Here’s how the U.S. CBD market is evolving and why it pays to invest in it
The CBD industry has attracted enormous investment in recent years and has provided huge profit margins.
What are the reasons for the success of this substance? And will it remain profitable in the years to come?
In this article, we will try to answer these questions.
CBD market: what is the current situation?
The liberalization of marijuana for medical (and sometimes recreational) use in American states has allowed the development of a thriving cannabis industry in the United States. Since the 2000s, this sector has experienced steady growth year after year to the point where it is currently worth about $20 billion.
Within it, there is one category in particular that promises to take the lion’s share of the cannabis sector: CBD.
It is currently worth $4 billion (8 times the value it was just 6 years ago) and estimates for the next few years speak of staggering numbers!
The CBD market is expected to grow at a rate of more than 30% per year, and estimates for 2024 range between 13 and 10 billion dollars. This is mind-blowing growth when you consider that it is taking place during the Covid-19 epidemic that has disrupted the world economy.
Truth be told, this sector was also affected to some extent by the pandemic, but it managed to hold its own thanks to online sales. Suffice it to say that in 2019 annual growth was estimated at more than 100%, which gives a good idea of the potential of this market.
But what is the reason for the huge success of this product?
Read also: CBD in America: is it legal?
Here are the reasons behind the success of CBD
CBD (cannabidiol) is a molecule contained in both marijuana and hemp that has no psychoactive effects, which is why its use is tolerated even in states where it is not legal. Several scientific researches also claim that this substance possesses numerous therapeutic properties.
These are the main characteristics that have made CBD so popular. The fact that it is a medically usable molecule also means that consumers are willing to buy it regardless of the price, as they would for any other medicine, which makes it possible for sellers to have high profit margins.
It is found commercially in the form of several products, such as:
- Oils and tinctures;
- Vaporizer liquids;
- Creams and lotions;
Care must be taken when choosing quality products, as the CBD market is not currently regulated by the FDA. Therefore, it is best to avoid unreputable retailers and rely only on the best companies in the industry.
CBD: are there any risks?
When we talk about risks with respect to CBD we usually mean legal risks and health risks.
Let’s start with the legal ones first.
At the federal level, there is no law governing the legal status of CBD. When discussing this topic, people sometimes tend to cite the 2018 Farm Bill, which allows for the cultivation of industrial hemp with a THC content of no more than 0.3%.
Despite what people may say, this bill says nothing about CBD, and the issue is left entirely up to the individual states.
This is where things get complicated, because every state in the US has its own rules on CBD, which can even change from county to county. However, as a rule, if you comply with the THC limit of 0.3% you are not at any particular risk, as anti-CBD laws are rarely enforced.
As far as health risks are concerned, CBD has no particular contraindications and can be taken safely by a healthy person. Some minor side effects are sometimes possible such as:
- Dry mouth;
However it is necessary to be careful when it is taken in concomitance with medicines or other drugs. In these cases it is always advisable to ask for medical advice.
We outlined what the current state of the U.S. CBD market is and how it may evolve in the future.
Cannabidiol is a useful substance in so many fields, including the medical field.
That’s why the demand for CBD-based products remains very high even during the pandemic, and those who invest in this sector can expect excellent returns.