Currently, the CBD market in the USA alone is estimated to be worth around $7 billion dollars, this is an increase from 2014 where the figures stood around $3.4 billion. It is very rare that any type of market sees this level of growth, especially when this number is confined to just one country.
Figures released in Europe also show a market shift towards adopting CBD products, the previously outlawed substance is now a word on every investors lips with Europe now holding 31% of the Global market share with a market estimated to be worth $416 million.
Expected Market Growth In Europe
Given the figures for the UK & European market for Cannabis and cannabis related products currently stands at a fraction of that of the United States, some may jump to the conclusion that the European market share wont increase much past this point. However, this is not the case. The EU are expected to increase hemp cultivation by 30% year on year moving forward. This data has come off the back of analysing current agricultural usage across EU member states, and land use for hemp increased by 40% between 2015 and 2018 with the Baltic states leading the way in market innovation for CBD products. The European market is expected to be worth a 1.7 Billion by the end of 2023. During 2020, the market is expected to continue growing at a minimum of 40%, but this may increase if more strains are legalised, currently the EU will only permit 40 types of cannabis crop.
Global Growth Trends
Generating exact global figures is a challenge due to currency fluctuations, trades, tariffs and other obstacles, but CAGR have provided some figures that can shed some light on how the cannabis industry is set to move in 2020 and beyond. It is thought that the currently global industry is growing at 125% year on year with the figure for the close of 2019 being a global market value of $129 billion. This, as aforementioned will increase in 2020, with early movers and market innovators reaping the benefits of this new wellness industry golden product.
Why Is The CBD Market Consistently Growing?
Previously, Cannabis and cannabis related products have always been viewed as no more than a recreational drug that gets people high. This stigma goes all the way back to the 1970’s when research only focused on the psychoactive component of cannabis THC.
But throughout the years the anecdotal evidence of cannabis use become so loud, researchers had no choice but to evaluate its medicinal effects and shifted their attention the compound found in all cannabis stevia, CBD.
CBD has been related to an array of health benefits, some of which we are only just beginning to understand and with the increase of cultivation and production technology, companies are able to isolate the beneficial compound and allow users to take this without the THC component. Through removing the THC, it has opened up the market to users who would previously never consider cannabis as anything other than an illicit substance. Furthermore, through innovation in how CBD can be taken, the market has become so widely diversified that anyone can now take and reap the benefits of including CBD in their daily lives.
According to Quantum Marketer; The CBD market is not going to slow down or diminish any time soon and more and more organisations and businesses are getting on board and cultivating and producing their own products. Cultivation and product innovation is the driving force behind the exceptional market growth, which will continue growing through 2020 and beyond.