Apr 6, 2020
CBD Market Expects Continued Growth
The CBD craze is here to stay, and private label entrepreneurs should pay attention. The association of CBD with marijuana and stoners seem to be something of the past, and the compound is rapidly gaining popularity and traction in the wellness field. If you haven’t paid much heed to the growth of CBD in the private label skin care market, start now. Companies are scrambling to keep up with demand. BDS Analytics, a company focused on statistical and sales data solely for CBD, provides cannabis industry intelligence to the business community. According to BDS Analytics, the CBD industry is estimated to be worth more than $20 billion in 2022. This is after several other agencies have low-balled the figures, which tells us that we might see even more growth than what is currently predicted.
Recently, the Arthritis Foundation released guidelines on how to use CBD safely for joint pain, and that was only one of the benefits they listed. This is the first time a major advocacy group has endorsed CBD as a method to treat pain, despite admitting that there is little scientific evidence to support the claims. They substantiate their claims by stating that their July 2019 survey of 2,600 patients found significant use and interest in CBD products for joint pain. They also went on record to urge the FDA to speed up the study and regulation of CBD. But even without the FDA’s approval for CBD products, people now use CBD for a number of ailments including pain, insomnia, and anxiety.
Companies producing CBD and hemp products are seeing incredible results. Business has never been better and it doesn’t seem to be slowing down. A company called CV Sciences announced that its CBD oil was used in the first study to examine the benefits of CBD for the treatment of Post-Traumatic Stress Disorder (PTSD). It examined the effect of oral CBD on 11 patients at an outpatient clinic. The study was published in The Journal of Alternative and Complementary Medicine in their April 2019 edition.
Kona Gold Solutions, Inc. moved into its new 5000 square foot headquarters a year ago and has already maxed out its capacity to store new product. It has subsequently leased a warehouse in South Carolina to acquire 15,000 square feet of warehouse space, with the option to lease another 15,000 square feet in 2 years. It is clear that they are trying to prepare for future exponential growth similar to what we’ve seen over the last year.
The CBD industry is also making an impact on other, far more unlikely markets. PotNetwork Holdings, Inc. has seen a revival in print media after they launched their PotNetwork Magazine in February of 2019. Due to the popularity of CBD, the magazine has seen immense growth that far exceeds what one would expect when launching a print publication in 2019. It seems that whatever CBD touches, turns to gold.
The story is not any different when it comes to skincare. A report by Grand View Research Inc. predicts that the CBD skincare industry alone will be worth $1.7 billion by 2025. Any entrepreneur who has been closely watching CBD outperform all other predictions will take this with a pinch of salt, but the bottom line is that we will see immense growth even in niche CBD markets like skincare. In 2018, which was before the 2018 Farm Bill was released that changed the landscape dramatically for CBD businesses, the CBD skin care market size was valued at $234.1 million. The study revealed that this market is expected to expand at a CAGR (compound annual growth rate) of 32.9% from 2019 to 2025. With an already established market and more research being done into the benefits of CBD for skin specifically, sales revenue for CBD skincare products is sure to grow as exponentially as it has for the rest of the CBD industry. This is owing to the growing awareness of the benefits of CBD in personal care products.