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Throughout modern history, as product popularity increases, so does the number of companies wanting to profit from public interest. The anticipation of profit is a powerful motivator. The current level of public enthusiasm for hemp-derived CBD and the increase in investment opportunities has sparked a phenomenon that many analysts have dubbed “the green rush.”
Calling the increase in projected hemp revenue “the green rush” makes sense for several reasons. Firstly, “the green rush” is a bit of a nod to the gold rush of the mid-1800s. While the gold rush itself was short-lived, the anticipation of financial reward enticed hundreds of thousands of people to join the moneymaking adventure.
The moniker could also be a direct reference of the associations made with the color itself. To many people, ‘going green’ means selecting products that are harmonious with nature; to others, green is simply the color of money.
For those following hemp-derived CBD trends, it’s quite apparent that the interest and enthusiasm for hemp CBD products will not be slowing down anytime soon. Experts predict the industry will continue to thrive and expand.
The Booming CBD Industry
In an interview with Bethany Gomez, Director of Research for the Brightfield Group, Gomez tells readers that CBD sales have grown by more than 80 percent during the past year in spite of hurdles the industry faces. Gomez also notes that nearly half of all CBD customers are learning about CBD from their family or friends. Less than 10 percent of those using CBD are learning about products through advertising1.
The 80 percent growth in hemp-derived CBD sales shows no sign of slowing down. The hemp-derived CBD market is predicted to expand to a $22 billion industry by 2022. This estimate may have stunned financial analysts as it was significantly higher than estimates projected in 2018. When the marketing research firm making the estimate was questioned about its more-than-optimistic projections, the company felt its estimates were likely conservative2.
“We believe the hemp CBD market is going to skyrocket and is here to stay. Readers can rest assured that our experienced analysts and a vast pool of data support these market sizes and growth figures, despite the risks, barriers, and competitors facing hemp CBD products.”
– The Brightfield Group
Hemp-Derived CBD Opportunities are Attracting Big Business
Since the restrictions on industrial hemp cultivation were lifted with the Farm Bill of 20183, there has been a significant upswing in the number of industries incorporating hemp into their business models. Farmers are converting their fields, yoga studios are offering topical creams, skincare companies are infusing their products, and coffee shops are adding CBD tinctures to their specialty drinks.
There is even rumor that a major soft drink company is exploring its options in CBD4. But corporate interest isn’t confined to topical CBD or infused beverages.
Nabisco parent company Mondelez International recently announced they are considering adding CBD to cookies and snack foods. While it is unlikely that CBD-infused Oreos or Cadbury chocolate will be on supermarket shelves anytime soon, the company is “…getting ready, but we obviously want to stay within what is legal and play it the right way,” says CEO Dirk Van de Put.5
For now, companies like Mondelez are likely waiting for the FDA to weigh in before investing in the development of hemp-derived foods or beverages. Although hemp oil supplements do not currently fall under the jurisdiction of the FDA, in some states, including the state of New York, health departments are prohibiting restaurants and other venues from selling CBD-infused foods and beverages6. The FDA could soon be clarifying that issue.
Major Retailers Are Selling Hemp Oil Products
The FDA is holding a public forum on May 31 for stakeholders to express their challenges, share their experiences, and assess the agency’s regulatory strategy. The outcome of the forum may help the organization determine if additional regulation is necessary.
Because of the possibility of changes in FDA regulations, most large-scale retailers carrying hemp-derived CBD products are limiting their inventories to topical CBD products rather than edible products or CBD tinctures. Some of the many retailers offering, or expressing interest in offering, CBD products to their customers include: 7
- Walgreens – offering CBD creams, patches, and sprays in select states
- Sephora – has launched curated CBD sections within their stores
- Unilever – slated to release a line of CBD-infused deodorant
- Neiman Marcus – has been carrying hemp-derived products since January 2019
A Market Vulnerable to Business Shenanigans
Since the market is not currently regulated by a government agency, consumers are at significant risk of purchasing inferior products. One report estimates that up to 70 percent of hemp-derived CBD products are not accurately labeled and contain significantly less CBD than indicated 8.
