CBD (Cannabidiol) is typically used for medical reasons instead of recreational purposes like getting high. The CBD products are either derived from hemp or cannabis plants. The Hemp Business Journal estimated that the CBD market will grow to a $2.1 billion market in sales by 2020. That’s a 700% increase from 2016. In 2015, the CBD market brought in a total of $202 million.
“In terms of the CBD market size, I estimate an almost $3 billion market by 2021. Right now there are fifteen states that allow CBD only, in addition to the 28 states that have legalized medical marijuana,” Matt Karnes of Greenwave Advisors stated.
There are over 800 CBD products being sold, according to Headset Research data in Washington. Most labels on these products are intentionally light on details so it can be difficult for consumers to choose products right for them. Since 2013 the market has greatly changed. Customers were paying $1.25 for a milligram 4 years ago. Now the prices have decreased to an average of 3 cents per milligram and the quantities have increased. However, heightened competition and the price reductions cut their sales figures in half even though their customer numbers have increased.
Medical Marijuana says its products are derived from hemp plants grown in Austria. They also own a company that develops a line of products, such as a 1,000 milligram pill made of CBD that is geared towards athletes that have to avoid products containing THC. The venture capital firm General Hemp, another business leader, made $34 million in CBD sales in the last three years. Another industry leader, Axim Biotechnologies holds a license for a CBD chewing gum which they received a patent for recently.
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