According to a December 2016 article in Forbes, sources believe that the CBD market will grow to $2.1 billion in consumer sales by the year 2020; $450 million coming from hemp based sources alone. This is a 700 percent leap from 2016 statistics. Matt Karnes of Greenwave Advisors is quoted in the article –
“In terms of the CBD market size, I estimate an almost $3 billion market by 2021. Right now, there are 15 states that allow CBD only — this is in addition to the 28 states plus DC that have legalized medical marijuana.”
The sheer size of these numbers and the continued explosive demand for hemp based CBD products bodes well for American workers – and creates new opportunities for wealth creation.
Investment Strategists Preparing For Investment Wave
Hundreds of investment firms are gearing up for the CBD tide. According to The Seed Investor, 2018 will be the year for accelerated growth of the cannabis markets. Outco, the largest licensed cultivator in Southern California, learned that 38% of users and non-users said they wanted to learn more about CBD oil. Forbes indicated that Outco also believes the CBD market is poised for growth as well.
CBD is currently legal in 44 states and only six states – Idaho, South Dakota, Nebraska, Kansas, Indiana, and West Virginia still consider every part of the cannabis plant, including CBD, to be illegal.
Headset Research is one of the first companies in the country to begin collecting data about the cannabis industry for investment research. According to Headset, Washington state alone has over 800 CBD products in the marketplace. Headset provides real-time data for monitoring the competitive landscape and gives investors the knowledge they need about a company prior to taking the investment leap. Headset isn’t the only firm of this kind. It is just an example of the doors of opportunity that the CBD markets are opening for quick-thinking entrepreneurs.
New Frontier Data projects that by 2020, the legal cannabis market will create more than a quarter million jobs for American workers. New Frontier Data is an authority in business intelligence for the cannabis industry. The company continues to find evidence demonstrating that legal cannabis is one of the fastest growing industries in the United States and one of the hottest commodities on the market.
“These numbers confirm that cannabis is a major economic driver and job creation engine for the U.S.economy,” said Giadha Aguirre De Carcer, Founder and CEO of New Frontier Data. “We expect the cannabis industry’s growth to be slowed down to some degree in the next 3 to 5 years, however with projected total market sales to exceed $24 billion by 2025, and the possibility of almost 300,000 jobs by 2020, it remains a positive economic force in the U.S.”
This report does not count the “trickle down” effect of the industry as many different types of jobs (such as those for webs designers, article writers, phone staff, et al.) are not included in this report. The CBD and cannabis industries will affect every sector of the economy with the many doors that it will open for the American worker.
Savvy Entrepreneurs Will Find New Opportunities
We have looked at how the CBD and cannabis industries will open doors for investment opportunities and job creation. However, as we see time and time again in this ‘new economy’, savvy entrepreneurs will open doors for the creation of vast wealth creation for themselves, and others. Here’s a look at a sampling of
Forbes’ top innovators in the field –
- Uri Zeevi, CEO of Seedo, an automatic hydroponic device that grows medical cannabis for home use using an indoor, automated system (they call it the “self driving car of hydroponic growing”)
- Carrie Tice, Co-Founder of Octavia Wellness, a Direct Home Sales Company in California. Carrie provides discreet, in-home sales and products for specific conditions. The company’s focus is entirely on the senior citizen demographic, catering to their specific needs and desire for confidentiality
- Jamie Rosen, CEO of Dr. Dabber, a Nevada-based vaporizer company specializing in portable, oil-compatible products. Dr. Dabber provides sleek, portable vaping devices that give patients the ability to carry CBD with them discreetly and use them simply; just like smoking a cigarette
According to the Hemp Business Journal, immediate opportunities lie in the advancement of cultivation techniques and in the development of processing infrastructure. But, their list of the three of the greatest opportunities in U.S. hemp industry are –
- Innovations across the industrial hemp value chain – Cultivation is labor intensive and processing expensive. When farmers and entrepreneurs find innovative ways to solve both problems we will see prices come down and more affordable for those who need CBD the most
- Better education: From farmer to the public – Best practices for growing hemp (testing at under 0.3 percent THC) are not widely understood and laws are complex. Hemp growing ‘best practices’ guidelines need to be established than disseminated (preferably by a non-governmental body). Commercialization strategies are underdeveloped and investment capital is still focused on the legal marijuana industry. The more Americans learn about hemp and CBD, the greater the “green wave” will become
- The Hemp CBD Market – The emergence of the hemp based CBD markets in Colorado in Kentucky made for hot news in 2015 and the momentum in these state is expected to continue. The U.S. now gives farmers another crop to cash in on – hemp. And, increasingly, CBD companies are depending on these states, especially Kentucky, as the state for obtaining hemp. Again, as hemp is labor intensive, farmers, and entrepreneurs, will find methods to grow hemp at more affordable rates
When any new trend hits the markets, doors open for a tide of entrepreneurial ‘exploitation’. The CBD trend is no different, however; this ‘trend’ isn’t a fly by night proposition. This is likely to create vast wealth creation for those with a great idea and the funding to make it a reality.
*In the Federal Budget that was passed in late 2015, Senator Mitch McConnell inserted a rider that made any use of Federal funds on legal hemp cultivation, distribution or processing. In the passage of this language, the Federal Government’s prohibition of industrial hemp further came to an end as interstate trade is legal as long as the crop and products were compliant with Section 7606 of the 2014 Farm Bill.
The expanding demand and growth of the CBD markets is creating opportunities for jobs, investment, and entrepreneurial creativity. With increasing acceptance of CBD as a treatment for a host of ailments, the use of THC in conjunction with CBD, will eventually become a demand and, perhaps, a reality.