The future of Cannabidiol (CBD) is will experience tremendous growth and acceptance because of the changes that have been happening over the last few years. There had been increasing public acceptance, changing legislation, and innovation in product offerings.
CBD has moved from being used for food to skincare and all kinds of consumer products. In a few years, it may be legalized in most parts of the world.
Now, in this article, we’ll be looking at some potential future trends that’ll happen in the CBD industry using the data and observations we currently have.
Some of the potential future trends are:
1. Acceptance and Legislative Changes
Did you know that as of 2023, 19 states in the United States have legalized cannabis for recreational purposes and for medical use?
This change is very important because even if some people abused it, it can still be used for the good of society.
Legalizing it means the society can accept it and it is a great source of revenue for the states and more profits for CBD businesses.
However, the fact that it has been legalized in some states means that it’ll lead to strict regulations in those states.
2. Variety of Product Offerings
The Cannabis industry has the potential to generate huge revenues for states that legalize them because of the different kinds of products that it can be used for.
They have been used to make products like gummies, chocolate bars, and baked goods, but with the increase in innovation, companies are now beginning to see a business opportunity in sectors like skincare, grooming, pet care, and even beverages.
In the CBD beverage market there’s an increase in products from flavored waters to non-alcoholic cocktails and drink powders.
Another interesting fact is that the CBD gummy market is expected to have a 28% increase from 2021 to 2028, which will make it reach a value of over $12 million
3. Boost in Customer Base
For states that legalized CBD, they get a huge increase in the customer base because people don’t need to hide to get the products.
Companies are now exploring niche markets and coming up with effective ways to reach different demographics and new customer.
4. Market Growth and Revenue Predictions
This might surprise you, but with the rapid increase in the need for cannabis and the fact that it is legalized in some states, the US market alone is expected to be valued at USD 25.15 billion by 2032, which is a 15.3% increase at Compound Annual Growth Rate (CAGR) while Europe has a current valuation of 2.53 billion
The United States has recognized the importance of this market and is extremely dominating in the sector. Interestingly, the Indian hemp section of CBD is expected to have an impressive growth rate of 22% in the future because of favourable regulations for products with low THC levels
5. Distribution Channels
Before cannabis was legalized in some states, the distribution channels were secretive, but now, an offline distribution channel like the brick-and-mortar stores, dominated the market with a 52.4% business share in 2021. Users are now comfortable and confident about walking into a store to get their order.
In fact, data shows that 40% of consumers purchase CBD from dispensaries, 34% from retail stores, and 27% from online retailers.
The CBD industry is a very interesting business to tap into. Its level of innovation and changing perception has been really impressive.
There’ll come a time when businesses in this industry will need to stay agile to gain customers.
Overall, the future of CBD looks promising for businesses, users and the States.
Dr. Jason O’Donnell works at Holy Cross General Hospital. He is a General Practitioner with extensive experience in cardiology, geriatrics, adult medicine, and internal medicine. Dr. O’Donnell studied at the UCL Medical School and holds a Doctor of Medicine in London in the UK. He also completed an internal medicine internship at London Imperial College. From here he went on to complete a residency in internal medicine at St. George’s London University. He is currently practicing adult medicine, cardiology, geriatrics, and internal medicine at Holy Cross General Hospital. Before he performs any operation, he first assesses the patient’s medical goals and concerns. After the surgery, he monitors the recovery of the patient and makes adjustments to the treatment program, when necessary. Dr. O’Donnell is also a proud member of Health for Humanity where he volunteers his skills in medicine for people in need across the globe.