CBD Market Outlook for 2019
Early September this year, New Frontier Data, which is a Washington business analytics company focused on the cannabis industry, released the most relevant report up to date, the CBD Report: 2018 Industry Outlook. In this report respectively, the company published some staggering figures that grabbed the attention of every investment-oriented company on the market.
Following the leads, in this article, we’re going to provide you with a short analysis of the numbers inside the report. Additionally, we’re going to update you on the latest development regarding the Farm Bill in the U.S.
Now is a good time as any for you to find out how to grow hemp or start a CBD business and become a part of the industry. For more detailed information on that subject, you can read this Production Grower guide.
According to the data in the report, the CBD market is expected to reach $2 billion by 2022, while the U.S. CBD-derived market is estimated to grow to $646 million in 2022. Leaving the marijuana-derived CBD market with a projected growth of $647 million. That is an expected 700% growth in the field according to Forbes analytics.
What we know so far, is that with the FDA approval for Epidiolex, by the beginning of 2019 the sale of the drug will begin, opening the pharmaceutical channel. Epidiolex alone has a $625 million share in the CBD market. What’s more, by 2017, there were over 25,500 acres of hemp across the U.S., and 70% of them are used for CBD production.
One might say that $2 billion is an astronomical jump, given the fact that in 2017 the CBD market was worth approximately $202 million, but numbers don’t lie. In fact, CBD has seen a steady growth supported by medical studies in the field, product diversification, and global demand that influences and drives the revenue levels. CBD products are claiming a share out of the pet supplement market too, bringing it to almost $1.6 billion globally, and with an estimated growth of 3-5%.
However, for any of above to be sustainable, a solid legal framework is vital. According to the latest report by Daniel Cameron, a Roundtable’s lead DC lobbyist and former Legal Counsel to Senate Majority Leader Mitch McConnell, the possibility for a compromise deal between House and Senate leadership on the 2018 Farm Bill is possible, and it’s to happen soon. Senate Majority Leader, Mitch McConnell’s Hemp Farming Act, strives to legalize hemp and hemp-derived products like CBD permanently.
Senate Chairman Pat Roberts (R-KS), Senate Ranking Member Debbie Stabenow (D-MI), House Chairman Mike Conaway (R-TX) and House Ranking Member Colin Peterson (D-MN), which are the leaders of the House and Senate Agriculture Committees have been discussing the Bill for months behind closed doors.
In the report by Daniel Cameron, the following was stated: “Waiting for passage of the reauthorized Farm Bill—with the Hemp Farming Act provisions—is not ideal, but every single action taken by Congress related to hemp has been positive and should give some level of confidence in the eventual legalization of the crop.”