CBD – easy as 1-2-3. CBD for you and me.
Cannabidiol – more colloquially known as CBD is a phytocannabinoid discovered in 1940. It is one of some 113 identified cannabinoids in cannabis plants and accounts for up to 40% of the plant’s extract. In 2018, clinical research on how CBD can treat anxiety, cognition, movement disorders, and pain. Prima facie it looked to be a modern day snake oil for alternative medicine fanatics. But it isnt and people across all walks of life are swearing by it.
So much so, according to a new study by leading cannabis researchers BDS Analytics and Arcview Market Research, the collective market for CBD sales in the U.S. will surpass $20 billion by 2024.The forecast includes CBD products sold through licensed dispensaries, pharmaceuticals, and in general market retail – from cafes and smoke shops to grocery stores, pharmacies and mass merchants.
CBD equals mega do-re-mi.
Were witnessing CBD maturing from a cannabis sub-category into a full-blown industry of its own, said Roy Bingham, Co-Founder and CEO of BDS Analytics. Our growth forecast for the CBD market, across all distribution channels, predicts a compound annual growth rate of 49 percent by 2024. This is a great opportunity for all involved, but it means the road ahead will include decisions that need to be informed by the best possible data.
As major retailers continue to announce their stocking and private label development of CBD products, BDS Analytics predicts that the majority of CBD product sales will soon occur in general retail stores, rather than cannabis dispensaries, as is currently the case. Moving forward, BDS Analytics market insights indicate that the success of products is dependent on education and understanding, dosing, and consistent labeling.
BDS Analytics feels CBD is in a unique position compared to other nutraceutical or supplement ingredients for two reasons: 1) as an active ingredient in cannabis, it has a storied history of health and wellness use, and anecdotal evidence of efficacy, and 2) it is one of the few natural remedies with scientific basis for at least some of the claims being made about its curative powers. Unsurprisingly, consumers are fascinated by the perceived benefits of CBD. While BDS Analytics acknowledges consumer penetration for hemp-derived CBD products in the US is still only ~15% today, there is substantial consumer interest in Ingestibles (tinctures, pills, beverages, food) and Topicals (creams, balms, salves) formats.
CBD sales have exploded in the past several months, but theres still a long way to go when it comes to consumer, retailer, and manufacturer knowledge, said Jessica Lukas, Vice President of Consumers Insights at BDS Analytics. 56 percent of adults 21+ do not know or are confused about the differences between THC and CBD.
Tetrahydrocannabinol (THC) is a crystalline compound that is the main active ingredient of cannabis. THC is the principal psychoactive constituent of cannabis. CBD is also psychoactive; its just not intoxicating like THC.
Other report findings:
BDS Analytics predicts US sales of cannabis- and hemp-derived CBD products to surge from $1.9 billion in 2018 to $20 billion by 2024, a compound annual growth rate of 49%.
When combined with THC products, the CBD market will create a total market of $45 billion for cannabinoids by 2024.
CBD product sales in dispensaries since 2014 have grown at an even faster rate than overall sales in dispensaries.
CBD sales in dispensaries are a leading indicator of the direction of where the general market hemp-derived CBD product market is headed. Within the dispensary channel, the share of high-CBD (as opposed to high-THC) product sales has been increasing rapidly. In markets tracked by BDS Analytics GreenEdge Platform, which powers the companys retail sales tracking service, dispensary sales of CBD accounted for 11% of total sales in 2018-a considerable increase from just 5% in 2017.
66% of hemp-derived CBD consumers in the US agree with full federal legalization of cannabis, with 90% believing that marijuana has medical benefits, largely driven by the belief that it can relieve pain.
The CBD consumer profile is also notably different from that of the cannabis consumer: BDS Analytics reports that CBD consumers have nearly a 1:1 gender radio, whereas only one-third of cannabis consumers are female.
CBD consumers are an average age of 40, are of higher education, and are more likely than non-consumers to be employed full time.
