CBD products have become incredibly popular thanks to new legislation legalizing hemp-derived products with minimal THC content. The popularity of CBD is also attributable to the number of people experiencing benefits from it; CBD is being used to alleviate anxiety, help people sleep, and give people a deeper sense of wellness and relaxation.
But what does the future hold for this industry? Is CBD just a fad, or will it continue growing in popularity? And how will innovators direct the development of this market?
Product Innovation
First, let’s take a look at the area of product innovation. Already, there is a wide range of different CBD products available for consumers to try. You can buy and smoke CBD flower, just as you can buy and smoke weed, but most people prefer a different delivery system due to concerns about smoke and lung health.
Instead, many people are turning to full spectrum CBD oil, an extract designed to provide you with a full spectrum of different cannabinoids (except THC, of course), in a much cleaner, more efficient delivery system. We’re also seeing the development and circulation of topical forms of CBD, including creams, and CBD cartridges for vaporizers.
In the future, we’ll likely see an even wider range of products that contain CBD. Already, we’re seeing hints of what’s to come. For example, there are gummies and other edibles that contain CBD being sold by food manufacturers. There are also some restaurants offering signature dishes cooked with CBD oil. Over time, as extracts become more concentrated and new forms of CBD delivery become discovered, we’ll see an even more diverse range of options for consumers.
Consumer Demand
Consumer demand for CBD is unlikely to let up anytime soon. After becoming legalized, there was an understandable surge in demand due to the novelty of the substance. Some experts suggested that this would be short-lived; once people got over the newness of the substance, they would move onto something else.
But the numbers suggest something different. The market for CBD in 2020 is $967.2 million, but it’s projected to grow to $5.3 billion by 2025. There are many reasons why this growth trend will likely continue.
RELATED: Are There Any States That Restrict CBD Products?
For starters, people who try CBD and like it tend to keep buying it. They discover the benefits, and don’t want to lose them. It’s not a fad for them; it’s a source of relief. Additionally, the benefits of CBD are still being discovered; new studies are constantly emerging to suggest new benefits from the substance, or to reinforce already existing ideas about how it works.
Consumer acceptance is also likely to grow. While some people were excited to try something new when it became legalized, CBD still carries a stigma among some circles, due to its association with marijuana, which is still illegal at the federal level. In time, negative perceptions will likely decline, and more people will be willing to try this substance for their own personal benefit.
Regulation
While the 2018 Farm Bill allowed hemp-derived products to be sold legally, this isn’t the end of the line in terms of regulation. In the future, the FDA and other governmental bodies may step in to more heavily regulate the manufacture, advertisement, and sale of CBD products. This is an area of much uncertainty since it’s unclear how or when the government may intervene.
RELATED: How To Find High-Quality CBD Oil
Right now, there are minimal regulations for how hemp is grown and tracked. Companies are making bold claims about the health benefits of CBD, despite much of the research being new and limited in capacity. And some products, such as extracts, are hard to control in terms of potency and consistency. Increased regulation could make it more difficult for new companies to enter the space, and could cause headaches for companies that are trying to innovate and serve more consumers.
Increased Competition
No matter what, we’re likely going to see more competition in the CBD space. The CBD market has already proven itself to be a lucrative one, and it’s only going to grow in the future. Thousands of businesses are competing to become a top name in the CBD world, and entrepreneurs are coming up with new ways to help themselves stand out from the crowd.
This will have a cascade of different effects on the market. It will introduce more novel products. It will lower prices for consumers. It will bring more attention to the industry. And it will make it harder to be a business owner in the space.
The future of CBD products is somewhat uncertain, given the potential for further regulation. However, the CBD market is consistently growing, and will likely continue to grow for the foreseeable future. New CBD products will inevitably follow that demand.
This article originally appeared on Green Market Report and has been reposted with permission.