Report: CBD market to reach US$22B in 2022

By @chelean on
Denmark’s medical marijuana program is exceeding expectations and companies are taking advantage of the Kingdom’s tax incentives and research grants. Photo by Matteo Paganelli on Unsplash

Cannabidiol or CBD is becoming popular in the past few years and within this year, its market is on course to reach US$591 million (AU$838 million) this year. But an analysis done by the Brightfield Group has predicted that the CBD industry could be a US$22 billion (AU$31 million) market in 2022.

CBD is a compound found in cannabis plants, similar to tetrahydrocannabinol (THC). The difference is that it is non-psychoactive compared to THC, which makes people high. But even though CBD does not actually provide a euphoric feeling to its consumers, some studies found that it provides therapeutic effects.

Over the years, ways of consuming CBD have evolved. Different products were developed to suit consumer demand. For instance, CBD companies like PotNetwork Holdings, Inc. (OTCMKTS:POTN) have developed CBD products such as edibles, vapes, drinks, oils, creams and even pet products. These products allowed consumers to have options on how they can take CBD — they can now eat, drink or smoke CBD.

Though there may only be a few studies that point out that there are certain health benefits in using CBD, some people have already relied on this compound when it comes to treating certain medical issues. According to Healthline , CBD can be used to reduce anxiety and depression, to relieve pain and to manage cancer-related symptoms.

These product developments may have been the reason why the CBD market is projected to become a multibillion- dollar industry, but there are still some factors that may have affected these forecasts.

cbd CBD is said to provide several health benefits which include reducing anxiety and depression.  Photo by Christin Hume on Unsplash

The recent approval of a drug with CBD

In June, the US Food and Drug Administration (FDA) approved Epidiolex, developed by GW Pharmaceuticals. It is the first drug that has CBD as an active ingredient to be approved by the agency. The drug is approved as a treatment for two types of rare epilepsy for patients two years or older. However, this treatment does not come cheap. According to Business Insider, the drug would cost US$32,000 (AU$45,400) per year.

Though this is the case for the specific drug, companies that offer CBD products offer them for affordable prices. For instance, POTN’s subsidiary Diamond CBD offer CBD products for as low as US$6.99. Depending on how much the product there is, some products cost as much as US$649.

The 2018 Farm Bill

Another factor that may have affected this great projection for the CBD market is the recent Senate approval of the 2018 Farm Bill that would consider hemp as an industrial crop, per CNBC . The 2014 Farm Bill expired on Sep. 30, and with the support of the Senate Majority Leader Mitch McConnell, it seemed that the proposed bill may include the legalisation of hemp. The bill was still waiting for congressional approval.

But what does this bill mean to the CBD industry? Though often derived from marijuana, CBD can also be extracted from hemp as it is also under the cannabis family. Hemp might also be the ideal source of CBD because it has lower THC, which is a requirement to consider a hemp plant as an industrial crop in the proposed bill.

These changes in legislation could really boost the CBD industry as the sources of CBD like marijuana and hemp are still highly regulated. The regulatory approval of a CBD-derived drug may also affect how other health agencies see the product. As more agencies and lawmakers continue to become open when it comes to marijuana, hemp or CBD, it would not be impossible that more people can enjoy the benefits of these products in just a few years.

IBT Australia does not endorse any product or practice mentioned here. The article is based on press releases sent for consideration.