4 CBD Market Trends All Entrepreneurs Should Be Aware Of
From consumption methods to methods of payment, the latest on this booming industry.
According to recent predictions by BDS Analytics, the CBD market will reach somewhere close to $20 billion in sales by the year 2024. That’s a 49 percent compound annual growth rate, a bit shocking for a substance that was almost entirely outlawed less than a decade ago. Here are three profitable trends in the CBD market that entrepreneurs should know about, especially those already building products and companies in the "CannaTech" space.
Strains With Almost No THC
Roughly 60 percent of Americans live in a state where marijuana products have been legalized for recreational and/or medical use. But, of course, many of those consumers are still nervous about using cannabis themselves. Right on cue though, cannabis growers are creating strains with little or no THC so users can enjoy medical benefits without getting intoxicated.
Cannabis is becoming a commercialized product, which means that, like GMO foods, its genetic composition is being altered to enhance qualities and create effects that consumers will pay for. People who have no interest in the sensation of getting high can now enjoy the health benefits of cannabis without any intoxication, a trend that is likely to encourage new, previously resistant consumers to purchase THC-less strains of cannabis for help with different disorders.
Various Consumption Methods
Smoking is the traditional way of ingesting cannabis, but as with any commercialized product, the free market innovates other ways of consumption to grow demand. In the case of cannabis, this includes vape pens, candies, brownies, water-soluble oils and even lotions. For example, Viridian Pharmaceuticals is rolling out a cream-based product called Notion for users who don’t want to smoke or orally ingest CBD, thus not getting intoxicated as long as THC levels are low or non-existent. Similarly, GrowPacker, a B2B cannabis manufacturer, offers the benefits of CBD by way of lotions and cosmetics.
All of these differing modes of consumption allow entrepreneurs to create a variety of CBD products, brands and marketing messages.
Despite widespread legalization, many big banks still won’t process disepensary payments because recreational marijuana is remains illegal under federal law. Cannabis also carries the decades-old stigma of being a high-risk industry. Thus, payment processors charge expensive fees and require ID verification that can intimidate and inconvenience consumers. The latest developments to counter these obstacles include different cashless payment solutions, ranging from mobile apps to blockchain projects that put CannaTech products first.
In 2017, Americans spent more than $67 billion on their pets. Clearly, the pet market is already a lucrative one for entrepreneurs, but there are a lot of health concerns surrounding giving CBD to animals. No harmful consequences have been documented yet, but vets urge pet owners to be cautious until there’s more definitive research on the topic. If this trend does continue, though, it will quickly create an opportunity for entrepreneurs who market and sell items such as CBD-infused dog bones, chew toys and balls of yarn -- all subject to laws and regulations of course.
It’s hard to tell exactly what will come of the CBD industry in the next few years, but as with most potential gold rushes, things are moving fast and everyone is working to get a piece of the pie. Will you be one of them?
Entrepreneur Leadership Network Writer