CBD is having a moment and its rising popularity shows no signs of stopping. The CBD industry is worth $1 billion (according to the Wall Street Journal) thanks to the rising consumer demand for oils, tinctures, topicals, and edibles. By 2025, the CBD industry could easily reach $16 billion, according to Forbes. This is good news for investors looking for their next move. Here’s why joining the CBD bandwagon is financially worth it.
1. CBD’s popularity is skyrocketing
You can find CBD products almost anywhere in the United States, from pharmacies and smoke shops to gas stations and fine retail stores. CBD’s popularity is due to a lack of psychoactive properties from THC, making it a far-less stigmatized alternative to marijuana. Because CBD lacks THC, it doesn’t cause a high that affects your judgment or ability to work. As more consumers become aware of the potential health benefits of CBD, the focus have shifted on how CBD can be used to treat mental health issues.
2. Passage of the 2018 Farm Bill
The passage of the Farm Bill in December 2018 legalized industrial hemp cultivation across the United States. Legalized hemp is defined as cannabis containing 0.3 percent THC levels or less. The bill also allows the interstate movement and commercial sale of hemp-derived products, including CBD products. The FDA prohibits the packaging and labeling of CBD products with false medical claims and is strict about the clear labeling of contents.
Brands can’t break into the latest market trend without reliable CBD manufacturers. Superior Supplements is a top private label supplement manufacturer that offers clients customized turnkey CBD products of the highest quality ready for market. All of Superior Supplements CBD products are manufactured in a cGMP certified facility according to regulatory and federal guidelines, so you can rest assured that your new product line will be manufactured with the best practices.
CBD is derived from hemp plants, which are the raw materials used to derive CBD oil. The Farm Bill created a demand for CBD farming businesses to grow, process, and market hemp. Hemp has become such an in-demand cash crop that even tobacco farmers are switching over to hemp production.
3. CBD is considered safe for human consumption
The World Health Organization deemed CBD safe for human consumption in September 2017. CBD is considered to have a good safety profile and it has no known health-related consequences due to recreational use. There is promising evidence (according to studies) that CBD is useful in the treatment of two rare forms of epilepsy, Lennox-Gastaut syndrome, and Dravet syndrome. It’s also seen to be effective in the treatment of pain, arthritis, stress, anxiety, and depression, and could be an alternative to medical marijuana (however, it’s important to note that more research still needs to be done — but the current studies conducted are promising).
4. Take advantage of the increasing CBD market size
Thanks to the skyrocketing popularity of CBD, it’s a good time to take advantage of the increasing CBD market size. CBD is a smart investment strategy given the amount of publicly traded CBD companies in the market. A financial advisor can help you select top-performing stocks ideal for asset allocation that will boost your portfolio.
5. The profitability of CBD oil businesses
There’s big money to be found in CBD oil companies. The consumer landscape has shifted from those using cannabis to treat a medical condition to incorporating CBD into daily health and wellness routines. Hemp flower and CBD oil are the two most popular CBD products on the market. CBD oils can be used in vape pens, as tinctures, as infusions in food products, and as topical creams. CBD has alleged anti-inflammatory properties useful in treating chronic pain, and low THC levels make CBD a functional way to treat anxiety and depression. Top CBD oil companies who understand how to effectively market CBD oil to their target market can make millions in profit.
The CBD bandwagon shows no signs of slowing down. It’s a good reason to learn the CBD market and see how far your personal capital can go.