An analysis completed by The Brightfield Group has determined that the non-psychoactive, hemp-based CBD market will hit $22 billion by 2022, according to a Rolling Stone report.
The CBD market is already expected to top $591 million in 2018. While the early CBD market was often written off as businesses trying to capitalize on the cannabis hype, an uptick of states with required cannabis testing and other regulations have caused a boom in veritably potent and effective CBD products.
CBD is one of the most medicinal compounds in the cannabis plant, helping with everything from arthritis and bug bites to epilepsy and cancer.
The Brightfield Group sees the most opportunity for growth in Sen. Mitch McConnell’s 2018 Farm Bill, which includes a provision to remove hemp from cannabis’ Schedule I categorization — effectively legalizing it for farmers across the country. It would also remove the only remaining roadblock for CBD investments from major corporations, as well as provide a plentiful domestic supply of the hemp plant for use in CBD extracts. It would also allow and encourage mainstream, big-box stores to start selling CBD products.
“This industry has grown out of nowhere, based on word of mouth marketing. There’s no real mass market retailers that are covering it.” — Bethany Gomez, Director of Research for The Brightfield Group, via Rolling Stone
CBD is seen by many as a natural remedy instead of a pharmaceutical or narcotic drug, which gives the compound an additional perception of safety and medical effectiveness that traditional, THC-heavy cannabis doesn’t achieve as easily through its many decades of propaganda. This may make consumers more likely to try CBD products, especially when it starts showing up on the shelves of neighborhood groceries.
Both the House and Senate have passed the 2018 Farm Bill. The bill is currently in committee to reconcile the two versions into one bill that will go to President Trump for his signature. The current Farm Bill, established in 2014, is set to expire on September 30 — lawmakers hope to have the new version completed and passed by that deadline.