Predicted to become a 47 Billion dollar industry by 2028, the CBD industry is on course to become a major player in the United States. Let’s take a look at this budding industry and see if there is a place for you in it. Who knows, you might just be the face of the next best CBD brand in the USA.
What is CBD?
CBD, or cannabidiol, is a compound found in cannabis plants that stimulates different regulatory processes in the body, giving CBD the ability to lower inflammation, reduce pain, and ease muscle convulsions, to name a few.
There are several hundred active compounds in cannabis that produce similar effects. This leads to the majority of CBD products containing all those active ingredients to improve potency. This includes the active chemical that gives marijuana plants their high, tetrahydrocannabinol (THC).
However, CBD is traditionally derived from hemp plants. Cousins to marijuana, these cannabis plants produce trace qualities of THC, unable to cause intoxication. These CBD products are labeled full spectrum.
There are CBD products that strictly contain CBD, known as CBD isolates. While approved by the FDA, most people find the benefits of this form mild at best.
CBD Regulations in the U.S.
Regulations on CBD products vary from state to state and sometimes even from city to city. This can make a CBD-infused drink legal in one state, while illegal in the next. And that’s if the state even allows CBD use of any kind. To better understand, one has to look at how CBD was federally legalized.
In 2018, in the U.S., The Farm Bill, formally known as the Agriculture Improvement Act of 2018, legalized CBD products when derived from cannabis plants containing no more than 0.3% THC. Officially labeled industrial hemp, products from these plants are legal to sell and use. However, it’s completely up to a state’s discretion whether this happens or not.
As of 2022, only three states, Idaho, South Dakota, and Nevada, consider CBD an illegal substance.
How Common is CBD Use
With CBD usage increasing every year, it’s difficult to pinpoint just how many people are using it. Multiple studies and surveys have found at least one-third of U.S. adults have used CBD, with most Americans familiar with the therapeutic aid. Likewise, it’s hard to know just how much CBD people are using since how many mg in a drop of CBD oil varies from brand to brand.
Who’s Using CBD
Surveys show that women are slightly more likely to use CBD regularly, with millennials making up the greatest percentage of users — though Gen X and Gen Z aren’t far behind.
Vitaleaf Naturals and their sister company Innovet Pet, have found that the majority of people giving CBD to their pets are using it themselves. And they have found that if you use CBD, you are significantly more likely to give it to your pet.
The overall majority of people who take CBD say they use it to help manage their anxiety. Chronic muscle pain, arthritic and joint pain, mood disorders, insomnia, and epilepsy are the other main reasons given for CBD use.
Oil CBD is the most popular form taken but far from the only, leading to brands like Naturalgrownrx to create variations with twists.
What The CBD Industry Looks Like
The CBD industry is a multi-billion dollar industry expected to reach USD 47.22 billion by 2028. As well, the global CBD pet market is expected to reach USD 4.79 billion by 2028 at a compound annual growth rate of 58.9% from 2021.
While the CBD industry had humble and wild west beginnings, even now, let alone in a few years, big business is swooping-in, hoping to make it theirs. And unlike many industries, the pandemic is not slowing down CBD sales.
A young market with a customer base that’s fairly young, tech-savvy, and health-conscious, the CBD industry is a model industry in the making.
It’s safe to say that not only is CBD here to stay, but it’s also here to dominate. Despite hesitation from lawmakers to act on the legal confusion over CBD, the industry has and will continue to be one of the fastest-growing industries, not only in the U.S. but in many major countries.
There is a lot of competition in the CBD industry, and this will only increase now as the storm over CBD’s legality and newness are mostly over. Those entering the industry will need to be savvy. Small and mid-size businesses, in particular, are going to need to figure out how they are going to manage against big names like Sephora and Urban Outfitters.
For those that are hungry though, the CBD industry can be very rewarding.