According to BDS Analytics and Arcview Market Research, the US CBD market consisting of cannabis- and hemp-derived CBD products is predicted to surge from $1.9 billion in 2018 to $20 billion by 2024, a compound annual growth rate of 49%.
“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.”
Highlights from the research:
- When combined with THC products, the CBD market will create a total market of $45 billion for cannabinoids by 2024.
- CBD product sales in dispensaries since 2014 have grown at an even faster rate than overall sales in dispensaries.
- CBD sales in dispensaries are a leading indicator of the direction of where the general hemp-derived CBD product market is headed. Within the dispensary channel, the share of high-CBD (as opposed to high-THC) product sales has been increasing rapidly. In markets tracked by BDS Analytics’ GreenEdge™ Platform, which powers the company’s retail sales tracking service, dispensary sales of CBD accounted for 11% of total sales in 2018—a considerable increase from just 5% in 2017.
- 66% of hemp-derived CBD consumers in the US agree with full federal legalization of cannabis, with 90% believing that marijuana has medical benefits, largely driven by the belief that it can relieve pain.
- The CBD consumer profile is also notably different from that of the cannabis consumer: BDS Analytics reports that CBD consumers have nearly a 1:1 gender radio, whereas only one-third of cannabis consumers are female.
- CBD consumers are an average age of 40, are of higher education, and are more likely than non-consumers to be employed full time.
Photo: Jose Luis Sanchez Pereyra via Unsplash
