You can purchase CBD cookies and potato chips, CBD toothpaste, CBD toilet paper and even a bag of pumpkin spice CBD gummies made by none other than domestic goddess Martha Stewart.
An acronym of cannabidiol, CBD is one of the numerous cannabinoid compounds found in marijuana. It is derived from hemp but lacks the psychoactive ingredient tetrahydrocannabinol (THC) responsible for cannabis' "high."
In the last decade, CBD oil exploded in popularity and has been marketed as a way to treat everything from anxiety and muscle aches to acne and serious medical illnesses such as cancer.
While most health benefits associated with CBD products are not backed up by conclusive data, selling CBD oil can be a lucrative business opportunity. The demand is there while the lack of psychoactive features makes it immune to the convoluted regulatory webs that come with selling marijuana in states where it is legal.
Many bigger brands have, as a result, marketed products with CBD as a way to stay in touch with popular culture and loosening social attitudes toward cannabis use.
The CBD Craze Is Not Dying Down
As more and more states move to legalize marijuana, the business interest around growing legalization has also seeped into the CBD market.
Private equity firm Insight Partners estimated the global CBD market to be worth $2.42 billion in 2021 and to skyrocket to $15.66 billion by 2028.
The CAGR rate of 31.2% shows just how such growth will occur despite seeming as if, in certain countries, CBD products are already on every corner.
North America dominated global demand with 47% of the global market share in 2021 but many countries across the globe are also seeing growing demand.
Outside of English-speaking countries like the U.S., Canada, and Australia, Insight Partners identified burgeoning CBD markets in Germany, France, Japan, South Korea, and Brazil.
Some of the largest North American CBD companies include Aurora Cannabis ACB, NuLeaf Naturals, Elixinol Wellness Limited and Canopy Growth CGC.
"The healing benefits of cannabidiol also provide opportunities for demand in health and wellness objectives and, therefore, are driving the global CBD oil market growth," write the Insight Partners' report's authors. "Furthermore, the rising acceptance of cannabis among the population is also boosting the demand for cannabis-infused consumable products."
The Murky World Of Marketing CBD As A Cure-All
While empirical studies have shown CBD to ease the pain around a number of medical conditions, its benefits are also often vastly exaggerated to get in on what is a massive marketing trend.
The Food & Drug Administration regularly sends out warning letters to companies that attribute unproven health claims to CBD or overstate the amount of active chemicals in their products.
Even though 2022 isn't over yet, the number of companies that received such notices is more than double what it was in 2021.
But even as the line between what CBD does and how much of that is a placebo effect is currently being researched, the demand is definitely there. Along with the oil itself, food and other consumable products are going to grow more than "gimmicky" products such as CBD-infused bedsheets and yoga pants.
"Customers mostly prefer sophisticated, discreet, and appealing methods of consuming their CBD supplements, creating many options to sell CBD edibles in various formats, such as beverages, gummies, and chocolate," write the study's authors.
