There has been a substantial growth in demand for cannabidiol (CBD) products around the globe in recent years, mainly in developed countries such as the U.S., France, Canada and the Netherlands. As a result, various cannabidiol product manufacturing companies have partnered with big retail stores to better supply their consumers. To note, CBD has mainly become popular because researchers had discovered that it offers a number of therapeutic benefits. For instance, researchers noted that CBD can alleviate minor medical conditions such as headaches or soreness. By source, the CBD market is segmented into marijuana and hemp. Currently, the hemp segment is anticipated to grow at a higher CAGR of 53.1% throughout the forecast period. Hemp contains trace amounts of THC, whereas CBD is present in large amounts, thus CBD-based products are being used as a therapeutic vessel for several health conditions. “We’re witnessing CBD maturing from a cannabis sub-category into a full-blown industry of its own,” said Roy Bingham, Co-Founder and CEO of BDS Analytics. “Our growth forecast for the CBD market, across all distribution channels, predicts a compound annual growth rate of 49 percent by 2024. This is a great opportunity for all involved, but it means the road ahead will include decisions that need to be informed by the best possible data.” TAAT Lifestyle & Wellness Ltd. (CSE: TAAT), Zynerba Pharmaceuticals, Inc. (NASDAQ: ZYNE), Tilray, Inc. (NASDAQ: TLRY), Sorrento Therapeutics, Inc. (NASDAQ: SRNE), Village Farms International, Inc. (NASDAQ: VFF) (TSX: VFF)
Part of the spike in interest can be attributed to the passage of the 2018 Farm Bill, which legalized production of industrial hemp, transforming it into a mainstream agricultural product. Shortly after, numerous categories of CBD products started to appear. Now, the growing awareness about the therapeutic benefits of cannabidiol has influenced people to buy such products, even at relatively high costs. As a result, mainstream retailers are now focusing on selling CBD-based products, as these have a higher profit margin. Various health and wellness retailers such as CVS Health, Rite Aid, and Walgreens Boots Alliance have decided to sell CBD-based products. In fact, earlier last year, CNBC reported that Walgreens planned to sell CBD creams, patches and sprays in nearly 1,500 stores in select states.
