CBD Popularity Soars in the U.S. as Regulations Loosen
FinancialBuzz.com News Commentary
FinancialBuzz.com
Sep 05, 2019, 09:00 ET
NEW YORK, Sept. 5, 2019 /PRNewswire/ -- Following the passage of the U.S. Farm Bill in late 2018, CBD-based products have rapidly spread throughout the country. Notably, the U.S. Farm Bill authorized the sale and transportation of CBD products throughout the nation. As a result, consumers can easily find CBD products such as patches, topicals, and tinctures at local convenience stores, pharmacies, and even e-commerce platforms. Even major international retailers such as Amazon and Walmart began to list CBD products on their sites after the U.S. delisted CBD from its status as a Schedule 1 controlled substance. To note, CBD is only legal if the THC content within the product is less than 0.3%, which is insufficient to cause psychoactive effects. Prior to the passage of the U.S. Farm Bill, the overall hemp market was split amongst several categories. The hemp-CBD segment was still the largest, controlling approximately 23% of the hemp industry. However, the personal care segment trailed shortly behind the hemp CBD market, accounting for 22% of the market share. Moreover, the food and industrial application segments accounted for 17% and 18% of the total market share, respectively. Although the market share remained relatively split across various segments, the hemp CBD market is projected to accelerate at a much more rapid rate compared to the rest of the hemp market. Furthermore, by 2022, the U.S.-based hemp CBD market is projected to deliver USD 646 Million in sales, representing a 240% growth compared to 2017. And overall, the hemp industry is positioned for further exponential growth, largely due to the legalization of CBD. According to data compiled by Hemp Business Journal, a division of New Frontier Data, the total sales for the U.S. hemp industry totaled USD 820 Million in 2017. The research suggests that the industry is expected to grow to USD 1.9 Billion by 2022 and at a CAGR of 14.4% during the 5-year period. Global Payout, Inc. (OTC: GOHE), Terra Tech Corp. (OTC: TRTC), Marijuana Company of America, Inc. (OTC: MCOA), Medical Marijuana, Inc. (OTC: MJNA), Puration Inc. (OTC: PURA).
