CBD Growth Explodes; Now Being Used By 1 in 7 Americans
Despite the fact that CBD isn’t being regulated on a federal level, more Americans are convinced of the cannabinoid’s powerful therapeutic properties – and spending money on it.
A recent Gallup poll just revealed that 1 in every 7 Americans is using CBD in one form or another, mostly for medical purposes. The poll involved surveying over 2,500 adults over the phone, which took place from June 19th to July 12. The results demonstrate just how popular CBD is becoming, and its growth isn’t stopping any time soon.
Most of it is due to the legalization of the 2018 Farm Bill last December, which makes hemp-derived CBD finally legal.
Interestingly, the poll found that young adults in the West are the most likely to consume CBD, though people from all kinds of demographics are already consuming it. It also showed that 1 in 10 people aged 65 and up already use CBD.
The poll also asked people about the reasons behind their CBD consumption, and found that a majority of patients are taking it for therapeutic purposes. Out of the participants, 40% reported using CBD for pain, while 20% turn to it for anxiety, 11% to treat sleep problems, and the others use it for arthritis, headaches, and stress. There were also cases where some respondents reported using CBD for multiple reasons.
Therapeutic cannabis use made up 90% of the feedback, and 5% reported using CBD recreationally.
Hemp-derived CBD can now be found in almost everything from food and drink to skin creams and ointments.
CBD Market Seen To Grow To $20 Billion In 2024
There’s nowhere to go but up, for the cannabidiol industry at least.
The latest forecast from BDS Analytics and Arcview Market Research, leaders in cannabis research, states that US CBD sales will exceed $20 billion in 2024.
The projections take into consideration items that have been sold through retail outlets including pharmaceuticals and licensed dispensaries, as well as smoke shops, cafes, and groceries. But according to BDS Analytics, most CBD sales will come from general retail shops and not dispensaries.
However, there will also be other important channels that will come into play. BDS Analytics projects a 49% compound annual growth rate by 2024, to be seen in all distribution channels. They also forecast that the CBD and THC market together will spawn a $45 billion market in 2024.
The report also has interesting findings, such as the fact that product sales of CBD from dispensaries have grown faster than overall dispensary sales since 2014. Additionally, 66% of hemp-derived CBD users in the United States think that federally legalizing cannabis completely is the right way to go, and 90% agree that cannabis does indeed have medicinal properties.
The average age of CBD consumers is currently at 40, and they tend to have higher education levels and are likely to be employed full-time compared to non-consumers.
“We had to look at the landscape today, and then assess and predict where the market will go,” explains Jessica Lukas, VP of consumer insights at BDS Analytics. “THC and CBD are very different with different functionality. Product forms that make sense and are very successful for THC do not necessarily transfer to CBD. Additionally, we had to strongly consider the interaction between the general market channels and the dispensary channel in assessing whether or not the availability of CBD products in the general market is incremental to purchases in dispensaries, will replace dispensary purchases, and/or will drive greater penetration and acceptance of legal cannabis,” she tells Forbes.
“Most products being sold in the general market today are in untracked channels of distribution,” she adds. Despite this, Lukas says that several categories including food, dessert, skincare, and drinks will contribute substantially to distribution channels. “While dispensaries and ecommerce drive the majority of cannabinoid sales today in the US, this shift versus the next five years,” Lukas says.
“We’re witnessing CBD maturing from a cannabis sub-category into a full-blown industry of its own,” adds BDS Analytics co-founder and CEO Roy Bingham. “Our growth forecast for the CBD market, across all distribution channels, predicts a compound annual growth rate of 49% by 2024. This is a great opportunity for all involved, but it means the road ahead will include decisions that need to be informed by the best possible data.”
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