Legal cannabis is a fast-growing industry and attracting a lot of investors, including several celebrities, because the $1 billion CBD market is in the middle of a boom. As Wall Street experts can foresee the boom to continue, in the next five years, the industry could reach $16 billion, which raises great hope for both entrepreneurs and investors. Some celebrities are not only investing in CBD companies that market various CBD products like a tincture, oils, gum, vape, candies, and chocolates, but some are also keen to take to cannabis growing. The high compounded growth, which could be as high as 24% during the same period as predicted in some market researches, is the reason for surging stock prices of cannabis industries.
CBD is the next big thing to Wall Street
Cannabidiol or CBD is a cannabinoid like marijuana but without any psychoactive properties and a host of perceived health benefits. However, the FDA or Food and Drug Administration admit only a few advantages in the long list furnished by CBD manufacturers, but that does not undermine the business prospects. This does not deter the public at large who has a lot of faith in the wide-ranging health benefits of CBD regardless of what the FDA admits. From pain management and relief to relieving anxiety and stress and addressing metabolic issues that aid sleep and even help fight cancer, people believe in the powers of CBD as testing continues to establish many of the claims made so far. According to a report prepared by the Brightfield Group, CBD sales in the US alone in 2018 were $591 million, and by 2024 it should reach the $22 billion mark.
The impact of the Farm Bill
The Farm Bill passed in 2018 that became law in December and legalized the production of industrial hemp, which resulted in the spike in sales. It became much easier to harvest Hemp than cannabis, and the cannabidiol derived from hemp either does not have any THC or below the legal limit of 0.3%. The absence of THC in CBD is a reason for its legalization because it does not give high. Hemp plant will be the primary source for CBD in the coming years, and a few of the major Canadian cannabis growers have grand plans of entering the US market.
Big names hold good promise
Indeed, the market holds a lot of hope for CBD companies like https://envyhemp.com. The competition could also be very intense with several listed companies like Canopy Growth, Hexo, and Tilray throwing their hats in the ring. All companies want to take advantage of the high sales growth of the CBD market, but the new entrants to the market could face an uphill task as established players like CV Sciences and Charlotte’s Web have their heels dug in deep in the CBD market.
Currently, 2/3rd of the CBD sales occur in dispensaries. Still, by 2024 the sales network will spread across the general stores, including gas station convenience stores, which will account for 70% of all CBD spending. This leaves little to doubt that existing CBD companies can hope a lot of good things to happen in the next five years.