It would be an understatement to say that last year was a booming period for the cannabidiol industry. This is also primed to be a record year in terms of product innovation and sales, two aspects that characterize the growing hemp CBD market.
In December 2018, the Trump administration passed the Agriculture Improvement Act, which took hemp out of the government-controlled drug classification. That move also spurred American agriculturalists to repurpose their farming land, earlier used for food crops and feed crop cultivation. These crops included alfalfa and corn used for industrial hemp varieties containing low THC and high CBD. A CNN news report from April 2019 profiled farmers experiencing both demand and profit increases since converting the agricultural land for industrial hemp’s cultivation. The report estimated sales of industrial hemp-based goods to be more than $2.2 billion two years from now.
Market activity this year will be a big factor in determining whether the profitability of hemp can sustain the plant’s robust trajectory or not. CBD users will likely be baby boomers, and they will more careful about the safety and quality of the goods they purchase. The industry expects greater attention to CBN and CBG when the specific effects of these cannabinoids turn more broadly known.
The Vice President of Cannabis Practice at Nielsen, Rich Maturo predicts CBD education efforts, particularly the ones targeted to healthcare providers, to increase this year. Besides, he projects that cannabidiol’s prices will drop, that more farmers will keep entering the sector, and that the present percentage of agriculturalists increasing land for hemp’s cultivation will amplify.
These are positive projections, but the industry has seen its fair share of issues, highlighted in an October 2019 CBD blog published on Forbes. Some of these problems are the lack of scientifically-sound and widespread information on the benefits and legality of cannabidiol products. Changing rules make it tough for retailers to meet the demand, as data appears regarding drug interaction and the practical consumption of cannabidiol as an additive.
The efficiency and quality of goods vary considerably, as consistent standards are in process across the industry.
Forecasts may vary, but there seem like strong commonalities that give a clarified picture of what lies ahead in 2020 for the industry. Anyhow, the effect of cannabinoids derived from hemp will be experienced in the agricultural system, the consumer market, and the healthcare sector beyond 2020.