Did you know the US CBD sales hit $4.6 billion USD in 2020? As CBD product sales continue to rise, a new forecast is predicting that the market will reach up to $19.5 billion in the year 2025. This prediction includes a compound annual growth rate of nearly 37% over that period. Unfortunately, there is a catch. This prediction all depends on whether the U.S. Food and Drug Administration will finally approve CBD as a legal additive in 2022. BDSA, the top cannabis market research firm, who has made this prediction believes the FDA will do so. This would be great news for the industry considering there are currently no FDA-approved drug products that contain CBD. Here’s to crossing our fingers in hopes that Congress has the authority to address the issue. There is current legislation aiming to do just that, such as the Safe Banking Act of 2021, the Hemp and Hemp-Derived CBD Consumer Protection and Market Stabilization Act of 2021 and the Hemp Access and Consumer Safety Act. This could pave the way for the FDA to market CBD as a dietary supplement.
Users who are in need of the medicinal benefits for pain, inflammation, sleep, stress/anxiety, etc will continue to drive the boom. If and when this prediction comes true, there is going to be a large interest from big box retail stores to even more of the big names wanting in on the industry. This interest could drive the cost of raw materials up as well. Hopefully, by doing so, this will result in more public education about cannabinoids creating product quality and safety that consumers can trust.
The “BDSA’s 2025 $19.5 billion CBD sales forecast, mainstream retail, which includes grocery, drug, ecommerce, natural/vitamin, pet/vet and beauty channels, will seize a lion’s share of that figure, clocking in at $14.92 billion or 77%. The pharmaceutical channel is estimated to take up a 12% of that pie at $2.36 billion. And, dispensaries will grab 11% at $2.22 billion. Currently, the cannabis dispensary channel is the only legal channel for CBD-infused ingestibles” ( Forbes). In addition, there are various other key findings and current trends to include in this prediction. BDSA claims “Nearly 50% of all adults are now consuming cannabis in fully legal states”. With the cannabis consumer population continuing to grow, the BDSA is predicting this momentum will continue on into the future. “According to the cannabis data researcher, only 8% of adults oppose cannabis legalization, and even the most mature legal markets in the U.S. are continuing to expand. The percentage of adults consuming cannabis across all fully legal cannabis states increased by 11% from the first quarter of 2018 to the first quarter in 2021. Among U.S. cannabis consumers, there is a relatively even split between recent and long-term adopters. About 50% have been using for one to two years (with 43% consuming for more than two years). There is strong support for cannabis legalization across fully legal states, with 84% supporting some form of legalization and 56% supporting full legalization. Medical factors and education are some of the highest-ranked reasons for potentially becoming consumers among those who would consider using cannabis in the future” (Forbes).