Since the 2018 Farm Bill legalized the growing and sale of hemp and its different extracts, cannabidiol (CBD) has become immensely popular. Extracted from industrial hemp, a variety of cannabis that is not psychoactive, CBD is part of a group of compounds called cannabinoids that have diverse medicinal properties. Although research into CBD’s medical abilities is still ongoing, plenty of users claim the hemp extract successfully alleviates a variety of conditions, including insomnia, chronic pain and anxiety, among others.
Experts have said that the hype for CBD has far outpaced the science, and the FDA has been cracking down on firms that make outlandish claims about their CBD products’ medical abilities. Still the CBD industry is poised to enjoy exponential growth over the next few years, reaching an estimated valuation of $9.69 billion by 2025. So what can we expect for the future of CBD products?
Product Innovation. Despite being only a few years old, the CBD industry has become known for innovation and variety. CBD itself has a wide variety of uses, and it can be packaged and delivered to users in many forms. You can smoke cannabis flower (which may not be that good for your lungs or general health), you could opt for either CBD extract (only contains CBD) or full-spectrum CBD (contains the entire terpene, flavonoid and cannabinoid profile, except THC). As time passes and more funds are invested in the industry, you can expect to see an even greater variety of products.
Increased Consumer Demand. Word about CBD’s abilities is spreading. Plenty of folks are tired of prescription drugs and their side effects, and CBD may offer a safe, natural alternative to many health challenges. As we’ve said, the hemp extract has a wide variety of applications, from relieving pain and reducing anxiety and depression to preventing seizures. This allows a large piece of the consumer market to benefit from CBD. Additionally new research and studies proving CBD’s abilities should significantly increase demand for CBD products.
Increased Regulation. Despite its massive potential for growth, the CBD industry is currently a hot mess. Without a comprehensive regulatory structure for CBD, the industry has seen an influx of firms willing to make outlandish claims about their products. Despite not being approved by the FDA, CBD-infused drinks, foods and beverages are everywhere. CBD products such as extracts are also hard to control industry-wide in terms of potency and consistency. A federal framework for regulation will eliminate unscrupulous players and streamline products in terms of potency and consistency.
More Competition. Based on how much revenue the industry is projected to bring in, competition will be inevitable. With more players in the market, we will see the introduction of more novel products as well as lower prices. Creating a recognizable brand before the industry is saturated with sellers will help increase customer recognition and loyalty as well as enhance your credibility and give you a competitive edge.
Many cannabis companies have benefited from the boom in sales triggered by the ongoing coronavirus situation. One such company is Sugarmade Inc. (OTCQB: SGMD). Sugarmade has seen significant growth in demand for its cannabis delivery services in California.