- The CBD Market Trends are exploding! In drinks, cosmetics, nutraceuticals, gummies, drops, oils, and more–it’s one of the most highly demanded products in the US–and still growing!
- Globally, CBD markets and sellers are popping up at an unprecedented rate in Canada and Europe.
- The CBD market worth in Canada alone was over $3 billion in 2020–considering various products ranging from prerolls, oils, edibles, brinks, and vapes.
- The latest one, by leading cannabis researchers BDS Analytics and Arcview Market Research, projects that the collective market for CBD sales in the U.S. will surpass $20 billion by 2024.
CBD Market Size
The market size is ever growing around the world. Target audiences are expanding, user base is growing, demographics are increasing. This is no longer a niche audience crammed into a dark corner anymore–this is a federally regulated, open world market.
According to reports by SingleCare, Gallup exit polls, and Consumer Reports, as of 2020 33% of American adults have used CBD once or more. 64% of Americans are familiar with CBD and/or CBD products, and an estimated 64 million Americans have tried CBD in the last 24 months.
For reference, in 2008/2009 Hoban Law Group represented all six CBD distribution companies based out of San Diego, and Denver.
CBD is an incredibly rapid growing industry, with no rhyme or reason to stop now. As a matter of fact–of those who use CBD, 22% said it helped them supplement or replace prescription or over-the-counter drugs. Of course that’s not a medical diagnosis–but it’s a good read on where this industry came from, and where it’s going.
Who Is The Target Market For CBD?
Most companies that have seen any form of relative growth in the past few years either market to the 1% or they skew relatively young. Boomers are saving their money in retirement, Gen X and Xillenials are paying off houses and getting ready to retire, but Millennials and GenZ seem to hold the buying power in today’s market.
At just over 40% of the entire US population, GenZ and Millennials only hold a whopping 4% of the nation’s wealth (2% of which is Mark Zucherburg, and 1% is diversified amongst young pop star icons)–but that doesn’t seem to slow their buying trends.
Americans age 18-29 use CBD most consistently, and the popularity then decreases with age (Gallup, 2019):
- 20% are ages 18-29
- 16% are ages 30-49
- 11% are ages 50-64
- 8% are age 65 and older
CBD Marketing for the most part positions the product as a relaxant/antidepressant–a culture and diagnosis most of GenZ and Millennials can get on board with. Their increasingly liberal views aren’t as repugnant about alternatives to traditional western medicine as their predecessors. Not to mention they’re the bloodlife of the American Workforce and the up-and-coming stars of corporate america.
So how much does CBD make a year? Globally–somewhere from $9-16 Billion. In the US, it seems to be almost every last penny GenZ and Millennials have. Not really, but a solid $4 Billion in 2019 is nothing to gawk at.
The wealth may belong to the 1%, but it seems the buying power lies with these two powerhouses.
Why Is The CBD Industry Growing?
On top of singling out their strongest market share, CBD is one of the most diversified products on the market today.
Name a product you use today, and chances are a CBD variant exists; lotions, balms, tinctures, wipes, tablets, caplets, capsules, cosmetics, vapes, patches, candles, soaps, socks, sprays, and soda’s–the list is seemingly endless.
According to a survey listed by SingleCare in 2020, nearly half of CBD users prefer oils/tinctures and lotions/balms. But there’s a spiking growth for edibles/gummies as well.
- 18% are interested in capsules/tablets
- 18% are interested in topical sprays
- 17% are interested in food products (chocolates, brownies, cookies, etc.)
- 13% are interested in vaping products
- 12% are interested in soap
- 11% are interested in non-alcoholic CBD-infused drinks
- 9% are interested in bath bombs and salts
- 8% are interested in skincare products
- 8% are interested in patches
- 1% are interested in other CBD related products
How Big Will The CBD Market Be?
1. Sales are expected to increase
The first legal representations for the CBD Market were in 2008 & 2009 with 6 companies. In 2018 the “Farm Bill” was passed, legalizing CBD growth (the hemp plant). Shortly after, in 2019, CBD was federally regulated and could be sold in all 50 states.
Respectively, 2019 generated $4 Billion in revenue, 2020 brought in $4.7, and the demand is expected to hit $16 Billion by 2025. Keep in mind, these are US numbers only–CBD is still in high demand all over the world.
These numbers don’t include the cosmetics industry, the nutraceuticals industry, health & wellness, or self-care products–all of which are incorporating CBD into their product portfolio at an astonishing rate.
