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If you look back over the last ten years, a hot topic that comes to mind is CBD, or cannabidiol. It dominated headlines and had an extreme impact on economic markets worldwide.
This hemp-derived product is becoming increasingly well-known for its health and wellness benefits, with users around the world turning to it as a holistic remedy.
As CBD’s popularity increases, you may be curious about how it will fare in the future economic environment. Check out these 6 market predictions that you should look out for this upcoming year.
1) Sales Will Increase
One of the most likely possibilities for cannabidiol is that sales will continue to increase. Back in 2018 after Congress passed the Farm Bill, New Frontier Data released an impressive prediction: the CBD market will triple by 2022.
In 2018, the CBD market was worth $390 million. In 2020, Globe News Wire reported that the market is up to a whopping $967.2 million value. With these numbers in mind, we can assume that cannabidiol sales will continue to increase heading into 2021.
2) The Product Range Will Diversify
CBD already comes in many forms and can be consumed in various ways. From CBD cream to edibles and tinctures, the possibilities are many. In 2021, you can expect to see the product range diversify even more.
Brands all over the world are experimenting with unique ways to use this cannabinoid. Some experts are even implementing nanotechnology into CBD to make it more effective and long-lasting.
3) The FDA Will Relax Its Stance Against CBD
The Food and Drug Administration (FDA) regulates various products meant for human consumption.
According to the FDA’s most recent regulations, any substance that contains cannabidiol is classified as a Schedule I drug.
However, in 2018 the FDA classified Epidiolex, a CBD-based epilepsy treatment, as a Schedule V drug.
A lot of businesses have viewed this announcement as welcoming news. With this change enacted, there is a chance that the FDA will categorize all cannabidiol products as Schedule V drugs.
4) More States Will Legalize CBD
In 2018, Congress passed the U.S. Farm Bill which legalized the sale and production of hemp-derived cannabidiol. Since then, hemp-sourced CBD has become legal for any use in most states. It’s safe to assume that the remaining states will quickly follow suit.
Fewer states have legalized marijuana-sourced CBD (for recreational and medical use), but the growing industry will likely cause them to reconsider.
5) Investors Will Gain More Interest in CBD
Even though product sales are a good indicator of CBD’s success, there are also behind-the-scenes factors that aren’t as obvious. As the cannabidiol market grows, investors will likely take an interest.
Numerous cannabidiol stocks have performed very well in the last year. At the time of writing this, stocks like GW Pharmaceuticals and Canopy Growth have grown by 29% and 51% within the last year.
In 2021, investors will want a piece of this financial success for themselves. They will likely incorporate more cannabidiol companies into their stock portfolios.
6) The Number of CBD Dispensaries Will Multiply
To fulfill increased sales and explore different product ideas, the number of CBD dispensaries is likely to multiply. Business owners will apply for licenses to open dispensaries. Relaxed regulations will make it easier for these businesses to get off the ground and reach new customers. These new operations will likely spring up in new, unchartered regions to meet the increasing demand.
Final Thoughts
As 2020 comes to a close, it doesn’t look like CBD’s popularity is going anywhere. As an industry, we believe that it will continue to grow well into 2021 and beyond.