Reports like this could initially discourage those who might want to try CBD. But there is an upside to this revelation. When consumers understand that the market is littered with companies willing to misrepresent their products, those same consumers then know the importance of learning how to differentiate between reputable CBD companies and those using “hemp oil” as a promotional gimmick. Before investing in any CBD product, consider the following suggestions:
Know How Many Milligrams of CBD Your Products Contain
CBD (cannabidiol) is one of many potentially beneficial cannabinoids extracted from the stalks and stems of industrial hemp. Hemp oil contains CBD. There are a distressingly high number of product vendors selling hemp seed oil as “hemp oil” supplements. Hemp seed oil does not contain CBD. That’s why it’s essential to select products that specify the amount of CBD in milligrams (mg) and verify that the hemp oil is extracted from the stalks and stems of the plant.
Stick with Companies That Provide Third-Party Test Results
For now, there are no federal regulations mandating that companies test hemp extract for purity or potency. Since hemp plants have a natural ability to pull toxins and heavy metal contaminants from the soil, any contaminants will find their way into hemp oil products. Reputable CBD companies know how important product testing is, hence the importance of purchasing from companies that verify the purity and potency of their products. Claims of testing are not enough – expect to see evidence. Select products from companies that provide access to third-party batch test results.
Be Aware of Misleading Packaging and Pricing Gimmicks
Many people are tempted to buy CBD when they find a large bottle of CBD oil for what seems to be an exceptionally low price. It’s important to know that the size of the bottle has relatively little to do with how much CBD you are getting for your money. When purchasing CBD products, particularly CBD tinctures, it’s the concentration of CBD that matters. If you find a 60 ml bottle of tincture for half the price of a 30 ml bottle, the alarm should sound. Take a look at how many mg of CBD that bottle contains, then compare the cost per mg of CBD by dividing the price of the product by the CBD content.
Predicting the Future of Hemp-Sourced Products
A 2016 article in the Hemp Business Journal estimated that the hemp CBD market would grow to a 2.1-billion-dollar market by 2020. Today, the predictions are as much as $22 billion by 2022, and some believe that could double by 2027.
The predictions for the future of hemp-derived CBD are not limited to the income-generating opportunities or even public interest in its health and wellness potential. Hemp is an eco-friendly, renewable resource that we are once again free to grow on American soil.
You will likely find a growing interest in a significant number of hemp-sourced products including hypoallergenic hemp fabrics, hempseed protein, and biodegradable hemp plastics. The legalization of hemp cultivation is also likely to result in additional research projects further investigating the health and wellness benefits of CBD.
Verifying the Quality of Your CBD Purchase
For hemp-derived CBD tinctures, gummies, topicals, capsules, and CBD vape products, visit our website. At CBDistillery, we take pride in overseeing every aspect of product production from cultivation to distribution and every process in between. All CBDistillery products are third-party tested and the results are easily accessible. You can view test results within our product images or by scanning the QR code on every product offered. CBDistillery products are U.S. Hemp Authority™ Certified.
- Green Entrepreneur (2019 March 7) Why the CBD Market Is Likely to Boom for Many Years.
- Cision PR Newswire (2019 February 26) Market Research Company Stands by $22 Billion by 2022 CBD Market Projection.
- Brookings. J Hudak (2018 December 14) The Farm Bill, Hemp Legalization and the Status of CBD: An Explainer.
- Coca-Cola Journey (2018 September 17) Statement on Speculation Regarding Coca- Cola’s Interest in CBD Beverages.
- NBC News. A Lucas (2019 May 02) Half Baked? Oreo-Maker Mondelez is Considering Adding CBD to Its Cookies and Snacks.
- Eater New York. S Dai (2019 February 15) Health Department Slows Down Controversial CBD Crackdown.
- Brightfield Group. C Skelly (2019) Retailers are Going After CBD.
- Boston Globe Media. F Tapp (2019 January 24) Businesses Envision a Boom in CBD the Non-Intoxicating Oil From Hemp