13 May How Big is the CBD Market?
The CBD market is one of the fastest growing industries in the world. Consumer demand increases daily. The variety of CBD delivery methods increases with creativity and innovation. It’s an industry that truly does have something for everyone.
Included in this massive CBD market is the pet sector. This part of the market is also growing by impressive numbers.
The industry is already huge, and it’s only expected to get bigger. How big is the CBD market expected to get? We’ve put together data from the latest projections to put into perspective just how big this industry is expected to be within the next few years.
Current CBD Market Value
It’s estimated that the current value of the CBD market is $1 billion. Cowen & Co. estimates that 7% of Americans are already using CBD. That number, however, is likely much higher. The data to determine this percentage was calculated using survey data from 2,500 American adults.
It’s been estimated, also by Cowen, that the number of adults using CBD by 2025 could reach 10%, but, if the survey were bigger, it’d likely show that many Americans using CBD now – or perhaps more.
If 10% of the American adult population used CBD, that would come out to be around 25 million people.
Most Popular Current CBD Products
Some of the oldest products on the CBD market remain the most popular. Roughly 44% of current CBD users prefer tinctures. Topicals is the next most popular option at 26%. Capsules are one of the original products on the CBD market and about 22% of the survey’s respondents use them.
When it comes to newer CBD products, infused beverages are quite popular at about 19%.
Although CBD vape was not listed in this survey, it’s likely that it wasn’t included as a survey question. CBD vape is quite popular – likely somewhere between tinctures and topicals.
CBD Usage by Age Group
You might think that CBD is just for the younger crowd, but that’s not true. Yes, more younger people are using CBD, but the number of people using CBD that are above 40 is quickly rising. The elder generations don’t necessarily want to be high but want to benefit from using cannabinoids, so CBD is their choice.
From the Cowen survey, it’s estimated that about 9% of those currently using CBD are in the 18-35 age group. Next was the 45-55 age group at 6.2% and for those above age 55, 3.7% they currently use CBD.
CBD Market Growth from 2018 until Now (2019)
In 2018, the CBD market had a value of about $390 million. Globally, the CBD market is worth about $1 billion today. That marks an industry growing so fast that numbers can barely keep up.
The legalization of hemp in the 2018 Farm Bill is aiding the continuous growth this industry is seeing. Now that the restrictions on hemp have been lifted and it’s been removed from the Controlled Substances Act, hemp-derived CBD will keep the spotlight for years to come. It’s such a versatile plant – having over 25,000 uses, that we don’t even know the full potential of the CBD market at this time.
What Will the CBD Market be Worth in 3 Years?
The hemp CBD market is projected to be worth $22 billion globally by 2022. The Brightfield Group made this projection prior to the Farm Bill being signed into law. What this means is that the hemp CBD market will be worth more than the entire cannabis market.
There isn’t another industry that increases in value this fast. However, if cannabis were to become legal federally – it’d give CBD a run for its money, if not surpass it.
The Future of CBD
There are no signs of the CBD market’s value slowing down. Forbes also used data from the Cowen report to determine that the value of this market would be $16 billion by 2025. From all other projections, it’ll surpass $16-billion within the next couple of years.
The world has turned its attention to CBD. Innovative products and new delivery methods are coming onto the market faster than even a year ago. How does this happen? Science is allowing more answers to be known about CBD’s efficacy. This gives entrepreneurs and CBD industry experts the ability to experiment with different applications.
So, this is how CBD coffee, topicals, makeup, sweeteners and food items are all introduced to the market. Many people want to use CBD but they may not want to take a capsule or tincture, so products are created to help people with any kind of preference. Some CBD users choose multiple delivery methods – and that’s okay.
There is a certain delivery method available for every situation.
Although hemp is now legal in the U.S., there are still a handful of states that deem CBD illegal regardless of which plant it comes from.
What do Projections Mean?
Projections are a way to gauge the growth of an industry or trend over time based upon current market values. Those values are then explored to determine how much the demand or products in a certain industry will grow over time. Since CBD is not yet legal everywhere, the true future value of the market is really unknown.
Statista’s data says that the market will only be worth about $1.8 billion by 2022.That pretty low. They also estimate that it’ll increase to $23 billion by 2025 – even that seems a bit low. It’s hard to make accurate projections for an industry like this.
Look at the U.S. cannabis market – every state that has made projections for its potential sales and tax revenue has been far too low. The same could be likely for the CBD market too.
What about the Pet CBD Market?
Pet CBD products are getting more attention. Yes, there is a market projection for this sector of the industry too. It’s estimated that this sector alone could be worth $125 million in the next 3 years.
These are some of the CBD pet products available on the market today:
- Pet CBD tinctures
- Pet CBD treats
- Pet CBD food
- Pet CBD topicals
- Pet CBD shampoos
As more applications for CBD for pets are discovered, the number of delivery methods for animals is also expected to increase.
They say that the sky is the limit when it comes to the value of something. But, for CBD market value – we don’t know what that “sky” is yet, so it’s hard to put actual numbers on just how valuable this industry could be in the next few years. All we know for sure is – CBD isn’t going anywhere anytime soon.