CBD Sector of Legal Cannabis Industry Could See 700% Growth
Most Americans are aware of the recent growth in the cannabis movement and changing legal landscapes that are allowing Americans to use the plant both for medical and recreational purposes. As the movement grows, it is important to become informed not just on the plant’s economic potential, but also on the components that differentiate medical cannabis from recreational strains.
Cannabidiol (CDB), for example, is derived from industrial hemp plants or marijuana plants and doesn’t produce the “high” typically associated with cannabis; it is typically used for medical purposes. THC, on the other hand, produces a “high” effect and is therefore found in much higher concentrations in recreational strains.
The CBD market in particular is expected to grow exponentially, according to The Hemp Business Journal, is the coming years. By 2020, the publication predicts, consumer sales of CBD will garner $2.1 billion, including $450 million from hemp-based sources. The same CBD market produced close to $202 million last year; if the market’s growth hits expected targets, it will see an unprecedented 700 percent increase.
Matt Karnes, an economic expert from Greenwave Advisors, would call the journal’s optimism understated. “In terms of the CBD market size, I estimate an almost $3 billion market by 2021,” he said. “Right now there are 15 states that allow CBD only – this is in addition to the 28 states plus D.C. that have legalized medical marijuana.”
In addition to a surge of medical marijuana users to the CBD market, sources already working within the legal marijuana industry report that traditional, non-medical marijuana users are interested in trying and learning more about CBD oil. This interest could poise the market for even greater growth.
For the market to grow by such incredible measures, however, changes may need to be made to the way CBD products are labeled and marketed. Currently, there are over 800 products in the CBD market, but because of intentionally unclear labels, it can be difficult for consumers to know what the products contain and how they may benefit from using a product.
The lack in specificity is due, in part, to the lack in clarity in the federal government’s regulating role. Though technically CBD is not defined under the Controlled Substances Act, the Drug Enforcement Agency (DEA) still considers CBD a Schedule 1 drug.
Under current conditions, with huge growth on the horizon, despite regulatory confusion, CBD and medical marijuana companies, like Medical Marijuana Inc. and General Hemp, urge consumers to educate themselves on CBD products, where they come from, and how they are derived. Research is important, but experts also remind that using CBD for medical healing is also a trial and error process; patients will never know what works best for them, without trying a few products first. For more information regarding legal cannabis growth, [Click Here].