CBD Industry Expected To Reach Highs Of $ 2 Billion By 2022
Last year, the CBD industry spiked by 40% translating to a total of $ 367 million in overall sales nationwide. It also marked the first time in history that hemp-derived CBD eclipsed cannabis-derived CBD. According to the report, New Frontier anticipates seeing “continued changes as the pharmaceutical sector officially opens in 2018.” The $ 2 million estimates are a result of the expected $ 646 million coming from the hemp-derived CBD industry while $ 647 million comes from the cannabis-derived CBD industry.
New Frontier Data’s report also states that more than 25,000 acres of land were used for hemp cultivation in 2017; a crop that was produced in 19 states with 70% of it being devoted entirely to CBD.
“The US CBD market is primed for expansive growth across its three primary sectors, hemp-derived CBD, marijuana-derived CBD, and pharmaceutical CBD…. We project that by 2022, each of these three sectors will account for approximately one-third of the $ 1.9 billion total market,” says Giadha Aguirre de Carcer, New Frontier Data’s CEO.
The report also says that once Epidiolex begins sales by late this year or early next in the pharmaceutical channel, it will make up around 1/3 of the CBD market come 2022 with sales expected to surpass $ 625 million.
Legal Gray Area, Lack of Regulation
But until now, CBD products are in a limbo, legally speaking. This is because the two main sources of CBD, cannabis and hemp plants, aren’t both legal yet, at least in the eyes of the federal government. To make matters more complicated, hemp-derived CBD is exempt from the Controlled Substances Act’s definition of cannabis, while CBD is legal in some 15 states and cannabis-derived CBD is legal in 30 states.
However, no matter where the CBD comes from, there is one major issue plaguing the CBD industry and that’s the absence of regulation. This is why all the products on the market face a massive variation when it comes to safety, purity, content, and price.
In a 2017 report published in the Journal of the American Medical Association, researchers analyzed 84 CBD product samples purchased from 31 retailers. They found that around 7 in 10 products contained differing levels of CBD than what the manufacturers claimed on the label. Out of all the products that were tested, around half had more CBD than was indicated while a quarter of them had lad less. What is concerning is that 18 of the 31 samples were found to contain THC after being laboratory tested, even if its labels didn’t specify so.
But the 2014 Farm Bill, which is a set of federal regulations concerned with agriculture and food in the US, which also oversees hemp cultivation, “industrial hemp” refers to cannabis-derived products and plans that contain less than 0.3% THC. It also has to be grown by a farmer licensed by your state, but the bill says nothing about CBD and the hemp industry is responsible for creating so many of the CBD products that are so easily accessible these days.
So what does this mean for the consumer who wants to purchase CBD products that are legal? Basically, if you’re consuming anything made from hemp which has been grown by a state-licensed farmer containing less than 0.3% THC, there’s nothing to worry about. This means you’ll have to ask your suppliers a bunch of questions, but either way, it’s also good to know that busting people for CBD products isn’t a high priority according to law enforcement officers.
The Therapeutic Effects of CBD
Cannabidiol is one of the two main cannabinoids in the cannabis plant; the other being tetrahydrocannabinol (THC), the compound that gets you high. Studies have shown that CBD possesses a wide array of potent therapeutic benefits for conditions such as epilepsy, anxiety, cancer, and more. CBD is also widely used for well-being and health, and because of the absence of a “high”, it’s safe to use for all ages. CBD products can be derived from either cannabis or industrial hemp plants.
CBD is well on its way to becoming a household name in various therapeutic products, even beauty products. It’s becoming increasingly used as an ingredient in healing balms, oils, salves, as well as beverages and edibles.