The CBD industry is booming right now, and it seems like everyone wants a piece of the pie. What was once seen as a marginal product is really gaining some mainstream attention and momentum right now, so much so that it has even been referred to as the next “Gold Rush” by some observers.
However, businesses are still facing challenges, and the market remains largely unregulated, which makes it harder for customers to find quality products. Government agencies are also looking into it and trying to build a regulatory framework around the industry. Let’s take a closer look at the numbers and what they mean for the future of the CBD business in America.
CBD is Already a Multi-Million-Dollar Business
Even if regulation is still murky around it, the industry was already worth over 500 million in 2018 and has been slated to hit the 22 billion mark by 2022, making it one of the fast growing industries in the country.
What is responsible for this boom is the increasing number of CBD infused products that are being introduced on the market. You now have everything from face masks, topical creams, balms, and various food products being infused with CBD. All these products allow it to reach demographics that would otherwise be apprehensive about consuming it. We can only expect the number of these products to keep growing as CBD starts getting more mainstream recognition and the public is more aware of its actual properties.
Hemp Farmers are Struggling to Keep Up with the Demand
The demand for industrial hemp has been so high that farmers are having a hard time satisfying the demand. Not to mention congress just recently legalizing hemp last December. The supply chain is also very cumbersome, and many farmers are still not familiar with the product. So, the risk of failing to provide high quality extracts is pretty high. Growing hemp is not like growing staple crops like wheat and corn. Farmers have been refining their farming techniques for decades and know exactly what to expect with these, not so much with hemp.
CBD Hemp Seed and Wholesalers are Also Benefiting
However, producers in states where recreational marijuana has been legalized already have a leg up on the competition and have amassed some critical expertise in growing it. This is why states like Colorado are some of the top producers of high quality bulk CBD hemp seeds. Companies who sell hemp seeds also sell CBD extracts in various forms, from crude oil all the way to purified extracts. This allows people who want to create derived products to get access to an already transformed CBD product and incorporate it in theirs. This lowers the barrier to entry to the business and offers tons of opportunities for budding and creative entrepreneurs who want to start a profitable CBD related business.
CBD is really the wave of the future, and we can expect to see even more of it in the years to come. With all its benefits and nearly nonexistent side effects, we can also expect big pharma to come around and look at the possible pharmaceutical applications of this compound.