CBD projected to reach billion dollar mark by 2020
According to a new report by Brightfield Group and HelloMD, CBD is projected to grow into a billion-dollar market by 2020.
Brightfield Group estimates that marijuana-derived CBD will hit $176 million and hemp-derived CBD will hit $291 million in 2017 for a total CBD market of $467 million. If the compound annual growth rate of 55% continues, CBD will crack the billion-dollar mark in 2020. That growth rate is expected to continue for the next five years.
Brightfield's research determined that 64.5% of the sales come through the online channels. Smoke shops followed with 17.8%. Dispensaries account for 9% of CBD sales.
“One of the most surprising things we found during this research was how many companies are currently operating in the space, and how few of them are generating significant revenue,” said Bethany Gomez, the Director of Research at Brightfield Group. “Essentially everyone is trying to do hemp, but only a handful are doing it well. It’s seen as easy because it can be sold online but, with restrictions on traditional marketing, it is very difficult to connect with your core consumer and even communicate why they need your product.”
The report also examined user experiences with CBD. It found that 66% of CBD users indicated that CBD products are either “more effective” or “much more effective” in relieving their medical conditions than are over-the-counter products. Surprisingly, the study also found that nearly half of patients who use CBD oil stop using standard over-the-counter and prescription medications.
You can find the full report here.