You might not have heard of CBD, but you will soon.
You might not have heard of CBD, but you will soon. CBD is among more than 100 cannabinoids found in cannabis and hemp plants. CBD is different from its cousin, THC, in that it does not produce the psychoactive effect commonly associated with a marijuana high. Claims about the potential therapeutic benefits of CBD support its use for migraines, chronic pain, epilepsy, depression, anxiety, and autoimmune diseases. There are even CBD products designed for pets. You can now buy CBD at gas stations, convenience stores, and even your local CVS. This product is more readily available than ever before, and it’s about to go mainstream. [This article, “The CBD Business is BOOMING Here’s Why” was originally published in HealthXWire]
A February 2022 Vantage Market Research report stated that the total Global Cannabidiol (CBD) market is projected to reach $47.22 Billion by 2028. In a market that was estimated to be valued at USD 4.9 Billion in 2021, these figures predict a compound annual growth rate of 21.3%. In other words, the CBD business is booming. Greater public awareness of the potential health benefits of CBD is a major factor in the explosive growth of this market, but reduced stigma from the trend towards decriminalization of cannabis also plays a big role.
The Trend In CBD
The trend toward the legalization of cannabis and its products has helped to open the CBD floodgates. As people gradually stop viewing marijuana use as a criminal act, the plant is moving into the mainstream. In 2012 Colorado was the first state to legalize the use and sale of recreational marijuana. While marijuana is still illegal at the federal level, the trend is towards decriminalization at the state level. As of April 2022, 31 states and Washington D.C. have decriminalized marijuana. In general, the Justice Department has not challenged state laws in court and does not pursue cases where individuals have been in compliance with state laws. Gradually, the public is beginning to accept the idea of recreational marijuana use, and this has greatly reduced the stigma of buying and using cannabis products.
Wild West CBD Market
But while the laws on cannabis are changing, regulators are struggling to catch up. In the Wild West of a largely unregulated market, the major players are competing for market share as they respond to high demand and high profit margins. CBD is rising to the forefront of public consciousness, and it seems like everyone is trying to get in on the gold rush. However, some unscrupulous players market poor quality products or even products that contain no CBD. A recent study showed how large the quality gap could be when it comes to buying CBD as a wellness supplement. Analysis of 84 CBD products purchased online revealed that more than 25% contained less CBD than listed on the labels. Eighteen of those products contained THC in varying concentrations.
Leaders In The Field Of CBD
Fortunately, many industry leaders support rigorous testing of their products and make the results of these tests available to customers. Franny’s Farmacy, an emerging powerhouse in the CBD business space led by CEO Franny Tacy, is a standout example of this commitment to quality. This vertically integrated brand follows all of its CBD products from the farm to the point of purchase, and the quality analysis of each product is available to consumers through QR codes. Franny’s Farmacy demonstrates a commitment to both transparency and quality, providing a wealth of information on its website. Many other top players in the CBD market are adopting this approach. Named by Healthline as a top CBD brand of 2022, Joy Organics sells thoroughly tested products that are also certified organic.
CBD Health Claims
However, CBD users should be aware that the health claims surrounding CBD have not been evaluated by the FDA. Right now, the only FDA-approved CBD product is Epidiolex, a prescription drug recommended for the treatment of epilepsy. In a recent statement on its website, the FDA said: “It is important to note that these products are not approved by FDA for the diagnosis, cure, mitigation, treatment, or prevention of any disease. Consumers should beware purchasing and using any such products.” Several warning letters have been issued to companies that market unapproved CBD products.
Major Big Box Retailers Offer CBD
But resistance from the FDA hasn’t stopped major retailers and prominent CBD brands from aggressively marketing and selling their products. A February 2021 report revealed that CVS Health offered CBD topicals at over 800 of its stores, and Walgreens Boots Alliance offered this category of product at 1500 stores across the United States. The report cited high profit margins and high product demand as factors in the adoption of CBD product lines by major retailers. A June 2020 consumer survey showed that although 55.3% of CBD buyers made their online purchases at CBD brand websites, about 40% reported buying cannabidiol at Amazon. The sale of CBD by major retailers such as CVS and Amazon is a big factor in the mainstreaming of the product.
The demand for this once uncommon health product is only increasing. According to a recent Forbes Health survey, 60% of adults have tried CBD and believe that it has health benefits. The same survey found that 64% of adults viewed CBD as being safer than alcohol. As more people accept CBD as being part of everyday life, more consumer dollars flood the market. Top brands such as cbdMD have pushed CBD to the forefront of public consciousness. CbdMD was carried at over 4,000 retail outlets as of February 2020 and was the first CBD brand permitted to advertise in Times Square. Medterra, another top brand, has rallied to the front of the CBD market with aggressive search optimization and low-priced topicals. More and more major players are rising in the CBD market as they respond to high demand and high profit margins.
2018 Farm Bill
The recent explosion of interest in the CBD business can be traced to the 2018 Farm Bill, which made hemp and hemp-derived CBD federally legal. The CEO of Franny’s Farmacy was at the forefront of the movement, attending the national press conference for the passing of the Farm Bill as the US farmer representative. Franny Tacy stated, “Hemp and cannabis will revitalize agro-economies across the country and stimulate our economy in ways we haven’t seen or expected. And might I add, of the 450 thousand plants in the world, cannabis is the only crop that can feed, clothe, shelter, and provide medicine.” Hemp is legally defined as a cannabis plant that contains less than 0.3% THC. Franny’s Farmacy uses hemp wood as a building material, sells hemp clothing, and offers a CannaCafe featuring tasty baked goods and CBD beverages. As hemp products expand their reach in our everyday lives, CBD businesses expect more mainstream acceptance and, as a result, more business than ever.
Consumers who are discovering the many potential health benefits of CBD have more options than ever before, and with the mainstreaming of cannabis and its products, business is booming. As the laws on cannabis gradually trend towards decriminalization, there is a lot less stigma about the use and sale of this plant and its products. The most successful CBD brands place their focus on visibility, transparency, and extensive product testing. In a largely unregulated market, major retailers are jumping on the CBD bandwagon to take a slice of market share. These days, it seems like everyone is trying to get in on the CBD gold rush.