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The CBD market size has expanded drastically over the last few years. In line with the recent developments in the healthcare and pharmaceuticals industry, the CBD (Cannabidiol) market has also made its way in the headlines and breaking news.
The impact has been so overwhelming that according to Archview Market Research, the CBD Market Size will achieve a net worth of $20 Billion by the year of 2024.
Because of the legalities involved with the business of CBD, the new report has been made by only taking the legal sales processes into account. So, the new forecast will only depict the sales of CBD and related products by means of pharmacies in the general market, licensed cannabis dispensaries and various other outlets in the market as smoke shops, cafes and grocery stores among few others.
Factors Affecting CBD Market Size
Market analysis however predicts that CBD and related products will soon have more market share in the general stores than that in cannabis dispensaries.
The primary reason for this is the integration of of cannabis related products into the mainstream society. A number of states have decriminalised the use of recreational cannabis and even the medicinal form of it which is why there are a lot of black and white sales showing up.
Sales has been further predicted to go on through other channels of distribution. The CBD market size is likely to achieve a compound annual growth rate of 49 percent through all kinds of distribution channels by the end of 2024.
Additionally, it is expected that the market that revolves around CBD along the gamut of THC products, will will generate an accumulated revenue of $45 billion for cannabinoids and related products by the end of 2014.
Various other findings have been put forward from the study:
- Sales for CBD and related products have grown at an even faster rate than overall sales in dispensaries since 2014
- Full federal legalisation of cannabis is supported by 66 percent of the consumers of hemp-derived CBD in the U.S. 90 percent of which are of belief that marijuana yields medical benefits
- 40 being the average age for CBD consumers, possess a higher level of education, and are more likely to be employed full time compared to those who are non-consumers.
Vice president of consumer insights at BDS Analytics Jessica Lukas, explained that they had to look at the landscape today, and then assess and predict where the market will go.
She expressed to the media,“THC and CBD are very different with different functionality. Product forms that make sense and are very successful for THC do not necessarily transfer to CBD. Additionally, we had to strongly consider the interaction between the general market channels and the dispensary channel in assessing whether or not the availability of CBD products in the general market is incremental to purchases in dispensaries, will replace dispensary purchases, and/or will drive greater penetration and acceptance of legal cannabis.”
“Most products being sold in the general market today are in untracked channels of distribution,” said Lukas. “While dispensaries and e-commerce drive the majority of cannabinoid sales today in the U.S, this shifts versus the next five years”, she added.