Monumental Growth in the CBD Market
It’s no secret the hemp-CBD industry is growing, but by just how much is it growing? Projections are all over the place. Some websites say the industry is increasing at a rapid rate while others claim the industry is expanding almost exponentially. Some of those sites are dead wrong, making wild claims that may be based in some fact, but are stretching the bounds of those facts to the extremes. These sites focus on only the very best case scenario, often leaving out any discussion of the regulations surrounding CBD. To find the truth, let’s first start by examining the facts of the market.
From information collected by New Frontier Data in December of 2018, in that year alone, the hemp-based CBD market was worth $390 million dollars. They also found that the CBD market is growing about 18.4% yearly and will continue to do so for the next 5 years. This will lead to expansion of the market up to $1.3 Billion for hemp-derived CBD by 2022. That comes out to be more than 3 times the original market size in just a few years time. Other sites claim a growth to $2 Billion or more, depending on regulation. It is an impressive amount of growth for a relatively new industry. Now, it’s time to look at why this projection has grown so massively.
In December 2018, the U.S. Congress passed the Agricultural Improvement Act of 2018 into law. This included some complicated reforms for agriculture in general and funding for SPAN, but one section speaks far louder than all of those. The bill allows the removal of hemp from the Controlled Substances Act. This means that it has become far easier for businesses to effectively farm, create, and distribute hemp-based CBD products. However, there is a catch.
The catch is that even though hemp has been removed from the Controlled Substances Act, the CBD products are still regulated by the FDA, and DEA (if they are marijuana cannabis-based CBD products). Until the FDA approves of CBD products across the board, there are still difficulties that stand in the way of the hemp-derived CBD market growth.
This continued regulation by the FDA is what the information and estimate of growth to $1.3 Billion from New Frontier Data is based on. Others have different statistics, such as Forbes, which claims CBD products could reach $2.1 Billion. However, one group stands out with its fantastical claim of a growth to $22 Billion by 2022.
$22 Billion, up from $390 Million in 2018? Most sane people could tell you that something seems fishy here. That is a 5,541.03% increase. The study this ludicrous number was taken from was created by the Brightfield Group, a subscriber-based research institution. One of the issues I have with this estimate is that it combines all cannabis-derived products, and doesn’t separate hemp derived CBD products from marijuana derived CBD products. The study is misleading and misses many facts that are extremely important when looking to make an investment. There are many holes in the study’s logic including a lack of discussion about the regulatory climate and many missed real market factors. It is based entirely on the hope that the U.S. Government and all underlying agencies deregulate all CBD products and the steps involved in the creation of those products. It is extremely doubtful that it will completely deregulate CBD, however, the U.S. Government is heading towards more lenient regulations on hemp-derived CBD, which will allow much greater freedom for growth in the CBD market, even if it may be a few years down the line.
Investment and CBD for Your Business
Now is the time to start bringing CBD products into your business or start investing in the stock market. Though it is not increasing at 5,000%, the CBD market is still a rapidly growing market. Over the next five years, you could see growth ranging from 233-489% depending on regulations. With realistic, but enticing prospects like those, why wait around? As the saying goes, “Time in the market, not timing the market,” though in this case it actually is the time to enter the market.
If your state allows it, CBD products are flying off the shelves. Green Garden Gold offers a simple Wholesale application and a 30 day inventory buyback guarantee. For any Green Garden Gold products you are unable to sell after 30 days, we will buy it back so there is little chance for losses from inventory. After you complete the Wholesale application, you will be contacted within 24hrs, and you can start ordering fantastic CBD products online, delivered to your business.