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US sales of natural CBD products could reach $ 20 billion by 2024.

25/10/2021 | hempmarket
heading_title

If the FDA approves plant-based CBD as a dietary supplement for use in conventional retail products, sales will rise and the market structure will change. Easing restrictions on plant-based CBD supply will cause explosive growth in the retail market, leading to a boom in plant-specific cultivation. Among products made from hemp, food is by far the most consumed category.

In one of the electronic publications of the Forbes magazine, there was a link to the analysis of the CBD market, jointly conducted by the companies "BDS Analytics" and "Arcview Market Research". Naturally, the editorial staff of the profile electronic journal of national cannabis growers have carefully studied this document and extracts from it are offered for familiarization to our dear readers and listeners.

Following the adoption of amendments to the 2014 “Law on Agriculture”, which created the basis for the cultivation of industrial crops of technical hemp through pilot programs, the adoption of the amendments to the “Law on Agriculture” of 2018 took the hemp industry one step further by providing opportunities for commercial growing cannabis and charting new avenues for plant-based cannabidiol (CBD / CBD) businesses.

Amendments to the 2018 Agriculture Law decriminalized industrial cannabis, defined as Cannabis sativa plants containing less than 0.3 percent tetrahydrocannabinol, providing opportunities for the development of food, beverage, health and beauty businesses. As a result, a huge number of companies have started adding hemp-derived CBD primarily to their food and beverage products.

However, the current legal regulations remain unclear and can be interpreted, and some of the products containing plant cannabidiol exist to some extent in the gray zone. In particular, the 2018 Agriculture Act language retained the FDA's mandate to regulate products containing hemp ingredients or derivatives. That is why the position of the FDA staff at the moment significantly affects the opportunities for the sale of certain categories of goods containing cannabidiol on the market.

For example, the FDA claims that CBD can cause liver damage, drowsiness, diarrhea, and mood changes. In addition, employees of the aforementioned government agency have expressed concerns about taking CBD along with pharmacological drugs. In particular, the FDA regularly warns in writing numerous companies that market various cannabidiol-containing products as a quasi-panacea for diseases such as anxiety, stress, sleep problems and depression. But that hasn't stopped companies like Weller, Vybes or Recess, among others, from positioning their CBD-supplemented drinks to consumers as “wellness” products and selling them online and at select retail locations across the country. ...
This is due to the fact that consumers took plant cannabidiol and named pain relief, as well as improving the quality of life, the main reasons for purchasing products that contain it.

Based on the above, a logical question arises - where is the CBD market heading against the background of these problems, and what is the current consumer demand for plant-based cannabidiol in the United States.

BDS Analytics and Arcview Market Research believe that regulating the legality of plant-based CBD on the market will accelerate sales of products containing it and open up new distribution channels. While sales of CBD-containing products were around $ 1.9 billion in 2018, the market is expected to hit the $ 20 billion mark by 2024, mainly driven by the proliferation of new products, as well as their greater availability.

According to employees of the aforementioned companies, CBD sales at hemp dispensaries in 2018 were $ 1.2 billion, compared with $ 624 million in regular retail stores. They also note that pharmaceuticals that contain CBD make a "very small" contribution to overall sales.

The above companies predict that if the FDA approves plant-based CBD as a dietary supplement used in conventional retail products, sales will rise and the market structure will change to $ 5.3 billion, $ 12.6 billion for retail stores and $ 2 , 2 billion for pharmaceuticals by 2024.

Easing restrictions on plant-based CBD supply will spark explosive growth in the broader retail market, leading to a boom in plant-specific cultivation. However, there are obstacles that the industry must overcome in addition to legal ones, such as consumer confusion.

While consumers are interested in the potential of plant-based cannabidiol, many still need at least a minimal amount of information about products containing this drug-free cannabinoid. Consumers are usually unaware of the benefits of CBD, how it differs from tetrahydrocannabinol (THC), and are often unsure about the products on the shelves. Reliable product testing, customer relationship building, and consumer education can help the industry address these challenges.

Research by companies found that 47% of US adults surveyed did not know the difference between CBD and THC. Meanwhile, 52% of respondents believe that hemp products induce highs or feelings of relaxation and drowsiness.

“To reach the $ 20 billion mark in sales of products containing plant-based cannabidiol by 2024 will require information work with a wide range of potential consumers,” the aforementioned companies say.
Today, inhaled and sublingual drugs are the largest product categories in the hemp market, but there is already a trend towards consumers moving away from them to food, beverages and cosmetics. Analysts from BDS Analytics and Arcview Market Research note that CBD food products will become the largest part of the US cannabinoid market in the next few years.

The volume of prescription drugs that contain CBD will also grow. Meanwhile, other important categories to look out for are health products, cosmetics and vitamins. Among products made from hemp, food is by far the most consumed category.

Commentary of the specialists of the Association "Ukrainian technical hemp"

I would like to draw your attention to the fact that it is the regulation of the legality of the use of drug-free cannabinoids at the level of regulatory documents that provides opportunities for the development of various sectors of modern cannabis farming. The analytical material of two American companies at once demonstrates the huge prospects for the development of various businesses related to food, drinks, beauty products and, last of all, health. It is emphasized that if the government agencies responsible for this issue approve the possibility of using plant cannabidiol as additives (food, feed, biologically active, dietary) used in ordinary retail products, sales of products containing them will significantly increase, and the market structure itself will change. There is a trend in which consumers are shifting away from pharmaceuticals to food, beverage, and beauty products, with CBD products arguing to be the most consumed category in the US hemp market.

The problems raised by American companies are similar to those present on the national market, with the only difference that foreign pharmaceutical companies impose on Ukrainian consumers a paradigm that there is no alternative to the prescription use of the therapeutic properties of the hemp plant, while lobbying for legislative changes that make it impossible to use the healing / medicinal properties of the plant. in other segments of modern cannabis farming (food, cosmetic, production of various kinds of additives, etc.), and in the USA the pharmacological lobby cannot afford to promote its own products on the market so aggressively, destroying competitors along the way.