Experts have predicted a prosperous future for the cannabis market in 2019. That year, CBD exploded in public interest and booming sales. As a result, the industry grew by 133% compared to 2018. Assuming the exponential CBD market growth, the industry was predicted to reach $24 billion in sales by 2023. New brands were entering the market, while the existing companies were strengthening their presence.
Yet, everything changed when the pandemic started. Despite being a health supplement that was supposed to help people feel better during uncertain times, CBD experienced the detrimental effects of the lockdown due to lost jobs and inability to pay for it. But what’s happening to the CBD industry now? Let’s find it out.
What is Happening To the CBD Market in 2021?
Despite the year 2020 being a powerful punch in the face for the CBD industry, it shows extreme resilience and has already begun to recover. The cannabis industry growth has recently reached 16% compared to 2020. CBD brands started investing more time and money in e-commerce, promoting their products via social media, email campaigns, blogs, online stores, etc.
Plus, the COVID-19 pandemic seems to loosen its deadly grip: mass vaccinations and federal financing helped the US economy grow by 6.4% in April 2021. So the CBD market started to grow again after a significant crisis in 2020. But how does it evolve in 2021? Read further to find this out.
New CBD Products Are Emerging
More and more CBD products keep emerging today. Thus, CBD brands offer new health supplements containing many active ingredients alongside CBD. These are sleep aid products with CBD & Melatonin, anti-inflammatory products containing CBD & Curcumin, products for fat loss containing CBD and L-carnitine, etc.
Product diversification allows CBD companies to upscale their businesses and enter new market segments. Thus, CBD edibles and beverages are becoming more popular in 2021. This trend emerged in 2020 and continues to intensify today. A study found that more people prefer to drink CBD-infused drinks.
Most importantly, this segment has a huge growth potential since people are still discovering the benefits of CBD-infused beverages. Furthermore, consumer awareness in this segment is drastically increasing today: people search for the best CBD coffee, water, tea, etc.
CBD Merges with the Beauty Industry
A wide range of CBD health benefits allows CBD brands to enter the beauty and wellness industries. For example, the beauty market is adopting CBD as a component for skin care products. Thus, more people opt for CBD balms, creams, and lotions to treat skin conditions today.
CBD Consumer Awareness Is Increasing
What do Americans think of CBD in 2021? Most people no longer consider CBD a harmful substance believing recreational cannabis must be sold freely across all states. Most importantly, over 90% of Americans think cannabis and CBD products must be legal for medical use.
Still, there is a gap in CBD knowledge among US consumers. Some people still believe that CBD can get you high, which is scientifically impossible: cannabidiol doesn’t have psychoactive properties. For instance, 17% of consumers are afraid of using CBD products because of their (non-existent) psychoactive effects. Also, 18% of consumers avoid using CBD due to a lack of knowledge. Some people also think CBD doesn’t work at all.
But at the end of the day, 68% of Americans consider that CBD and cannabis products must be legal for both medical and recreational use.
Top Predictions for CBD Market
What will happen to the CBD industry in the near future? Will it continue growing at a natural pace? Let’s find this out.
We Will See More CBD Products Emerging
We have CBD chocolate, gummies, capsules, CBD-infused drinks and snacks, as well as CBD skin care products, but more and more CBD products are yet to come.
The CBD industry is in its infancy and will certainly evolve further. Cannabidiol still requires a lot of research, and scientists will eventually find more medical applications for this supplement. Consequently, new CBD discoveries will propel CBD brands to create new product lines.
There Will Be More Steps Towards CBD Legalization
CBD products remain in the gray area, but this will likely change in the near future. Today, the public consumes CBD, benefits from its properties, and believes cannabidiol and help-derived products must be fully legalized in all states.
Furthermore, scientific communities intensively research CBD properties. So far, most scientists consider this supplement a safe and potentially efficient treatment for multiple conditions.
Finally, democrats reintroduced the Marijuana Opportunity, Reinvestment, and Expungement Act (MORE Act), aiming to make cannabis more accessible in general. So the government will eventually develop more regulatory mechanisms to decriminalize the CBD industry.
CBD Market Will Continue Growing
Now, there are no significant threats or challenges that could potentially disrupt the CBD industry. Recent cannabis market research predicts the market to grow by 20% in five years. Consequently, it will eventually grow into a more powerful industry.
The Bottom Line
The CBD industry is recovering from the 2020 crisis and is predicted to grow exponentially. By the first quarter of 2021, there is a noticeable growth in CBD sales, awareness, and product diversity. Most importantly, the US government seems to be ready to take further steps towards complete CBD decriminalization. As a result, the CBD market is flourishing in 2021 and will keep developing for years to come.