If you’ve been paying attention to the news lately, you’ve probably heard much buzz about CBD oil. But what is it? Where does it come from? And why are so many people turning to this product for its many uses and products? Here we provide a comprehensive overview of CBD oil and the growing market for this increasingly popular product.
What is CBD Oil?
CBD stands for cannabidiol, one of over 100 cannabinoids found in cannabis plants. Unlike tetrahydrocannabinol (THC), another prominent cannabinoid, CBD is non-psychoactive, meaning that it will not produce any “highs” or other mind-altering effects.
Where Does CBD Come From?
Most people associate cannabis with marijuana plants due to their psychoactive effects. However, there are two types of cannabis—marijuana, and hemp—that each contain different levels of cannabinoids like CBD and THC. Hemp plants have higher concentrations of CBD than THC, while marijuana plants contain the opposite ratio. As such, most commercially available CBD products are derived from hemp plants rather than marijuana plants since they have shallow traces of THC and no psychoactive effects.
What Makes Up the Growing Market for CBD Oil?
In recent years, the growing market for CBD oil has seen an explosion in popularity due to its variety of products and ease of use. There are now more companies than ever producing various products, including tinctures, oils, balms, salves, and even edibles. These products come in various forms, such as capsules or liquids that can be taken orally or applied topically to help with everything.
Additionally, more states across the U.S., Canada, and Europe have begun legalizing marijuana use recreationally and medicinally despite its federally illegal status in many countries worldwide – further fueling the demand for these products on a global scale.
Status Of Current CBD Oil Market 2024
The Cannabidiol (CBD) oil market is estimated to hit nearly $2 billion by 2024 with a compound annual growth rate of over 30%. The FDA has not approved CBD oil as a drug, beverage ingredient, or medical treatment, so health claims regarding its effectiveness are primarily anecdotal. However, there are currently more than 100 different CBD products on the market ranging from topicals to edibles, that use CBD oils as an ingredient.
Many of these products have become famous for their effects on wellness without the psychoactive effects associated with cannabis-derived THC. In the coming years, we can expect more widespread legality and regulation of hemp-based CBD oil, which will shift how this product is perceived and consumed.
CBD Oil Market Growth In Upcoming Years
The CBD oil market is forecasted to experience substantial growth over the next five years. Driven largely by consumer desire for natural healthcare products and growing public awareness, the sector is projected to outpace the overall retail market in terms of growth. Many CBD oil companies are creating new and innovative ways to add the compound to their existing product lines and launching dedicated product lines, further boosting market revenues.
A critical factor in this strong growth trajectory is sustained consumer confidence as more people move away from traditional pharmaceuticals and seek natural alternatives. This trend shift places the ‘uberization’ of the healthcare space firmly on the horizon, allowing consumers greater access to many CBD-infused healthcare options like never before.
Significant Factors In The Growth Of The Market for CBD Oil
1. Legalization of Hemp
The 2018 Farm Bill legalized hemp nationwide and removed it from the list of controlled substances. This paved the way for an explosion of companies selling products made from hemp—and for these companies to advertise their products without fear of legal repercussions. Since then, numerous states have also passed laws legalizing recreational marijuana use, further spurring demand for CBD products.
2. Increased Public Awareness
Legalizing hemp has also increased public awareness about its potential benefits and uses. People are increasingly turning to CBD oil and demand will continue to rise as more people become aware of its potential benefits.
3. Online Shopping Platforms
Thanks to online shopping platforms like Amazon and eBay, it’s now easier to find high-quality CBD oil products. These sites usually offer competitive prices and free shipping on many items. These sites make it much simpler for customers to find exactly what they’re looking for without searching through countless brick-and-mortar stores or online retailers.
4. CBD Oil Pricing In The Global Market
CBD oil has been gaining traction in recent years as an alternative supplement and a profitable product for businesses. Since CBD oil is not regulated, sellers and producers have no uniform pricing worldwide, leading to a range of prices for consumers. Some countries have guided CBD oil pricing, like Brazil, which introduced a maximum threshold of 10% for THC (the psychoactive compound within cannabis) and mandated that CBD prices scale up with increased levels of purity.
There is no single answer when it comes to understanding global CBD oil pricing. Within Europe, some countries have established their own rules concerning THC percentages and require certifications or licenses to sell or produce CBD.
In addition to this legislative landscape that influences pricing, many other factors come into play; varying raw material supply costs, production methods, cost of freight, and taxes are just some of the variables that can generate differences in cost between one market and the next.
Conclusion
The growing market for CBD oil has seen tremendous growth in recent years due to its potential beneficial properties, along with increased legalization efforts across many jurisdictions worldwide. With so many options now available on the market, from tinctures to edibles and creams, there’s something out there for everyone who wants to explore this emerging industry further!
If you are also an alcohol lover then you must know how long after taking cbd oil can i drink alcohol. If you’re curious about all the hype, make sure to do your research before trying any product containing cannabidiol. That way, you can make an informed decision about whether or not this is right for you!
