In 2018, the Cannabidiol market was reported by Value Market Research to be valued at 1.39 billion dollars. With the popularity and growth of the industry compounded by the legalization movement of the cannabis plant for both medicinal and recreational use in the United States and other countries, there is no indication that a slowdown is near. The properties of the plant’s compounds include a wide array of uses encompassing therapeutic, neuroprotective, and antioxidant values, making its application in pharmaceutical products significant. This has added to the fast-paced growth of the industry, making the global market for cannabis-derived products a great opportunity for those looking for the next big investment.
History of legality
The health benefits that are currently being attributed to CBD are not new. These can be traced back to Sheng Nung, the Chinese Emperor that ruled China thousands of years ago. During those times, the molecules formed part of an infused tea that people believed could help alleviate malaria, gout, and other medical conditions. In the 1800s, William O’Shaughnessy published a study on the medical properties of the cannabis plant. In the early 1900s, the plant was banned, and it took decades for states to begin reversing the restrictions. California, the first state to legalize the use of cannabis for medicinal purposes, initiated the booming U.S. market with other states following. Today, every state in the union has legalized the use of CBD, and many have lifted bans on THC. Globally, the market is following similar patterns. Countries are beginning to adapt to the prospering industry. Furthermore, globalization is requiring that countries modify and adjust laws that restrict or regulate the import and export of the substance.
Currently, the push for legalization created an industry in countries like Uruguay, Colombia, Chile, Argentina, Peru, Brazil, the United States, and many others. This development is creating the need to standardize products so that consumers understand what they are getting. In the United States, for example, manufacturers are not required to label products in a particular way. Therefore, there is a lack of uniformity. Furthermore, such products may contain different or additional ingredients that the end-user should be aware of prior to consumption. Those that are labeled were found to have errors or misinformation, thus making the quality of the product difficult to determine. Without government regulation in this aspect, it is up to third parties to identify and review product information. Select CBD review, for example, is one such service that provides information to consumers looking to obtain the highest quality product.
The global industry is expected to reach 23 billion dollars in sales by 2025, with U.S. figures accounting for 1.8 billion. As growth takes place, other service-based sectors of the economy can also benefit from the expansion. Areas that are not necessarily related to cannabis in terms of the product have also seen an opportunity. For example, lawyers that specialize in cannabis law, such as McAllister Garfield, have been providing businesses in the industry with expert knowledge on important legal matters. For any type of business to prosper, there must be a level of protection afforded to conduct such activities. Given that the plant is still illegal at the federal level and enforcement agencies such as the DEA have previously targeted legally operating establishments, such expertise is critical to ensuring continued growth. Ultimately, as the sector continues to mature, these semi-related industries will prosper. The first step in this evolution was with the dispensaries, laboratories, and retailers. Nevertheless, the secondary phase of growth may affect sectors not associated with cannabinoids and may even create new sectors of the economy altogether.