Hemp-Derived CBD Will Outpace All Other Cannabis Markets, Projected to Hit $22 Billion by 2022
Robust Growth in Cannabidiol (CBD) and Hemp Market Fueling A VERY Strong Optimistic Outlook
It’s considered to be the largest cash crop in the United States.
Enjoying a growth rate of 77% from 2013 to 2014 and an estimated 700% growth rate by the end of 2018, it’s bigger than corn, bigger than cotton, and bigger than wheat.
I’m talking about hemp, and according to UN data, the global market is valued at about $142 Billion.
To put that in perspective, the global coffee market — one of the most valuable commodities on the planet — is valued at about $80 billion per year.
Each day, legislative and social steps are being taken towards complete legalization.
The total sales for the U.S. Hemp Industry in 2017 were $820m. $190m were for Hemp-Derived CBD products, $181m were for personal care products and $137m were for hemp food products.
The U.S. hemp industry grew 16% in 2017 amidst continued domestic legal and regulatory challenges. The hemp industry was bolstered by explosive growth in the hemp-derived CBD category that grew from a market category that did not exist five years ago to $190mm in sales in 2017. The U.S. hemp industry is poised to reach a$1 billion dollarmarket in 2018 led by hemp-derived CBD, food, personal care and industrial products.
As legal and regulatory barriers are removed and consumer education spreads, TheHemp Business Journalestimates that the CBD market will grow to a $2.1 billion market in consumer sales by 2020.
As the CBD market consolidates, wholesale retailers are expected to provide exponential growth and, according to a new Brightfield Group report, it may grow 40 times this size—to $22 billion by 2022.
Tinctures are driving the hemp CBD marketplace, but topicals and capsules are gaining footholds—reflecting broader social trends toward wellness products and anti-pharma attitudes, according to Brightfield.
Lex Pelger, science director at Bluebird Botanicals, said in an interview with Cannabis Dispensary:
“On one hand, yes, it’s really surprising to see this young industry be at such huge numbers so quickly—and still kind of pulling itself together—and on the other side, I don’t think it’s a surprise at all, because it’s about time,” he said. “With such a long human history of cannabis being an important plant, it makes sense that this is just exploding back onto the public consciousness like it does every couple decades.”
The increasing demand for Cannabidiol (CBD) and Hemp based products is expected to push both markets into new territories in terms of sales value in the next coming years. According to a report published by New Frontier Data, the U.S. CBD industry grew by nearly 40% in 2017, reaching USD $367 Million in sales across hemp-derived and marijuana-derived markets. The U.S. CBD market is primed for expansive growth across its three primary sectors, hemp-derived CBD, marijuana-derived CBD and pharmaceutical CBD. Cannabidiol is one of more than 100 compounds found in cannabis. The chemical doesn’t make consumers high, but international demand for CBD is growing as word spreads about its potential medical benefits, including claims that CBD can ease seizures, calm anxiety and reduce inflammation.
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