According to reporting from Bloomberg, Cowen & Co. recently reported in their new analysis that the booming CBD industry may reach the value of $16 billion by the year 2025. [1]
The analysis by Cowen was described as a ‘conservative’ estimate based on the result of their survey of 2,500 people, among whom 6.9 percent reported that they used CBD oils and products as supplements.
New reports on the potential growth of the CBD industry are especially promising given the recent, limited enforcement of localized bans and restrictions on CBD in food and drink in places like New York City, Ohio and Maine.
Luckily, these projections seem to hint that CBD is here to stay, especially among young people who use the products for anxiety, pain relief and forms of epilepsy, among others.
Cowen’s analysis found 18-to-34-year-olds were the heaviest users of CBD products, with CBD oil liquid extracts making up 44 percent of that use. Topical ointments and creams, capsules and beverages make up the next most popular CBD products, according to Bloomberg. [1]
The total population the report from Cowen expected might move into CBD was 10 percent higher than the 7 percent currently using CBD, which means there could potentially be as many as 25 million CBD consumers by 2025.
Cowen & Co. isn’t the only market research firm with good tidings for the CBD industry. Earlier in February, QY Research produced a report which said the U.S. market for CBD may grow as much as $1.1 billion by 2025. [2]
The report on Globe News Wire which announced this QY Research projection attributed those possible market expansions to the wide-ranging properties of the CBD market.
Because there are market opportunities in the growth of hemp itself, CBD extraction and end-product creation, these economic projections seem to make sense.
What gives these researchers such a high expectation of the industry is the variety of end-products CBD can create.
Companies have the option to join the brands who specialize in bringing specific, niche products to market like those producing CBD dog treats or CBD bath bombs, or move in to spaces where they take on the more common, straightforward tincture oils in the best and most cutting-edge manner possible.
Whichever method companies choose, they’re bound to find some way to be useful and distinguish themselves in this new and budding market, which only makes things more promising.
Still, in uncharted waters it is helpful to have a guide. For customers, the retailer is often their first point of contact and source of information about exciting new CBD products. For that exact reason, Nothing But Hemp has three locations around the Twin Cities metro to assist newcomers.
Customers aren’t the only ones who need a guide, however, and entrepreneurs are often just as wary of the new industry. Fear not, as Nothing But Hemp also offers franchise opportunities and incentives to help those curious about how to serve customers and profit from the booming CBD market. [3]
Sources
[1] https://www.bloomberg.com/news/articles/2019-02-25/elon-musk-faces-u-s-contempt-claim-for-violating-sec-accord
[2] https://globenewswire.com/news-release/2019/02/04/1709838/0/en/Global-CBD-Hemp-Oil-Market-to-Grow-around-US-1110-Mn-by-2025-QY-Research-Inc.html
[3] https://www.nothingbuthemp.net/blog/nothing-but-hemp-continues-innovating-in-the-cbd-industry-with-new-franchise-opportunities