There is a lot of hype surrounding the use of marijuana and other products that consist of THC or tetrahydrocannabinol. However, the popularity of CBD or cannabidiol is on the constant rise and with extensive research on the matter it has been proved CBD possesses the ability to treat potential health issues. This enables the possibility to expand further. According to BDS Analytics and Arcview Market Research, it is estimated that the CBD market will cross $20 billion by 2024 in the United States.
Investors are surprised by the growing knowledge of an expected split in the market. Dispensary sales make up $5.3 billion of the total and pharmacy sales forecast only $2.2 billion. It is general retail that occupies the majority of CBD sales – $12.6 billion.
The growth figure of CBD sales for the future is also based on an assumption that CBD will become more accepted as a supplement or food additive. This, however, will be based on whether or not the matters with FDA is resolved.
Retail Market: What Does It Include?
The CBD industry is on the rise and a massive part of it is devoted to wellness and health. CBD has found its way in a variety of products that is used on an every day basis. This includes oils, creams, bath bombs, and even infused water. The primary advantage of CBD over THC is it doesn’t cause any high that enables manufacturers to combine CBD subtly with different products.
When CBD is added to a product it proves to be more appealing to consumers who are conscious about their well-being. Though more research is necessary to determine the impact of CBD, it does not seem to slow down consumers from buying more products that contain CBD. In 2018, the product sales of CBD including hemp products crossed $238 million. Sales increased by 57% from the previous year. Researchers expect further growth in the sales in the foreseeable future.
How Is This Affecting Investors?
Marijuana stocks seem like a great investment opportunity, but one shouldn’t overlook the potential that CBD has to offer, especially those companies centered around CBD. Stocks can prove to be an impressive opportunity for investors who wish to make the most of retail growth. This is more so because CBD products are well-positioned in high-traffic areas.