After the 2018 Farm Bill and hemp legalization, the demand for CBD products skyrocketed in the United States. The sporadic growth of the CBD industry following the passage of the Bill tells us that this is only the beginning. In just a few years, the CBD sector became one of the fastest-growing sectors in the health and wellness industries.
This growth is accompanied by challenges and questions, many of which revolve around the future of the CBD industry. How to distinguish what is legal or not, safety and effectiveness of CBD are all major concerns.
Today, CBD is booming in over thirty countries. Because of that, it’s projected that the CBD industry will get to $22 billion in 2022 and beyond. These projections stem from the industry’s growth over the past few years. We’ve watched people get educated about CBD and actively make it a part of their wellness regimen. But, what does the future hold for this industry?
CBD Sector Will Get Bigger
Here’s one thing we’re sure about: the CBD industry has become a big business, and it will only get bigger. With more states legalizing CBD, the prognostication about the industry hitting over $20 billion makes sense. More people are becoming aware of the health benefits CBD can offer.
From CBD oil tinctures to topical products, there’s an incredibly high amount of brands and products gracing the market. People are flocking to different outlets and placing orders online to try these products.
With many new products available to consumers, it can be tough to know what is safe and effective. The great news is we have many reputable brands in the industry creating high-quality CBD. However, there’s much work to be done in educating users.
CBD is legal at a federal level in the United States. Other parts of the world, including Canada, Australia, and Europe, have legalized CBD. However, certain regulations exist on the cultivation and sales of these products. For instance, the CBD must be hemp-derived and contain little THC. As more people become aware of the therapeutic benefits of CBD, there’ll be even more growth.
Active Legalization Movement
We expect to see activists make movements for the legalization of CBD. Although CBD is legal in many countries, there are still some challenges in regulations. For instance, Health Canada has several policies that must be met before a hemp plant is considered legal. While these regulations are essential, some can make things difficult for the growers.
In the coming years, we’ll see more states legalize CBD. Not just that, but there’ll also be less strict regulations surrounding production and usage.
Increased Awareness and Quality Assurance
Researchers are continually studying CBD and its potential benefits. With more research results on the way, the public will be open to trying out this compound. Also, there’ll be increased awareness of its health benefits.
All these will result in more companies entering the CBD industry. If you’ve ever bought CBD products from an online store, you know the confusion of selecting a trusted brand. Most times, you have no idea which of the products would be the best for your needs.
One of the major surges we’ll see in the industry will be in the area of quality assurance and the education of consumers. This awareness will help users know what to look for when shopping. Also, they’ll be able to differentiate a substandard CBD product from a quality one.
New Opportunities for Businesses and Customers
We’ll likely continue to see the popularity of CBD skyrocket. With all the new products coming up in the market, lots of people would want to try them out. Also, as the knowledge of the health benefits of CBD amplifies, more people will switch to it as an alternative treatment option.
Once legalization takes place in different places, it will open new opportunities for both the producers and the consumers. One area that will be interesting to watch is the financial system.
Currently, cannabis-related businesses in America can’t bank with most US banking institutions and credit card networks. As a result, these companies find it hard to apply for loans to boost their businesses. We’re excited to see what happens in the next few years, even in the banking system, to help the CBD industry thrive.