What does the future of CBD look like?
CBD is rapidly expanding its position in the wellness market. In 2020, the global market for CBD was valued at $9.3bn, with predicted growth putting it at $23.6bn by 2025. On the face of it, this suggests that the future of CBD looks exceptionally bright. In this article, we explore some market trends, with a closer look at what the future of CBD might hold.
What is CBD?
First, an introduction on CBD. CBD, or cannabidiol, is a chemical component of Cannabis sativa, L. Of all the compounds in cannabis that have been studied (including THC, CBC, CBD and CBN), it is the one that shows the most potential for therapeutic application. Positive effects include pain relief, inflammation relief, and relaxation.
CBD in Europe
The legal status of CBD in Europe is changing. Cannabis legality varies from country to country, however therapeutic use of CBD is either explicitly or implicitly legal in most countries. In 2020, the European Court of Justice ruled that CBD was not a narcotic, which should clear up a lot of legal grey areas. Growth is projected to grow to €1.5bn by 2023, and as a youthful market, there is considerable opportunity for market penetration by new companies.
CBD in America
America currently dominates the CBD market, with 40% of the global market share. With the rapid recent legalisation of cannabis across North America, the general market has seen significant growth. That said, Europe’s market is expanding, and with a current 31% market share, it is predicted to overtake America.
While the most common form of cannabis administration is through smoking, CBD can be taken in far more therapeutically appropriate forms. The most common is CBD oil; this is easily marketable and easy to pack, making it a financially viable product.
Marketing efforts continue to distance CBD from the more subculture associations of cannabis, increasing its appeal to a wider market. As CBD continues to gain in popularity and if studies continue to shine it in a positive light, it will start to enter the mainstream, helping to further its market capitalisation.
Just five years ago, the biggest hurdles to growth in the market were regulatory in nature. With the rapid legal advances listed above in both Europe and America, there is little left to hamper growth, as is evident in the proliferation of available CBD products. It is fast becoming a safe investment, however, only time will tell how market trends continue to develop.
As research continues to positively assert the health benefits of CBD products, consumer confidence will only continue to increase. There will also be a greater tie-in to the wellness and personal ritual aspects of CBD, as online retailers such as GREENHAUS have discovered. Increasingly, consumers are looking to make how they relax an integral part of their daily lives, with CBD showing no signs of slowing as a go-to option.
While anecdotal evidence has been plentiful, hard evidence resulting from peer-reviewed studies is only now beginning to fully inform the effects; further studies and experimentation will likely lead to innovation in the market, in turn leading to more effective and affordable products.