The future of CBD oil is realigning after a shaky pandemic.
Brightfield Group projections estimate that the CBD oil market will likely gather as much as $27.3 billion in the next three years. These numbers might make CBD products “the next big thing” in the health and wellness industry, creating an untapped market share for eager entrepreneurs.
Additionally, with CBD becoming the new buzzword on social media platforms, you can expect e-Commerce companies to increase their numbers. Twenty new companies emerged as contenders for the future its industry in 2017 alone. Most of the companies had flagship products ranging from CBD creams and edibles to cocktails and tinctures.
CBD dispensaries are another consumer favorite hotspot. However, these venues have taken the backseat somewhat after COVID-19’s socially restricting impacts.
To understand how CBD’s future looks, you need to educate yourself on its legalities, market trends, manufacturing challenges, and a whole host of other details. Here’s a comprehensive guide to help you start on the right foot.
Future of CBD Producers Will Face Challenges
Scientists have stepped up their research on it. However, most of it hasn’t progressed to human clinical trials. While many people provide a lot of anecdotal evidence on CBD’s medical boons, uncertainty is still high.
Despite this, manufacturers continue to invest in what they believe to be a product primed for significant ROIs in the future.
CBD production isn’t that straightforward a process. It requires a massive workforce, resources, and facilities.
First, you need to have thousands of hectares of land for cultivation at your disposal. Then, you have to tackle the refinement stage, where simple ingredients are processed to yield a much more market-ready product. This mechanism requires state-of-the-art facilities, where many regulatory tools are standardized to ensure industry-level hygiene standards. Finally, you have to carve out effective distribution networks to transport large CBD quantities across domestic and international channels. Consequently, you need enormous budgets to sustain yourself in a budding CBD market.
In CBD’s imminent future, many of these production challenges might open doors for innovative technologies. Standardized CBD oil is one possibility, which promises better yield and effective ingredients control.
You can also expect an increase in some expensive alternatives, such as organic USDA certified CBD products. These products are likely to fit into the broader organic or “green” market, which has already garnered millions of consumers over the past decade.
Before investing in the CBD industry, make sure you’re considering the following production factors:
- Source of the Hemp: Hemp’s origin matter. It would be best if you found out about the origination of hemp. One of the best places to source hemp from is Colorado. Colorado’s excellent land and weather conditions make it an optimal spot for cannabis cultivation.
- The manufacturing process involves extraction, refinement, and isolation. Understanding each step will educate you on the quality of the end product. For example, you’ll have to ensure that the extraction method you use to harvest CBD is consumer-friendly. Many consumers prefer the carbon dioxide extraction method because it yields a refined and high-quality product. To break into the highly competitive market, you need to place quality as your central plan, as this is your only way forward.
- Many products in the market are subpar. Therefore, questions regarding their quality have arisen. Third-party testing helps to remove these concerns and assure consumers of their choices.
- You also need to look into the possibility of providing a one-stop service. If you can invest in companies that offer a full range of CBD products, you might fare a lot better from oils to tinctures.
CBD Legalization and Regulation Will Have Complications
The 2018 farm bill was one the first step towards cannabis legalization in the US. Many states benefited from this legislation.
However, legalization at the federal level has stalled. Moreover, CBD state laws vary from state to state. While federal law has made CBD with .3% THC content permissible for commercialization, state laws don’t universally agree with this limit due to strained CBD legalities.
A prime example of this is Idaho, where hemp-extracted CBD is legal as long as it is devoid of THC metabolites.
Globally, laws concerning CBD production, distribution, and commercial usage are becoming more convoluted and confusing. But, this hasn’t marred the future of CBD. According to recent figures, Europe and North America lead CBD production, contributing to 75% of total CBD distribution.
If you’re looking to dip your hands in the CBD industry, it’s better to take a good gander at CBD legislation before making any decisions. You can also collaborate with a partner who has expertise in CBD law and can help you overcome potential legal obstacles.
