The year is coming to an end, and the U.S. is nearing its one-year anniversary with legalized industrial hemp agriculture.
In the wake of the legal change brought by the 2018 Farm Bill, thousands of Americans have tried out cannabidiol, or CBD, products for the first time. Now the value estimates for the market of CBD and industrial hemp products show the industry is in for rapid growth in coming years.
According to MarketWatch, the global CBD industry was worth just over $300 million in 2018, but that number is expected to rise as high as $2.25 billion by the year 2025. [1]
QY Research, which performed the study on the CBD economy, attributed the potential for massive growth to the legalization in the U.S. and subsequent popularity that has begun to grip both America and the world. [1]
And in case investors or customers think the CBD craze is just a fad, they would do well to note that hemp has been used for centuries in textiles, rope manufacture and other uses.
Marijuana’s long-term popularity also indicates that those who want its benefits in a legal, non-psychoactive format are likely to be extremely numerous and interested in CBD.
Another study published at MarketWatch indicates that industrial hemp, grown for both its manufacturing uses and to be turned into CBD, is also likely to push new boundaries of market value in coming years. [2]
The report separates hemp’s uses into biofuel, fiber processing and oil extraction. CBD oil has been made into snacks, lotions, soaps and just about every niche item one could imagine.
It has also been used in ecologically sustainable bioplastics, concretes and other unorthodox end products for those looking for more green alternatives.
Much of the growth in the CBD space relies on lawmakers taking a clear, light touch approach to regulation. While 2019 saw much of this in the U.S. at the Dept. of Agriculture and in state governments, agents of the Food and Drug Administration have been less helpful.
By taking months to work out reasonable and understandable rules to govern CBD retailers and manufacturers, the FDA has given some investors and consumers second thoughts despite promising uses for the cannabis compound.
It and other regulators would do well to listen to this summer’s reports of the World Health Organization, where scientists found that CBD use is not linked to health dangers, despite some confusion from the FDA in its announcements.
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