FDA Impact On CBD Market: With Federal Regulation, CBD Sales Would Hit $11B By 2027, Without It? $4.5B Less
8:00 am ET July 14, 2022 (Benzinga) Print
Cannabis research and data firm Brightfield Group released its latest report Thursday on the U.S. CBD market confirming that the CBD industry is highly dependent on Food and Drug Administration (FDA) regulations.
The new report estimates that if federal regulation happens by 2024, CBD sales would reach $11 billion by 2027. Without it? The market would hit $6.5 billion by 2027, meaning that federal law changes would make for a $4.5 billion difference. The $11 billion under new federal laws, would be mostly led by ingestible product sales growth, including capsules and gummies.
Furthermore, per the report, the U.S. hemp-derived CBD market is projected to reach $5.0 billion in retail sales in 2022.
While struggling without federal regulations, some CBD companies are finding alternative ways to get established in the space. One is by creating a name in a wider wellness space, which they achieve by developing and advertising non-CBD products and teaming up with other non-CBD-related businesses. This way, they're in a position to create a new customer base.
Key Takeaways
The top 5 CBD companies are the same as last year, with Charlotte’s Web (OTCQX: CWBHF) and Your CBD Store (SUNMED) being the first two.
Businesses that have experienced notable gains in the first quarter of the year include High Tide (NASDAQ: HITI) with NuLeaf Naturals, FAB CBD and HeavenlyRx/Simply Better Brands (OTCQB: PKANF) with PureKana.
Charlotte’s Web continues to hold the biggest portion of online CBD sales, while Your CBD Store (SunMed) and CBD American Shaman dominate in brick-and-mortar sales.
Topicals are expected to reach 41.5% of grocery CBD sales, followed by tinctures with 19.1%.
