If you look at the last decade and think about one word that dominated the headlines and was a hot topic, you’ll undoubtedly think about CBD. It’s a cannabis byproduct that is becoming increasingly popular as a holistic treatment remedy due to its therapeutic benefits. As many have already made CBD a part of their life, and with more evidence about its efficacy available, doctors are also promoting its use.
While the CBD industry is currently booming, do you wonder about its future? If your answer is yes, then here are some predictions about the CBD market for 2021.
What are the Predictions of the CBD Market?
CBD has now managed to become a household name. Whether for treating physical and psychological ailments or as a preventive measure, people are opening up to CBD and its many benefits.
Here are some trends for the CBD market for 2021:
1. Sales are Expected to Increase
Judging by its increase in popularity, it is safe to assume that the CBD market’s most significant trend is that its sales are going to increase. The industry has already been experiencing a boom in the last few years, with numbers soaring every passing year. If you consider the estimates by New Frontier Data, the CBD market will increase from $390 million in 2018 to $1.3 billion in 2022. Another research by BDS Analytics and Arcview suggests that CBD sales will reach more than $20 billion in 2024. While the numbers may be shocking, it’s entirely possible to take into account the limitless potential the industry offers.
2. The FDA Might Soften Their Stance Against CBD Products
The US has a regulatory authority called the Food and Drug Authority (FDA), which approves products that come into the market. According to the FDA’s recent rules, all drugs that contain CBD fall under Schedule I substances. They require prior approval from the agency before being offered to the public.
The FDA has given the green light to two CBD based drugs, Epidiolex and Sativex, and placed them in the Schedule V of Controlled Substances Act of the US Drug Enforcement Administration (DEA).
Experts believe this is welcoming news for CBD businesses. There is hope that the FDA will reassess the law and place CBD in Schedule V or maybe unschedule it all together.
3. The Product Range Can Diversify
When it comes to CBD, one aspect that fascinates users the most is its versatility. CBD comes in numerous forms and can be consumed in many different ways. You can get CBD oil, anti-anxiety CBD tincture, capsules, edibles, even topicals. While the product range is already quite vast, it is certainly expected to expand in the next few years. Brands are experimenting and also making headway with CBD- infused beverages that use nanotechnology.
Besides, many other industries are also opening up to CBD. They are using CBD as a significant component of their products and trying to benefit from the popularity of this cannabis byproduct. The markets are currently brimming with cosmetics and supplements that contain CBD. The number of products in the industry is only expanding to cater to the growing demand.
4. Increase in Investment
If you look at the best-performing stocks, you will find many CBD companies on the list. Investing in the CBD industry is a wise decision, given the ample opportunities for profits and growth. Due to this, top corporate players are also inclined to invest in the Cannabidiol market. Besides companies, even individuals are trying to profit from the boom of the market. It is expected that the market growth of CBD could exceed 55 percent per year in the next few years.
5. More States are on the Path of Legalizing CBD
A wave of legalization of cannabis and its byproducts has been increasing all over the world. The U.S. government passed the 2018 Farm Bill that made the production and sale of hemp-driven CBD legal. Many states in the US have legalized the use of the cannabinoid already. While it’s still illegal in some states, experts believe that they are on the way to legalizing CBD products.
6. The Number of Dispensaries is Set to Multiply
Owing to CBD’s continued growth and sales, there is an increasing trend of opening new dispensaries. A dispensary is an authorized retail storefront that sells cannabis-based products to consumers. Despite strict rules and regulations, the numbers of dispensaries are increasing at a high rate and will continue to grow. People are applying for licenses to open dispensaries in new regions and on larger scales to meet demand. One such example is Cannabis Ontario dispensary which is also a well reputed licensed dispensary for cannabis-based products.