Does CBD Fit Into The $40 Billion Global Cannabis Market?
Market research team Arcview and BDS Analytics teamed up once again and released their latest State Of Legal Cannabis Markets report. According to the report, global cannabis sales could reach $40 billion by 2024 thanks to legalization efforts across North America, Africa, and Europe.
In the U.S. alone, cannabis sales jumped more than a third! In fact, the U.S. continues to lead the way when it comes to the global cannabis market. And this market at long last finally includes the sale of hemp-based CBD products such as tinctures, oils, and edibles.
U.S. CBD Sales Included In Cannabis Market Research Report For The First Time
Arcview and BDS Analytics for the first time included the sales of CBD products and hemp-based pharmaceuticals in the U.S. in what they described as the “total cannabinoid market”. The report reveals that CBD sales in the U.S. could reach a staggering $20 billion, which will give this market a significant boost over the next five years.
The Difference Between CBD And Marijuana In The U.S. Cannabis Market
Since the passing of the 2018 Farm Bill and the legalization of industrial hemp, U.S. retailers now have the opportunity to sell CBD oil or infused products like CBD edibles or topicals. Industrial hemp is considered cannabis, but it is a type of cannabis plant that is higher in CBD and lower in THC. This is what makes it different from marijuana, which is only legal for medical or recreational use in 33 states so far and most likely more to come. CBD, however, can be sold in all 50 states.
To legally sell CBD products, companies can only use industrial hemp that contains .03% THC or less. Most CBD companies now provide lab reports with all of their products so you know exactly what you’re getting.
So How Exactly Does CBD Fit Into The Global Cannabis Market?
According to Arcviews report, North America accounts for nearly 90% of global cannabis spending. In the U.S., cannabis sales in legalized states like Arizona and Colorado jumped 12% from last year. Even though these numbers don’t include the sale of CBD products in the U.S. initially, it does, however, show that American shoppers are the driving force behind the growth of the global cannabis market.
With U.S. CBD sales projected to be over $20 billion by 2024, there’s not much doubt that this growing demand for CBD products will boost the bottom line of the global cannabis market, and one of the biggest opportunities for CBD to fit into this market is with edibles.
BDS Analytics recently developed a new cannabis classification in their report called “ingestibles”. This includes edibles and sublinguals ( CBD oils that are taken under the tongue ), with candy being the most popular, followed by chocolates and infused foods.
CBD can be used in so many different ways so it’s no surprise that it’s becoming more and more popular in the U.S. and around the world. However, CBD’s positive influence on the overall growth of the American and worldwide cannabis markets is the result of many trustworthy companies doing their part to ensure that customers know exactly what goes into their favorite CBD products.
Governments and CBD companies have come a long way, but there’s still a lot of work ahead, in our opinion, however, the CBD industry and governments across the globe are working hard to ensure a bright and promising future for CBD and the global cannabis market.