The Growing CBD Industry in the US and Why Thousands Are Flocking To It
According to recent findings by Cowen & CO, more than 7% of the American citizens are using CBD.
Touted for its many health benefits, CBD, short for Cannabidiol is one of the 100+ chemical compounds (cannabinoids) found in the marijuana plant.
Due to its highly advertised medical benefits and the fact that it is not psychoactive, CBD products have become very popular in people who want to enjoy the super-healing properties of the marijuana plant without experiencing mind-altering effects associated with the plant.
The quickly rising demand for CBD products means that the current available CBD firms may not be able to meet all the needs of consumers and most entrepreneurs in the US and across the globe are seeing this as an opportunity to get into this highly competitive, yet very promising industry.
According to an analysis by Grand View Research. Inc., the global industrial hemp market may be more than 10.6 billion dollars by 2025.
The same has been echoed by Cowen & Co, who in their survey involving about 2500 adult participants found out that about 6.9% of the respondents use Cannabidiol as a food supplement.
Based on these findings, CBD use is projected to grow to 25 million consumers or 10% of the US adults by 2025. This implies a $16 billion market opportunity. Although the projections by these two firms are slightly different, it is clear that the CBD industry is destined for greatness.
In 2017, the hemp industry alone produced more than $820 million in revenues. In 2018, the revenues grew to over 1 billion dollars. This is according to the Hemp Business Journal. The industry is expected to grow at a compound rate of 14 percent through to 2022. Most people and entrepreneurs have noticed this trend, and that is why thousands of investors are flocking to the industry.
The Passing of the 2018 Hemp Bill
One of the reasons why CBD industry has become so popular is the signing of the 2018 hemp bill into law by President Donald Trump.
The hemp bill signed late last year fully legalizes not only the production of industrial hemp products but also their transfer across state lines.
It is important to note that, before the passing of the 2018 hemp bill, CBD was still recognized as a controlled substance by the FDA. With the passing of the bill, farmers can now enjoy favorable legislative measures such as expanded farm subsidies, permanent funding for farmers markets among others.
By re-writing the definition of marijuana, the bill removes hemp-derived Cannabidiol from the DEA’s list of controlled substances.
With the passage of this bill, people can now trade in hemp-derived CBD products without fear of arrests, fines or prosecution. Besides, the passage of this bill also means more demand for CBD products since consumers can now freely buy and use CBD products from licensed CBD stalls and dispensaries.
Other Job Opportunities in the CBD Sector
Apart from the trading aspect of it, people are also getting into the CBD industry as trimmers, cultivation site workers, delivery drivers, dispensary managers, budtenders, clients strategist and even as content writers!
Although it may not be possible to predict how this industry will be 10 or 20 years from now, it is clear that as legalization and popularity of CBD products continue to gain momentum, more and more people will be banking in this sector.