Given what 2020 has been, especially for an industry as novel as CBD, CBD companies are sure to be under a lot of pressure in 2021. The weight on her shoulders becomes even heavier when you add the ever-opaque regulations to the mix that technically includes CBD products as Schedule I substances alongside heroin and LSD at the federal level.
Nonetheless, industry experts seem to believe that these obstacles have not stalled the momentum of CBD; on the contrary, the CBD market is said to be in full swing.
ON report from The Brightfield Group, a data analytics firm specializing in the cannabis and CBD consumer space, offers some insightful information that together paints an optimistic picture.
For one, US hemp CBD sales are expected to exceed $ 4.6 billion a year earlier by 15% to reach $ 5.3 billion.
This is in line with hemp benchmarks report dated November 2020, which showed that the volatility of the hemp market, catalyzed by the pandemic but originally caused by the heat and oversaturation of the hemp market in 2019, is declining and giving way to the stability of hemp prices. This is great news for cannabis growers who can plan ahead for sales, demand and streamline their entire operations that should all seep down the supply chain.
The CBD market is expected to become increasingly diverse in 2021, with beverages and gums likely to be the fastest growing product types, growing 71% and 44% in value, respectively. This makes perfect sense considering how many innovative CBD brews we’ve seen for such an infant niche.
Tinctures, on the other hand, are expected to continue to hold the lion’s share of the market at 18% of retail sales in 2021.
Online CBD sales are projected to decline 4%, from 42% of the total market in 2020 to an estimated 38% in 2021, or $ 2.02 billion. This is to be expected as the shops reopen.
This trend is expected to continue in the years to come. According to the report by The Brightfield Group, the projected average annual growth rate (CAGR) of the hemp-derived CBD niche for the period between 2021 and 2026 is 25%. Quince market insights assume that the CAGR of the global CBD market will be 51% for the period 2021-2030.
In other words, CBD is still there and growing strong, even amid the pandemic and stifling regulations.