2. The FDA Continues To Soften Regulation
The Food and Drug Authority (FDA) is responsible for the approval of products that come into the market. According to the FDA’s recent rules, all drugs that contain CBD fall under Schedule I (no accepted medical standard and high potential for abuse) substances. They require prior approval from the agency before being offered to the public.
Including their federal approval as a scheduled substance, the FDA has also given the green light to two CBD based drugs, Epidiolex and Sativex and placed them in the hands of the US Drug Enforcement Administration (DEA). Meaning, not only is CBD legal in 50 States, but it’s also being studied and implemented medicinally into US Healthcare.
That’s incredibly promising news for CBD. Experts hope that the FDA will continue to reassess laws and place CBD in Schedule V or maybe unschedule it all together.
DEA Drug Scheduling
Schedule I (1) – heroin, lysergic acid diethylamide (LSD), marijuana (cannabis), 3,4-methylenedioxymethamphetamine (ecstasy), methaqualone, and peyote
Schedule II (2) – hydrocodone per dosage unit (Vicodin), cocaine, methamphetamine, methadone, hydromorphone (Dilaudid), meperidine (Demerol), oxycodone (OxyContin), fentanyl, Dexedrine, Adderall, and Ritalin
Schedule III (3) – Tylenol with codeine, ketamine, anabolic steroids, testosterone
Schedule IV (4) – Xanax, Soma, Darvon, Darvocet, Valium, Ativan, Talwin, Ambien, Tramadol
Schedule V (5) – cough preparations with less than 200 milligrams of codeine or per 100 milliliters (Robitussin AC), Lomotil, Motofen, Lyrica, Parepectolin
3. Product Range Continues To Diversify
CBD is wildly popular for its numerous forms and applications. Tinctures, edibles, topicals, capsules, etc. are just some of the few ways that people use CBD to help their everyday lives.
Newest to the industry are Oral Strips, which circumnavigate the digestive tract and dissolve directly into the bloodstream. Allowing for much quick absorption and results.
Again, the CBD industry continues to branch out into cosmetics, nutraceuticals, health & wellness, self-care, and even fitness.
CBD is as broad as it is in demand, and both are trending up
4. CBD Companies By Market Share
CNN Business answered in their 4/20 review “…how fast is the CBD Industry growing?” Outlook: awesome. Really, really awesome.
“Smoking” hot stocks (CNN’s words) are alluring to investors on all levels. Which makes sense–industry growth leads to stability, leads to greater market share, leads to more growth. Investing in the CBD industry at this point is beyond a wise decision–pick a company, any company, and you’re smokin’ stocks are gonna soar.
Even hedge funders, and top corporate gamers are getting in on the action. The lowest surge in the CBD stock market this year was a recorded 10%. CBD market research suggests that growth could exceed 55 percent per year in the next few years.
Aphria (APHA) and Tilray (TLRY) recently merged in a deal that valued them at $4 billion in December–creating the world’s largest cannabis company–and in 2020 alone more than doubled both of their stock growth values.
It doesn’t stop there. Canopy also announced their intent to buy Supreme Cannabis (SPRWF)–their direct competition–for $350 million. The market for CBD truly is only in its infancy, and through its teenage years, only those that don’t invest are going to feel the growing pains through these coming growth spurts.
4. CBD Market Growth
“Come With Me, And You’ll Be, In A World Filled With CBDispens’ries!” A lyrical stretch, but true nonetheless. This kind of market growth must be met with more supply. Currently demand outweighs opportunity, and the market has to respond one way or another.
While online sales and delivery services have bumped up almost 50% during COVID, foot traffic saw almost no dent. From CBD dispensaries to gas stations selling gummies, physical in-store purchases saw next to no dip during the COVID-19 pandemic–which is a promising glimpse in and of itself for the industry.
Despite strict rules, varying regulations, and unclear stances across multiple states, the number of dispensaries is still increasing at a breakneck speed. And if stock trends, market analysis, and revenue growth are any indication of how dispensaries will respond, it’s only going to continue to grow.
People are applying for licenses to open dispensaries in new regions and on larger scales to meet demand. They’re buying product wholesale, white labeling their products, and turning around to meet demand–it’s truly a sellers paradise at this point.
And that dream isn’t going away anytime soon.
Get in on a booming market. Sell You CBD Product Today!