CBD market could reach $20 billion by 2024
When CBD was first isolated for commercial use, there was no prediction for just how many industries would be touched; from cosmetics and food to pharmaceuticals and medicine. For the hundredth time, we are hearing predictions about the market value of CBD in the future. Cannabis researchers at BDS Analytics are now estimating the combined sales of CBD to reach $20 billion by 2024, an increase from Cowen & Co’s estimate of $15 billion by 2025.
BDS Analytics included in their forecast the sale of CBD in dispensaries, smoke shops, grocery stores, and pharmacies. However, they also predict that a large portion of CBD sales will take place in generalized retail stores now that CBD has been publicly accepted and virtually normalized in the USA. The forecast includes the sales of any CBD products, including isolated or distilled cannabidiol, CBD-infused beverages, and CBD-rich hemp flowers. In fact, according to BDS, CBD sales have grown at a faster rate since 2014 than overall dispensary sales. This makes CBD the fastest growing aspect of the cannabis industry as a whole.
The 2018 market value of CBD in the USA was at $1.8 billion, so BDS Analytics’ forecast is for a 49% annual growth rate in sales. This is likely due to the increase in distribution channels such as selling CBD in the grocery store, for example.
There’s no doubt that the 2018 Farm Bill has something to do with this prediction, now that virtually all stores in the USA can legally sell hemp-derived CBD products. However, BDS doesn’t mention the 2018 Farm Bill in their analysis. With BDS Analytics’ prediction that generalized stores will sell more than dispensaries, it’s likely that the Farm Bill has something to do with it.
The number one reason for people to by hemp-derived CBD in the USA is for the treatment of chronic pain, according to BDS, who closely follow dispensary CBD sales trends. BDS says that two-thirds of American hemp-derived CBD consumers agree with the full federal legalization of hemp-derived CBD, 90% of them stating that they use it for medical reasons – especially for the treatment of pain.
While tracking CBD sales in dispensaries over the years, BDS Analytics also found that CBD sales made up for a total of 11% of total dispensary sales in 2018. This is a significant increase in sales from 2017, where CBD sales only made up 5% of total dispensary sales. This trend is expected to continue, turning the entire combined THC and CBD sales into a $45 billion industry by 2024.
Since the federal legalization of hemp-derived CBD, startup companies have appeared all over the USA. There is an abundance of CBD products available in dispensaries, cosmetic stores, and pharmacies, driving bulk sales of hemp-derived products higher through targeting the huge demographic of people who are interested in CBD products. Before the 2018 Farm Bill, much of the hemp used to manufacture CBD products were imported from Europe. Now, hemp can be grown in the USA legally with a license and CBD products can be manufactured from USA grown hemp. This is another reason for the expected explosion of CBD sales.
In fact, BDS Analytics doesn’t mention anything about biosynthetically produced CBD, which is just taking off in Canada. Although this hasn’t reached the USA yet, it most certainly will. This should increase the supply for the growing demand and drive down the market price, hopefully increasing sales as a result.