The CBD Market Snapshot [Growth, Analysis & Size]
To say that CBD market growth is ‘promising’ would be a gross understatement. It is arguably one of the most exciting markets in the world at present because its potential for growth is enormous. Cannabidiol is one of the 100+ identified compounds in the cannabis plant and is known for not producing the intoxicating ‘high’ associated with THC.
This is one of the main reasons why CBD market size is set to soar in the next year. By the end of 2018, in fact, Canada will have joined Uruguay in legalizing marijuana for recreational use and multiple American states (including California and Colorado) have already made weed legal. However, it is still only legal in nine states plus D.C for recreational use, and 20 other states for medicinal purposes.
Also, there are relatively few countries around the world that allow marijuana to be consumed for any reason. Meanwhile, there is an increasing body of medical research which supports the use of CBD for a variety of ailments including anxiety disorders, chronic pain, and neurodegenerative conditions. As a consequence, CBD market size has grown at an incredible rate in the last few years. However, financial and CBD industry experts believe it is only the beginning.
CBD Market Analysis 2015 – Present
As one of the many useful compounds in the marijuana plant, CBD has been used to treat ailments for millennia. However, the individual compounds in cannabis remained unidentified until Dr. Raphael Mechoulam revealed the structure of THC and CBD in the early 1960s.
By the 1980s, medical researchers began discovering the positive impact of CBD on pain along with the endocannabinoid system (ECS), which was identified in 1988. In 1998, GW Pharmaceuticals was licensed to grow weed and create a synthetic drug featuring CBD, and in 2006, a medical facility called Harborside Health was created to isolate CBD. Three years later, the marijuana dispensary worked with Steep Hill Labs and found marijuana strains with high levels of CBD.
In spite of these huge achievements, the CBD market size remained small until 2015 when the total market was exceeded $202 million in worth. This figure was comprised of $112 million worth of weed-derived CBD products, and $90 million worth of hemp-derived CBD products. According to Brightfield Group, sales of hemp-derived CBD products almost doubled to $170 million in 2016. There are no accurate CBD market analysis figures available for 2017 yet, but experts have already suggested that it will become a billion-dollar market by 2020 or 2021.