How Much is the CBD Industry Worth?

When the 2018 Farm Bill was signed, the CBD industry exploded. The act contained wording that effectively made the possession of any hemp product legal Since CBD is predominantly extracted from hemp, the CBD industry capitalized on this wording by getting out ahead of the story, declaring it a win for their products and then flooding the market with them before the law could say otherwise.

The result is that now most states are changing old laws from their books and making way for CBD to be used without legal repercussions in any way. As more states move toward legalizing medical marijuana, CBD is a minnow in the stream to law enforcement, so the Farm Bill seems to have opened the door and paved the way for the industry to expand rapidly.

Where the market is now and where it is headed  are both very excited to both users of CBD oil and investors. The manufacturers are poised to make record-breaking profits. In fact, some companies who went public on the stock markets are already seeing increases in stock by as much as 3000%.

So, what the industry is worth now is nothing at all compared to its potential worth. Let’s take a look at current numbers and projections based on the input of industry experts from CBD industry and Wall Street.

Numbers

As  long as 2 years ago, the CBD industry was projected to be worth approximately $2B by 2022. That’s a heft number and many saw this is a growth industry, based on these numbers alone. By the middle of 2017, The CBD industry was worth approximately $367 million and had already experienced as much as 40% growth. These numbers, in and of themselves, were fantastic returns on investment (ROI) for those who invest and for the owners of the companies who were betting their lives on the CBD industry.

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In December of 2018, the Farm Bill was signed as an updated version of the original bill from 2014. The wording in this new bill has blown the industry so far ahead of initial projections that the comparison is now apples to oranges. In 2017, before the Farm Bill, experts made predictions, based on information available at that time, that by 2022 the industry would be worth approximately $650 million. Now, with the new information and market growth since that bill signing, the industry is expect to be worth $22 BILLION by 2022. That is more than 33X the initial projections.

Remember that the industry had already seen a 40% growth from inception. These new projections have investors scrambling to buy stock and companies setting themselves up to IPO and start selling their stock as soon as possible, to ensure maximum growth potential. They will need to expand product lines and total output of products. The companies that don’t grow rapidly with this industry will be very much at risk in the beginning because it is highly competitive right now. Like horses, bunched together after having just left the shoot, all scrambling to take the lead in a race that is moving and changing at lightning speed, some will be left in the back of the pack.

For investors, this means doing a little homework and choosing the companies that seem to be best set for success in the coming years. Overall, the CBD industry is going to be a great investment.

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Life-Changing In So Many Ways

CBD has changed the lives of many people by giving them relief from symptoms of chronic illness, extreme pain, and debilitating diseases. CBD is the phytocompound also called cannabidiol.

 CBD is a cannabinoid, as is THC, but CBD will not interact with your brain and will not make you high. CBD is one of many cannabinoids in hemp that has dramatic ability to interact with the body’s Endocannabinoid System (ECS) to help regulate mood, immunity, suppress pain, stop seizures and much more.

CBD has proven itself worthy enough for the FDA to approve a drug called Epidiolex for controlling seizure activity in people diagnosed with epilepsy who have shown no response to other medications. This was also a major boone to the industry.

CBD is natural, has no known negative side-effects that are long-term. Insignificant side-effects are rare and include diarrhea, headache, and stomach cramps. These are typically associated with taking too much and will go away as soon as dosage is lowered.

Humans, both adult and children, as well as animals are known to have an ECS. This means that even your dog which is suffering from arthritis pain can benefit from and be given CBD oil. For example, shop from Innovet pet CBD oil for dogs to discover products made especially for them. This is also expansion of the market that will lead to more sales.

Some experts believe that only 1% of the total market has even been scraped by CBD so far. One of the fastest growing groups using CBD are seniors who are experiencing aches and pains from aging and chronic conditions that come with age.

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.

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