The recent approval of the 2018 Farm Bill will pave the way for the hemp industry to be fully legal, which will bring hemp-derived CBD products into the market.
CBD or cannabidiol is one of the components derived from the cannabis plant that’s found in both hemp and marijuana. Despite its grey legal status, it’s used widely in treating a wide variety of conditions, including anxiety, depression, chronic pain, insomnia, PMS, arthritis, and the list goes on. The CBD market has predominantly grown and is predicted to become a billion dollar industry in only a few years. Soon, the market will take over the world. In fact, some companies are already sending their products to several countries around the world.
More Opportunities for Industry Players
With the legalization of hemp CBD being imminent, the products are expected to make their way towards the shelves of the country’s biggest retailers very soon. This will open more opportunities for various players in the industry, including food, beverage, health and beauty, supplements, and more! According to a study done by the Brightfield Group, the CBD market is expected to reach $22 billion in a few years, overtaking the market for recreational marijuana.
Unlike marijuana, hemp contains only a small amount of THC. This is the psychoactive chemical that’s fully responsible for the feeling of high that marijuana users experience. Hemp contains less than 0.3% of THC, which will not trigger any psychoactive effects. Therefore, it’s safe to consume and can be added to food products, supplements, beverages, and medicines without putting the user in danger.
Expect CBD Products on Store Shelves
The 2018 Farm Bill has given a legal entry point for big companies to get their hands in the thriving hemp industry in the US, which is also what happened in Canada when the country finally legalized recreational cannabis. In fact, there are rumors going on that Coca-Cola will soon get involved although the company vehemently denied and expressed their disinterest in cannabis. However, they admitted that they’re closely watching the popularity of non-psychoactive CBD used as an ingredient in beverages.
It makes real sense for alcohol and tobacco companies to get into the marijuana industry, but not for other companies, such as food, beauty, and skincare, because it may be best for them to put their focus on the CBD market. This aligns very well with the global trends in these industries as they’re looking to capitalize on other areas in the industry.
CBD Will Not Be Restricted to Any State
Indeed, there’s a lot of potential in the global marijuana industry but it’s going to be a really long game. The CBD might be able to scale much faster than cannabis, both locally and globally.
In the United States, it’s a bit challenging to come up with a scalable business model for the cannabis industry. If you want to distribute cannabis gummy in Washington, you can only produce and process the product within the state. You must be licensed by the state and you need to comply with all the regulations involved, from seed to sale, while also burdened with a significant amount of tax.