A new report from BDS Analytics titled “The Global Cannabinoids Market: Will CBD Overtake THC?” is forecasting that CBD sales will reach $20 billion by 2024. This would account for nearly 44% of the $45 billion total forecasted
cannabinoid market (which includes legal cannabis).
Cannabidiol or CBD is a natural compound found within the cannabis plant. The report notes that CBD was first extracted from the cannabis plant in 1940, but it wasn’t until 1946 that Dr. Raphael Mechoulam identified the structure of CBD and later discovered properties within the compound to treat epilepsy. Since that time, the FDA approved the GW Pharmaceutical CBD drug Epidiolex for use in treating rare forms of epilepsy. Congress also passed the 2018 Farm Bill, which legalized help and set off a tsunami of hemp-derived CBD products onto the marketplace.
Last year, CBD sales hit $1.9 billion. BDS predicts that these sales will grow 49% annually. The report went on to say, “Further, sales of hemp-derived CBD (as opposed to CBD from marijuana) in U.S. general retail stores are expected to makeup $12.6 billion of the $20 billion in CBD sales forecast for 2024.”
The CBD market splits into two categories: the hemp-derived CBD that can be purchased just about anywhere and the CBD from marijuana that contains some amounts of THC. Many consumers believe the latter’s entourage capabilities are more effective. CBD sales in legal dispensaries rose from 3% in 2017 to 10% in 2018. BDS believes that as more mainstream consumers try CBD from hemp, they may be more disposed to going to a legal dispensary to try the marijuana-derived CBD.
The one drawback to the expected enormous growth of the CBD market is how the FDA plans on regulating the products in foods and beverages. The regulatory body has already cracked down on label claims forcing CVS Stores to remove Curaleaf products from its shelves. Hearings were held this past May with over 100 speakers offering their opinions. There is no timeline as to when the FDA will release a guideline as to how corporations and producers should act with regards to CBD products.
BDS Analytics Consumer Insights research revealed “That consumers primarily use CBD as a ‘natural’ remedy
for pain, stress, anxiety, and depression. Further, CBD consumers are divided 45% female, 55% male with an average age of 43, 40% are higher-educated and 50% are employed full-time.”
The top-selling CBD product categories are:
- Ingestibles $883.5M
- Topicals $491.2M
- Inhalables $395.4M
- Pet Products $63.8M
- Pharmaceuticals $16.0M
Source: BDS Analytics Industry Intelligence