As a medicinal product, CBD is increasingly expanding its position in the alternative and more traditional wellness markets. Several trends suggest continued growth in an already lucrative market; the global CBD market is estimated at $ 9.3 billion in 2020, and the forecast puts this figure at a whopping $ 23.6 billion by 2025.
With a bright future ahead, in this article we take a look at what the future holds for CBD, examining aspects from medical administration to global regulatory models.
Thanks in advance to the GREENHAUS team for their help and assistance in compiling the data for this guide.
CBD – what is it?
CBD stands for cannabidiol and is one of the main chemical components of the Cannabis Sativa plant, L. Many compounds in Cannabis have been studied so far, including THC, CBD, CBN and CBC; of these, CBD is the one that shows the most promising results when it comes to therapeutic applications.
Areas where these positive results have been found include relaxation, relief of inflammation, and relief of pain.
How is it taken?
While most public impressions of Cannabis use tend to include some form of smoking, CBD can be administered in a number of different therapeutically appropriate ways. One of the most common at present is CBD oil. CBD is easy to pack and market in oil form, making it a practical and commercial option.
While subcultural associations are still common with cannabis use in general, marketing efforts are increasingly moving CBD and its therapeutic applications away from these potentially negative connotations. By doing so, it has become a widely accepted medication for a wide variety of diseases and disorders.
The American market
The CBD market is currently dominated by America, which controls a massive 40% share; this growth has been aided by changes in cultural norms, and the widespread trend of legalization of cannabis across the country. Growth in this area may slow, however, or at least be surpassed by Europe. Europe currently has a 31% market share and shows signs of rapid expansion.
The European market
Currently, the legal status of CBD across Europe is undergoing significant changes. Therapeutic use of CBD is generally legal throughout Europe, although it differs from country to country with several legal gray areas. A significant decision by the ECJ (European Court of Justice) in 2020 found that CBD is not a narcotic, which should provide a growing amount of legal stability that is sure to attract more investment. As a relatively underdeveloped market, CBD companies in Europe face a bright and exciting future.
What’s next?
As regulatory barriers continue to disappear, they will increasingly prevent the expansion of the CBD market. Previously, the most significant obstacle to market growth, changes in legal status in the Americas and Europe mean that CBD companies are likely to see a global proliferation. As research shows more and more potential therapeutic applications, and consumers ’awareness of these benefits is spreading, the CBD industry is likely to see an incredibly bright future.
