CBD Industry And How It’s Growing And Where It Expects To Go
You don’t have to be a full-blown hippie or even a supporter of cannabis to have recently heard about CBD products and everything that they have to offer. CBD products have been available on the market for quite some time now, but it seems like their popularity and use has reached an all-time high. And, this is probably due to the fact that more and more are starting to realize just how they really can improve your overall quality of life. That being said there is still a lot of widespread speculation and doubt about the substance. Does this mean that CBD is doomed to fail or will the demand continue to rise? Where is CBD headed in the future?
Is CBD A Multibillion-Dollar Industry?
As of right now, there is a quickly rising demand for both CBD and hemp-based products. This growth is expected to push both markets into unseen territories. The sales values of these substances are only expected to increase. In fact, the market has been estimated to grow to a $10.6 billion industry by 2025. This of course is just leaving more and more companies to get in on the lucrative franchise of CBD.
Sugarmade, INC Will Grow The Market Further
Sugermade, INC is without a doubt one of the largest publicly traded hydroponics supply companies in the world. They do business with all types of growers and dispensaries throughout the United States. With their widespread influence on the market, they have the ability to change the CBD market forever. And, it was just recently announced that they are going to invest over one million dollars in capital to Hempistry, INC. This is a privately held Nevada corporation that has begun producing high strains of CBD products in the fields on Kentucky. In addition to this, they are willing to supply the company with cultivation tools and supplies that will be necessary to get their operation off the ground floor.
Hempistry has already started planting on its 23,000 acres of prime Kentucky farmland and expects the yield to be plentiful. This exchange will be extremely beneficial to the shareholders of Sugarmade because the investment will be made in the form of common shares. This will make Sugaremade a part owner of Hempistry and all of its shareholders will be able to benefit from the earnings of Hempistry.
Becoming More Widely Available
One of the things that really helps the growth and sales of the CBD industry is that the substance is actually derived from the hemp plant rather than the marijuana plant. This is important because it makes the substance so readily available. Marijuana is only legal in 32 of the 50 states, whereas CBD is legal in almost all 50 states. CBD offers the user the ability to reap the same benefits of marijuana use without experiencing the mind-altering effects. And, this is because hemp contains little to no THC. In fact, in order for CBD products to be considered legal in the states where it is legal, it must contain 0.3 percent delta-9 THC or less.
Will CBD With High THC Content Ever Be Legal?
Advocates continue to push for full legalization of cannabis-based CBD products. In the meantime, some members of the medical community and politicians are completely opposed to the idea. However, this has not deterred fans of the drug to push forward.
Cannabis contains more than 100 compounds, with THC and CBD being the most popular. To understand the importance of these compounds, it is important to know their similarities and differences. The most notable difference between these two compounds is psychoactive properties, which can only be found in THC. These effects are why THC has a lower approval rating and not been legalized for use in CBD products.
For individuals who enjoy the “high” effect of THC, CBD products with high content would be great. But, state laws continue to prevent manufacturers from producing such products. As more and more states adopt new cannabis laws that legalize cannabis for recreational use, it may not be too long until you see CBD products with high THC content available over-the-counter.
Increased Competition
With the growing popularity of the CBD industry, it should be noted that more and more people are interested in getting involved. A lot of companies are seeing potential here. They’re eager to begin selling CBD products to the public in hopes of turning a profit. At this point in time, the biggest CBD producers are small. This will likely change in the future. Just take a look at the ecigarette industry. In the beginning, e-cigs were made by independent companies.
After e-cigarettes grew in popularity, big tobacco companies decided to get involved. They bought out many smaller companies and they began making their own e-cigarette products. This could eventually happen in the CBD industry as well. When those bigger companies start to lose out to CBD, you can guarantee that they’re going to enter the industry and attempt to capitalize on CBD too.
Decreased Prices
The laws of supply and demand are still relevant today. Supply and demand can be applied to many industries. For instance, gas prices depend heavily on supply and demand. When supply is low and demand is high, those gas prices are going to soar higher. CBD products are the same. At this point in time, there are few manufacturers of CBD products. In the future, there will be far more companies out there making these products and that will allow the industry’s supply to catch up with the demand.
That is going to be great for consumers because it will cause prices to decrease swiftly. If you’re interested in reaping the rewards of CBD and you don’t want to spend so much, you should wait it out. Before too long, the prices will be much more reasonable.
The Future
The truth of the matter is that the CBD industry is now bigger than ever. It is also more profitable than most people would have ever expected. This is unlikely going to change at any point in the future. More and more people are beginning to analyze and realize the perks associated with CBD. Additional research has also proven that CBD can be beneficial for many reasons. Consumers should not be surprised to see the CBD market expand and grow in terms of value for many, many years to come.