Cannabidiol (CBD) is the part of the cannabis plant that doesn’t get you high like the THC side of the plant. It is used for health reasons instead of for recreational purposes. The CBD products are derived from marijuana plants or industrial hemp plants.
That is a 700% increase from 2016.
Matt Karnes of Greenwave Advisors is even more optimistic concerning the development of the CBD market saying, In terms of the CBD market size, I estimate an almost $3 billion market by 2021. Right now there are 15 states that allow CBD only — this is in addition to the 28 states plus DC that have legalized medical marijuana.
There is also evidence that traditional marijuana users are willing to give a try to CBD. The largest licensed cultivator in Southern California, outco learned that 38% of users and non-users said they wanted to learn more about CBD oil. They believe that the market is poised for growth.
Not only is but industry insiders have already targeted it. According to Headset Research data, in Washington state alone there are over 800 CBD products in the marketplace. This makes it difficult for consumers to know what is what when they are trying to buy CBD products. Moreover, CBD products, although suggested to improve a variety of health problems, can not actually make those claims. So most labels on such products are light on details and this can make it pretty difficult for a shopper to know what to buy.
The government’s approach towards CBD is confusing. The Federal government is unclear as to oversight of these products. The Industrial Hemp Farming Act of 2015 would amend CSA or the Controlled Substance Act to exclude hemp and thus hemp-based CBD.
Medical Marijuana Inc. said that there were $65 million in hemp-based CBD sales in 2015 and that they are the current market leader with over $800,000 in retail CBD sales per month. Their CBD sales have grown from $3.4 million in 2013 and are expected to be $9 million in 2016.
The market has changed in the short time that Medical Marijuana started selling their products in 2013. Four years ago, customers were paying $1.25 for a mg., but buying less. Now the prices have plunged to 2.5-4 cents per mg. And also the volumes have increased. They were basically the only game in town in 2014 when their sales were $14.5 million. However, the drop in prices and also increased competition has halved their sales figures even though their customer count has increased.
It is critical for consumers to educate themselves. Medical Marijuana says its products are derived from hemp grown in Austria. Their products include Real Scientific CBD oils and Dixie Botanicals. They also own the Kannaway company, making the Revive line of products including the Pro-X, a 1,000 mg of CBD that is marketed. The company believes everyone should have 50 mg’s of CBD every day.
Another industry leader, the venture capital firm General Hemp, which owns a majority interest in Medical Marijuana, Inc. made $34 million in CBD sales in the last three years (2014 2016), excluding Medical Marijuana, Inc. companies. There’s CBD producer Axim Biotechnologies, which holds the license for CanChew, a CBD chewing gum. Last month, Axim received a patent for CanChew. Medical Marijuana owns 47% of Axim stock.
The products are not cheap. The Kannaway starter pack that includes the Pro- PM Restore drops costs $250 and AM Awake drops. Consumers which have not tried the product should also be aware that CBD tastes bad. Others suggest mixing it with a drink to create it more palatable while some regular users say you get accustomed to the bad taste.
Headset research also noted that since the product isn’t regulated in the same way as THC, CBD producers can import industrial CBD oil. Many order large vats of CBD oil that’s produced from Chinese industrial hemp and cut that into their products. This makes it difficult for those who grow and extract CBD locally to compete and consumers are not currently educated enough to have a preference for ‘homegrown’ CBD products.
Check with these CBD companies to learn where the company gets its CBD extract and what products they ought to buy and it’s up to consumers to do their homework. It is also a trial and error process or a bit. Users will know if the product works for them by giving it a try.