Market Boom: How Much Is The CBD Market Really Worth?
In recent years, many people have started taking CBD, and the market has grown more than many expected. Can you continue to grow as new products appear? How valuable is the CBD sector? We talk about these topics and tell you about the innovative range of products available in stores.
Analysis Of The Growth Of The CBD Market.
In 2018, the global CBD market was worth an estimated $ 4.6 billion. In 2020, that number was expected to double. This extraordinary upward trend has shown to businesses, recreational customers, and holistic consumers alike that cannabidiol (CBD) is much more than just a passing fad. In turn, big brands and small companies have invested more time, energy, and effort in their range of CBD products.
To date, 33% of Americans have used CBD, while Europe and the UK are not far behind. The rapid growth of the CBD market indicates no signs of stopping; On the contrary, he is now stronger than ever.
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Why Is CBD So Popular?
In 2019, CBD was more Googled than Beyoncé or Kim Kardashian. But why exactly is it so popular?
In Europe, cannabis plants are usually regulated as long as they contain a known amount of THC. This allows emerging companies to have broad access to plant raw material.
Regarding the entry of CBD into the United States, the Agriculture Act of 2018 regulates hemp factories in all 50 states.
Thanks to this legislation, there has been a huge increase in legal CBD products, all of which are in huge demand. Some big-name sellers, like Walgreens in the US or Holland & Barrett in the UK, jumped on the bandwagon and now produce their CBD products.
From a consumer point of view, CBD has many benefits. On the other hand, to be more available than ever, the World Health Organization has found CBD to be well tolerated by the body and has no potential for abuse. This allows consumers to enjoy this calming and non-psychotropic cannabinoid with complete peace of mind whenever they deem it appropriate.
Furthermore, the wide variety of CBD products on the market means something suitable for everyone: CBD oils to topical products and cannabidiol-rich cannabis flowers.
Who Uses CBD Products?
In recent years, most people of all ages are using CBD products.
The most talked-about use of CBD is millennials and other young people. However, we can only really measure the discussion on social media. Many people aged 40 to 50 and over also use CBD; However, they tend not to voice their opinions on Twitter, so we don’t know exactly how many people tested it.
As these results and information about CBD spread, more people of all ages will be using and talking about this cannabinoid. Even pets can benefit from CBD, which increases the popularity of some pet products.
Where Are CBD Products Bought?
In the United States, before the Agricultural Products Act was passed, most people bought CBD products online. But nowadays you can find them in almost any store or grocery store.
With large retailers accounting for 57% of sales, and online merchants accounting for 22%, sourcing CBD products is easier than ever.
These products can also be purchased in health food stores, dispensaries, smokers stores, and even in pet stores (for dogs and cats, obviously). Probably the most trusted sellers are those with proven experience in the CBD industry, and/or those who apply rigorous quality control measures from seed to package.
The Best-Selling CBD Products
Thanks to the advancement of technology, today, we can enjoy cannabidiol in many different ways beyond the hemp buds from which this compound is extracted. There are numbers of products on the market to choose from, from oils and tinctures to CBD edibles. You can even buy CBD juices, sodas, and beer!
A brief look at the main categories.
Sublingual CBD products include concentrates, tinctures, and sprays. When applied under the tongue, they have higher bioavailability than ingestion, which means that the body absorbs more CBD into the bloodstream.
Previously, the sublingual application was the main method of using CBD. Although it is certainly still a popular method now, the growing diversity of products has caused consumers to spread their attention to all of them. Still, there are loads of great sublingual products on the market.
Oral ingestion is fast becoming the most common consumption method. There are many capsules and edibles on the market that allow cannabidiol to be ingested orally. Capsules sometimes include compounds to increase the bioavailability of CBD, while edibles achieve this goal naturally.
When a cannabinoid like CBD enters our digestive system with fat molecules, it binds to them and is better absorbed by the body. As a result, a dose in the edible form will be more effective than taking the same dose “alone” (without additional fats or compounds).
Edibles are not the CBD product that offers the highest bioavailability, but they provide an effective and long-lasting high. In addition, the fact that there is such a wide, delicious and practical selection of products makes it easy to sell.
Even Willie Nelson has a range of CBD coffee beans.
Like THC, CBD can be vaporized, smoked, or dabbed. Smoking and dabbing are two classic ways of consuming cannabis products, so you will always find hemp wax and flowers.
And since vaping has also become quite popular, you will find a growing number of CBD vaping products. Vaporizers offer high bioavailability, effectiveness, and fast-appearing effects; Plus, you probably have room in your pocket or bag to carry a vaporizer.
That said, inhalation carries the same risks as conventional smoking or vaping. Therefore, more and more people are looking for other methods of consumption.
Products for topical use range from balms, patches, and lotions to creams and cosmetics. They are generally designed to relieve skin problems, such as redness and sensitive skin.
Topical CBD products can exert their effects thanks to the cannabinoid receptors found in our skin. With this method of consumption, CBD cannot enter the bloodstream, but it can produce a localized effect in the area where it is applied.
As a result of the wide variety of potential applications, we will likely see more topical products in the coming years.
What Is The Value Of The CBD Market?
Given the rapid expansion and global nature of this sector, it is difficult to accurately measure the value of the CBD market at any given time. That said, Grandview Research has predicted that the market for CBD consumption will be worth $ 9.42 billion in 2020. We could look at certain countries or smaller, specialized CBD markets for more concrete data, but even these data are dynamic and difficult to pin down.
Taking the UK as an example, CBD spending increased in the first half of 2020, leading experts to project annual revenue of £ 450 million, representing a 50% increase over 2019. This increase is believed to have been catalyzed by COVID-19, showing how quickly spending projections can change.
Despite this huge increase, Germany is expected to overtake the UK in CBD sales in 2023. Other European countries, such as Switzerland, have jumped on the bandwagon with enthusiasm and are expected to see impressive growth.
In the United States, the already established CBD sector grew by 14% from 2019 to 2020, and steady, albeit not huge, growth is expected shortly.
Great Contributions To The Market
Given the incredible versatility of CBD, some companies are starting to incorporate it into all kinds of everyday products: from coffee and sparkling water, to scrubs and sunscreens. And as time goes on, CBD products will become more and more common.
One of the industries benefiting the most from the CBD boom is the skincare and cosmetics sector. We can already find facial masks, bath bombs, lotions and serums with CBD in the market, and this is just the beginning. Beauty products are extremely versatile, with plenty of room for innovation, so we will surely see a large number of products appear sporting hemp leaves on the label.
Between boosting beauty and adding quirkiness to everyday products, adding CBD to all kinds of items has become the next big marketing trend. That said, the novelty of certain products is projected to wane over time, and in fact, consumers are becoming more austere on their spending overall.
CBD Market Growth Forecast In The Next Five Years
Ultimately, it seems that the CBD market is only trending in one direction: on the upside. Investment bank Cowen & Co. has estimated that the CBD market will reach a value of $ 16 billion by 2025. Furthermore, according to Brightfield Group, the CBD beverage market is expected to have a return rate of 63% by 2023.
Although North America is a key figure, significant growth is anticipated in Europe and South America in the coming years, especially in regions with progressive hemp and cannabis legislation. Overall, the CBD market has a bright and exciting future. With more research coming to light, who knows what tomorrow will bring?