharmaceutical product would be more effective than some of these products that are essentially OTC.’
“As consumers shift away from pharmaceutical companies and look for natural remedies, CBD seems to be the drug of the future. ‘It’s everything people believe to be good about marijuana,’ she says. ‘Without the downside of getting stoned.’ That is, if you’re into that sort of thing.”
Savvy marketers in this space should embrace this and continue to grow this industry into the behemoth that it looks like it will become.