A major submarket of the marijuana products industry is cannabidiol. CBD is the part of the plant that is not associated with the side effects of THC, so therefore CBD is usually used for medical reasons and not recreational purposes.
A report by The Hemp Business Journal projects that the CBD market will reach $2.1 billion in consumer sales by 2020, with $450 million of those sales coming from hemp-based sources.
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The report reveals that in 2015, the market for hemp-derived CBD products was worth $90 million. The addition of the $112 million in marijuana-derived CBD products were sold through dispensaries and the total CBD market was worth $202 million in 2015.
Others have similar or more optimistic estimates about the industry’s future. Matt Karnes from Greenwave Advisors stated, “In terms of the CBD market size, I estimate an almost $3 billion market by 2021. Right now there are 15 states that allow CBD only – this is in addition to the 28 states plus DC that have legalized medical marijuana.”
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A report by Forbes points out there is evidence that traditional cannabis users are willing to give CBD a try. Outco, the largest licensed cultivator in Southern California published data that shows 38% of users and non-users claimed they wanted to learn more about CBD oil.
For more cannabis business coverage, visit the MJ News Network.
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