According to recent projections by Grand View Research, the global CBD industry was valued at USD 2.8 billion in 2020.
The same statistics suggest that the CBD market is poised to grow at a compound annual growth rate (CAGR) of 21.2% between 2021 and 2028. These statistics can only mean one thing for traders – now is the best time to invest in the lucrative CBD industry.
But perhaps we should back up a bit and familiarize ourselves with what CBD is.
Short for cannabidiol, CBD is a compound derived from marijuana, which boasts immense therapeutic benefits. It’s worth mentioning that cannabis produces over 100 other pharmacologically useful extracts. These compounds are collectively known as cannabinoids. However, CBD and tetrahydrocannabinol (THC) are the two most widely studied cannabinoids.
Like other cannabinoids, CBD and THC offer numerous health benefits. The primary difference between these compounds lies in how they interact with the human body. THC induces euphoria, better known within the marijuana community as a ‘high.’ On the flip side, CBD contains no psychoactive or intoxicating properties.
The following are the major factors driving the growth of the CBD industry.
1. CBD Offers Numerous Health Benefits
The primary reason behind the sustained growth in the CBD industry is that the compound contains many health benefits.
Here are the top medical issues that CBD may mediate;
Cannabidiol is widely recognized for its analgesic properties, which makes it a potential remedy for pain.
Consuming other CBD products by reputable sellers relieves pain by mimicking the behavior of opioids. But unlike conventional opioid drugs, CBD presents almost no risks of addiction Learn more about that.
CBD also offers anxiolytic benefits. The compound relieves stress and various anxiety disorders by improving the body’s signaling of the neurotransmitter associated with the feel-good affect – serotonin.
People living with insomnia may also take advantage of cannabidiol’s therapeutic benefits. CBD combats insomnia in various ways.
First, the compound shortens sleep latency. Sleep latency is the average time taken to fall asleep.
Another way CBD fights insomnia is by reducing or eliminating the rapid eye movement (REM) phase of sleep. REM sleep is the sleep phase marked by rapid eye movement and intense brain activity. Sleep experts believe that much of the dreaming happens during REM sleep.
Lastly, CBD may fight insomnia by managing some of the condition’s side effects. Examples include REM sleep behavior disorder and post-traumatic stress disorder.
In addition to pain, anxiety, and insomnia, the following are other medical conditions that CBD may remedy;
- Inflammatory diseases, such as inflammatory bowel syndrome (IBS)
- Nausea and digestive complications
- Metabolic disorders like diabetes
- Skin diseases like acne
- Psychological issues, such as schizophrenia
2. There’s A Global Trend Towards Legalization
CBD is a cannabis extract. Therefore, it’s logical to expect the compound to be subjected to sweeping marijuana bans worldwide.
However, there seems to be a tendency towards global legalization of cannabidiol compared to other cannabis extracts, such as THC.
In the United States, the passage into law and subsequent enactment of the 2018 Farm Bill legalized CBD in all legal states. The only condition is that the products cannot contain over 0.3% THC potency.
Although different countries operate under different marijuana laws, regulators tend to be more lenient towards CBD.
3. CBD Doesn’t Induce Euphoria
The fear of intoxication is the primary reason many cannabis skeptics express reservations about using the plant’s extracts.
However, most people don’t realize that marijuana produces hundreds of compounds, and only a handful of those induce euphoria. Fortunately, CBD contains no psychoactive properties.
As users continue to explore cannabidiol, realizing that the compound doesn’t make them high is an incentive to integrate it further into their lifestyle.
And here’s the best part – some CBD products may also contain significant THC levels. Therefore, such products appeal to both medical and recreational cannabis users.
4. Multiple Ways to Invest In the Industry
Another reason behind the rapid growth in the CBD industry is that there are various ways to invest in this lucrative sector.
You can enter the industry as a trader of processed cannabidiol products. This happens to be the most common way to invest in the industry.
You can also choose to offer distribution services. Some of the products you might deal in include finished CBD goods and packaging materials.
There’s also the option of trading in CBD stocks. One significant advantage of this investment channel is its hands-off approach. All you need to do is study the stock market to determine when to buy and sell your stocks.
Other common ways to invest in the CBD industry include becoming a cannabis grower and offering CBD-related consultancy services. As a CBD consultant, you could provide information on various aspects of the industry, including;
- CBD’s health benefits
- Side effects
- Delivery methods
- Dosing information
- CBD’s legality across the globe
5. Various Products to Experiment With
A few years ago, the only methods to consume cannabidiol were to smoke dried cannabis extracts or prepare homemade cannabis tea. However, the advancement in technology led to the introduction of additional CBD delivery methods.
Today, you can also consume CBD by orally administering CBD tinctures, vaping CBD e-juices, ingesting CBD-infused edibles, or topically applying CBD-based skincare products. Basically, the delivery method you choose depends on what you’re looking for.
For instance, stealth users can opt for CBD edibles like gummies. Those who want to look a bit cool and sophisticated might consider vaping CBD e-liquids.
The cannabidiol industry is on an upward growth trajectory, and if recent estimates are anything to go by, the industry is headed for greater days ahead. So, if you’ve always considered pursuing a cannabis-related venture, now is the time to take the plunge.
A word of caution, though – remember to establish your local CBD laws before venturing into the cannabidiol industry. It would be a terrible economic idea to launch a CBD business in a jurisdiction where the compound remains criminalized.
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