The hemp-derived cannabidiol (CBD) market will grow from $170 million in 2016 to $1 billion in three years.
The hemp cannabidiol (CBD) marketplace will reach a billion dollars in the next three years, according to projections in a new report from Brightfield Group. The market research company estimates that hemp CBD products generated $170 million in revenue in 2016 and a 55 percent compound annual growth rate will cause the market to balloon to $1 billion by 2020.
CBD hemp oil is extracted from hemp with high concentrations of CBD and only up to 0.3 percent tetrahydrocannabinol (THC). Because it contains only trace amounts of THC, CBD hemp oil products are non-psychoactive. Thousands of studies have been conducted on CBD, which interacts with our naturally occurring systems.
CBD hemp oil products, like those offered by Medical Marijuana, Inc., have become highly sought after in recent years. The Ninth Circuit Court of Appeals ruled in 2004 that the Drug Enforcement Agency (DEA) didn’t have the authority to ban hemp under the Controlled Substances Act. Today, they are sold as supplements and legal to purchase and ship throughout all 50 U.S. states and in over 40 countries.
“By that federal court ruling, similar to non-scheduled hemp food products, this allows Medical Marijuana, Inc. to sell online and distribute to customers in all 50 U.S. states,” Medical Marijuana, Inc. CEO Dr. Stuart Titus recently told Forbes in an article covering the new report.
According to the Brightfield report, 64.5 percent of all hemp CBD sales were made online, followed by 17.8 percent at smoke shops and 9 percent at dispensaries. Sales were also made at health stores and doctor’s offices.
“One of the most surprising things we found during this research was how many companies are currently operating in the space, and how few of them are generating significant revenue,” said Bethany Gomez, the Director of Research at Brightfield Group. “Essentially everyone is trying to do hemp, but only a handful are doing it well. It’s seen as easy because it can be sold online but, with restrictions on traditional marketing, it is very difficult to connect with your core consumer and even communicate why they need your product.”
CBD is one of over 85 cannabinoids identified in the cannabis plant. In hemp, CBD dominates the plant’s makeup. The extracted oil contains a significant level of CBD, as well as essential vitamins, minerals, fatty acids, terpenes, flavonoids, and other non-psychoactive cannabinoids. CBD and other cannabinoids interact with the body through the endocannabinoid system, which regulates homeostasis, or the body’s general state of balance.
“The cannabinoids provide essential and vital nutrients that support the human body’s highest levels of health and wellness,” Titus explained to Forbes. “Cannabinoid deficiency is rampant in our society and a contributing case of numerous medical conditions. Mother’s breast milk is cannabinoid-rich and the ‘runner’s high’ is a release of the endogenous cannabinoid, Anandamide. Thirty U.S. states now approve medical marijuana – certain, in the industry, we believe that ‘the trend is our friend’ and the end of cannabis prohibition is at hand.”
A report published earlier this summer by Marijuana Business Daily also concluded that the demand and market for hemp-based CBD products have skyrocketed in recent years.