CBD Businesses Thriving In The US
Cannabidiol or CBD has been experiencing explosive growth in the US economy since the legalization in the country. There have been efforts by cannabis farmers to make headways in the United States. The most recent analysis suggests even more optimistic projections for the industry’s future compared to the previous report. BDS analytics recently released a report projecting a 20% higher growth rate in the industry.
Cannabis Industry Foresight By 2024
The latest projections indicate the industry could hit as large as $20 billion by 2024. The new analysis takes into account new avenues of sales that are beginning to become more substantial. While some cannabis products are commerce in dispensaries, there have been changes in the CBD market that allow expanded market access for the product.
CBD Products in General Retail
CBD products have expanded into general retail. There is currently a lot of prediction that majority of the CBD products will sell through general retail in the coming years. Since they started tracking the CBD sales in 2014, they’ve experienced even faster growth rates than other cannabis products even inside legal dispensaries. As cannabis becomes more and more integrated with our society, the speed of growth of this industry is bound to accelerate.
CBD Market Expected to Grow by a Compounded Annual Rate of 24%
The compounded annual rate of growth currently being projected by BDS analytics over the next four years for the CBD industry is a stunning 49% when you take all distribution channels into account.
“It means by 2024, the CBD industry and the THC industry together will be worth nearly $50 billion.”
Several other insights could potentially be important information included in the recent study.
More Insights into the CBD Industry
According to recent research of CBD oil and other CBD products, people around the age of 40 years old are the frequent buyers. They are older than individuals who consume THC on average. These consumers are more likely to be employed gainfully and are more likely to believe the products have genuine medical benefits than other consumers.
The study used innovative methods for data collection, considering how the industry in question is structured. Today there is still a vast majority of the commerce that takes place going on off the records. One area the company that ran the study meticulously looked at was how the dispensary versus general retail market could impact the CBD industry. The study ultimately concluded that it is likely there are more sales as CBD is available more easily through general retail. It is unlikely to dissuade customers from purchasing at dispensaries, which would have been at a dispensary anyways.
Yet, some people may not have visited a dispensary that will purchase CBD if it is available at a general store. Over the next five years, these trends might shift, and more of the industry will be taking place on the books.
Final Thought
Legalization has led to a gold rush in the cannabis industry. Right now, there are many predictions that it might grow beyond our thoughts especially when it comes federally legalized by the appropriate authority. The cannabis shows a bright path of profitable investment for potential investors.
