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CBD Market Forecast for 2021 – Will the Industry Continue To Grow in Popularity?

If you look back over the last years, a hot topic has kept repeating, CBD or cannabidiol. It was the one subject that dominated headlines in magazines from various industries and had an extreme impact on economic markets globally. CBD is a cannabis by-product that grew in popularity recently as a holistic remedy with multiple therapeutic benefits. Many people have made CBD part of their lifestyle, and with medical evidence to prove its effects, some therapists and doctors also recommend it as a reliable solution for physical and medical conditions.

Also Read | How Chow420 is Revolutionizing the CBD Market with Automated Online Compliance

In 2018, the CBD market was evaluated to $4,6 billion, to get to $7.1 billion in 2019, and reach over $9 billion this year. As its popularity increases among experts and individuals, everyone is curious about what the future economic environment prepares for the product.

What are the predictions for the post-pandemic era?

CBD has become a household name everyone talks about. Whether for helping people improve their mental health or treating physical ailments, it’s always a topic that raises brows.

Sales will continue to increase

No one doubts cannabidiol sales will continue to increase in 2021 and beyond. New Frontier Data released a prediction in 2018 that announced that the CBD market would triple its value by 2022. They also revealed that they expect the market to get to $24 billion by 2024. In 2018 when the Congress passed the Farm Bill, the market was worth $390 million. At the end of 2020, Global News Wire stated that the market reached the $967 million value, and the trend doesn’t show a change in direction.

And judging by how it grew in popularity since Congress legalized its use, it’s safe to predict that the sales will increase in the following years. The market has already registered a boom in the last years with numbers spiking every year.

For some, the numbers may be shocking, but considering the effects, the pandemic had on mental health, and people’s growing need for natural treatments to alleviate depression, stress, and anxiety effects, it’s entirely possible the industry to exceed them.

The product range will diversify

At the moment, the market provides a complex range of CBD products that includes from oils to edibles, creams, lotions and tinctures. It’s fascinating to browse an online store and check the various options you can choose from. CBD comes in many forms to meet the various needs of users. Even if the possibilities are diverse, there is certainly room to expand them. In 2021 we expect the range to diversify even more and products like Sunday Scaries to grow even more in popularity. Bands worldwide are experimenting with this ingredient and try to include it in as many products as possible because they want to benefit from its advantages. Some brands are implementing nanotechnology in cannabidiol to boost its effectiveness and duration.
Besides, more and more industries are opening up to CBD and its benefits. They search for ways to add it to the other ingredients they use and take advantage of its popularity. The worldwide markets are brimming with supplements and cosmetics that include it. And the number of products that contain it will continue to expand to match the growing demand.

The FDA might soften the stance against it

FDA, or the Food and Drug Authority, the institution that regulates and approves the products that can be sold on the market, can boost the CBD’s popularity on the market. The FDA states that all products that include cannabidiol fall under Schedule I substances that require approval from the agency before being introduced on the market. At the moment, it offered the green light to only two CBD-based drugs, Sativez, and Epidiolez, and put them in the Schedule V of Controlled substances Act of the US Drug Enforcement Administration.

This action has been perceived as welcoming news for the CBD market because there is hope that the FDA will include more products in the Schedule V and maybe even unscheduled some of them.

The number of dispensaries will grow

At present people can purchase CBD products from dispensaries and online stores. As its popularity continues to grow, we expect more dispensaries to open to meet the market’s demand. Dispensaries are authorized to retail storefronts that sell cannabinoid-based products to clients. Even if they have to follow strict regulations, their number is quickly increasing to serve a high number of customers.

More and more entrepreneurs will invest in the CBD market and apply for licenses to open stores. Relaxed regulations make it easier for companies to set off the ground and reach their target audience.

Why does everyone expect the industry to continue to make waves in the following years?

Advanced research

CBD is legal in the USA because it doesn’t contain THC the compound that triggers psychedelic effects. Even if it has been on the market for a short period, scientists and researchers are diving into research and studies to prove its effects. Now that it’s legal to sell cannabinoid-based products, we’ve witnessed some promising studies emerge on the effects of CBD. Because the product receives more scientific backing, nothing can stop its surge.

New products

The first thing you learn about CBD is that it’s one of the most versatile natural remedies on the market. Over the last years, we have seen companies including it in cosmetics, food and beverages. At this point, the possibilities seem endless, and everyone expects the industry to uncover other new products.

At present, some companies are researching for ways to blend CBD with other active compounds like turmeric (to improve digestive problems), chamomile (to fight insomnia), and milk goat (to help with skin dryness). Cannabidiol has a limitless potential to blend with other natural ingredients.

Awareness and education

Even if its popularity grew overnight, there’s no denying that the subject still requires research to untap its effects and benefits. The awareness and education surrounding CBD-based products will grow as studies break down the stigma attached to the compound extracted from the cannabis plant.
There’s no doubt that CBD has a night future ahead.