CBD has finally hit the mainstream, and a recent report shows that it could be worth as much as 20 billion by the year 2020. While the CBD boom was confined to a few products at first, we’re seeing it being applied in the world of cosmetics, pharmaceuticals and health, and beverages. Celebrities are also getting involved with various Hollywood personalities tapping into the market as well. CBD is also getting more recognition in the medical world, and we are just beginning to unlock its therapeutic properties.
Forecasts are Even Better than Before
What’s notable about this study is that it surpasses the forecast that was previously made by investment firm Cowen & Co which estimated that the market would be worth 15 billion by the year 2025. This new forecast, which was made by Arcview Market Research and BDS Analytics, took into account products sold through the retail market, pharmaceuticals, and dispensaries.
One of the things BDS Analytics stated was that the bulk of the sales will not come from dispensaries anymore but from retail stores. And this is easily understandable when we look at the provisions of the 2018 Farm Bill which legalized the use of industrial hemp for CBD products and partnerships with major companies like CVS adding legitimacy to the product.
It’s Not Too Late to Cash In
There is still plenty of space on the CBD market for new products, and plenty of options for investors who’d want to invest in the market in one shape of form. For one, hemp farming is on the rise and a good way to invest in a crop that is great not only for CBD production but for tons of different applications too.
But for those who would like to get in the retail space, the lowest point of entry is transforming or using CBD extracts to create products.
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Things to Know Before Getting in the Business
However, before you start, investors should know the basic rules and regulations governing the industry. For one, you have to make sure that any extract you buy comes from industrial hemp and has less than 0.3% of THC. This why working with the supplier is important.
When possible, it’s always better to go with suppliers who grow their own product. Companies like Cope CBD, for instance, are one of the biggest industrial hemp producers in Colorado and can prove the provenance of their product. The supplier should also be able to provide you with a lab analysis and give you a rundown of the extraction process. Buying from unknown and unreliable suppliers could open you up to legal action, so make sure that you do your due diligence on any supplier and consider visiting their facilities if possible.
The CBD industry is set to be one of the fastest growing in the country, and it gives a chance to investors to capitalize on this trend in many ways. If you’re intrigued by the product, you should consider looking into the market and stay informed about the latest developments.