New Research Reveals CBD market Could Reach $20 Billion by 2024
The CBD (cannabidiol) market has been generating a lot of buzz in the media recently due to its supposedly uses which cuts across various industries from food and beverages, cosmetics to pharmaceuticals. As a result of this, there have been several projections on CBD sales in the U.S. in the coming years.
A new research conducted by BDS Analytics and Arcview Market Research, the leading cannabis researchers, CBD market is estimated to surpass $20 billion in U.S. by 2024. This forecast gives credence to the recent one made by Cowen & Co, a New York-based investment bank, which forecasts CBD sales to hit around $15 billion by year 2025.
It’s worth noting that this recent forecast considered all products sold and distributed through licensed pharmaceuticals, clinics, and the overall retail market in general, which includes grocery stores, cafes, smoke shops, and pharmacies.
Nevertheless, according to BDS Analytics and Arcview Market Research, most of the sales will come from general retail outlets rather than cannabis dispensaries. Considering the number of states that has legalized medical and recreational marijuana (33 states plus D.C for recreational use, and 10 others and D.C. for adult use), the prediction makes a lot of sense.
Also know that sales will come from other distribution channels. As a matter of fact, BDS Analytics and Arcview Market Research prognosticated a 49% growth rate annually across all distribution channels. They further expect that the CBD market when combined with THC products will create a combined total market of $45 billion by 2024.
The new research also includes the below findings:
- About 66% of consumers of hemp-derived CBD are in agreement with full federal legalization, and 90% of them agreeing that marijuana has medical benefits;
- Since 2014, there have been a fast increase in CBD product sales than overall dispensary sales and;
- Consumers of CBD products are 40 years on the average, have high education than non-consumers and are mostly employed full time.
Vice president of consumer insights at BDS Analytics, Jessica Lukas explained how the firm arrived at this their latest forecast of the CBD market. She said; “We had to look at the landscape today, and then assess and predict where the market will go. THC and CBD are very different with different functionality. Product forms that make sense and are very successful for THC do not necessarily transfer to CBD. Additionally, we had to strongly consider the interaction between the general market channels and the dispensary channel in assessing whether or not the availability of CBD oils in the general market is incremental to purchases in dispensaries, will replace dispensary purchases, and/or will drive greater penetration and acceptance of legal cannabis.”
She further stated that a major challenge in the data gathering process was estimating the size of the market by category and channel.
She added; “Most products being sold in the general market today are in untracked channels of distribution. Yet even with this problem, she is expecting many categories (food, candy, beverages, beauty, skin, etc.) will generate substantial volume across many channels of distribution. “While dispensaries and ecommerce drive the majority of cannabinoid sales today in the U.S, this shifts versus the next five years.