Vaping Products Might Lose Their Appeal in Future of CBD
After the vaping incident that sent shockwaves in the CBD community, CBD e-cigarettes have lost their appeal.
CDC reported 2,602 vape-linked hospitalizations and fatalities in 2019. These cases forced many US states to take protective action and ban certain CBD products, especially those adulterated with harmful additives, such as Vitamin E oil. Shortly after, the FDA followed suit and imposed bans on flavor-cartridge e-cigs, except for menthol varieties.
Consequently, the pot industry registered a massive financial blow and had to reposition its products. In August of 2019, CBD oil sales skyrocketed to a record $160 million but fell almost 26% two months later. Fortunately, this drop didn’t affect major stakeholders.
Although the vaping incident was unfortunate, it was also an important lesson. With the rising awareness of CBD’s potential benefits and risks, authorities pay more attention to CBD regulation.
You can also expect a visible rise in other CBD products after the decline of vaping. These include CBD gummies, pills, and of course, oils. CBD edibles have specially gathered massive attraction because of their widespread application in homemade recipes, such as brownies and smoothies.
CBD’s Popularity on Social Media Will Explode
Google Trends data suggests a positive increase in its searches in 2020 worldwide. In the next five years, these patterns are going to reach even newer heights. In particular, the US has experienced a marked increase in searches associated with reputable CBD brands, such as Dan Bilzerian’s ignite.
Many other parts of the world have also shown similar behavior, which has made it somewhat of a global phenomenon. As per speculations, it might carve out a niche of its own in the coming years if it hasn’t already.
Linkfluence Search reported 3.8 million posts related to CBD in a single year. Out of these, US consumers were responsible for a staggering 50% post.
So, why is the CBD noise so loud in the US? It is partly owing to the US media’s role in mobilizing a strong voice for Marijuana legalization, which has spread to social media platforms like Facebook and Twitter like wildfire.
The Reddit community also has a stake in furthering the future of CBD in public forums. Many users ask for suggestions regarding its usage, benefits, and even dosing accuracy on Reddit. Many Reddit users have also shared their unique experiences in detailed posts. One 28-year-old man reported having curbed his chronic anxiety with CBD oil.
CBD’s popularity is also quite prevalent in both men and women. Even more surprising is the fact that it is a commonplace topic in an older demographic. Many users above 50 years old have dedicated communities to spread awareness of CBD’s many potential applications.
You’ll also find many subforums on these platforms exclusively committed to exciting CBD’s miraculous benefits, such as CBD for pain, CBD for cancer, CBD for stress/anxiety.
All this attention points to one thing only: The future is bright and vigorous.
Funding For Future of CBD Research Will Increase
As CBD products become mainstream, consumer demand will shoot through the roofs. From CBD infused wine to edibles, consumers will flock to experiment with a variety of its products. Hence, the future of the its industry to promising places will propel.
The three markets that are likely to make the biggest splash in the US include:
- Hemp-derived CBD
- Marijuana-derived CBD
- Pharmaceutical-grade CBD
You’re also likely to see many technological advancements in its production, including the commercialization of genetically engineered crops. These crops will have better shelf-life, resistibility to harsh environmental conditions, and improved yield.
Also, as CBD’s market demand increases, funding and grants for scientific research will again climb. The impact will create a massive buzz around it and iron out the wrinkles surrounding its legalization, usage, and science.
Is its market saturated? Yes, but you still have time to make your mark.
Moreover, though CBD’s future seems promising, authorities will need to have specific regulations in place to prevent potential risks associated with CBD commercialization. Law enforcement might also have to administer strict controls on underground black markets, responsible for the circulation of cheap and low-grade CBD products. These markets are especially harmful to consumers who are desperate to treat underlying conditions but can’t because of several medical and administrative hurdles. Overall, the future of CBD will boom, with many players sharing the CBD pie.