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Despite Confusion Over CBD, Sales Projected to Grow

The source and legality of CBD products can cause confusion to consumers, but product sales are expected to reach $20 billion in the US by 2024.

Cbd Diffusing Oil

According to PMMI Business Intelligence’s white paper, “Cannabis Market Update: Unique Packaging Challenges for THC and CBD Products,” CBD is one of the more confusing aspects of the cannabis market for consumers. CBD can be produced from either hemp, which contains less than 0.3% THC and is less regulated, or flowering marijuana plants, which have THC levels above 0.3%.

In 2018 the growth, processing, transportation, and sale of hemp became fully legal in all 50 states. In Canada, hemp has been legal for decades. The legality remains confusing, however, as there is currently no legal way to sell ingested hemp-derived CBD products outside of dispensaries. Creams, salves and balms are legal to sell, but CBD as an ingredient in food (including pet food) or beverage technically remains illegal to sell in a retail setting.

It is expected that the FDA will review this process in the US, and in Canada, Health Canada is currently reviewing the use of CBD in food and beverages and is expected to release guidelines legalizing and regulating the practice in the future. “Our greatest concerns are the uncertainty of the FDA regulations on CBD in the United States,” said one Global Product Specialist of a CBD Cultivator and Ingredient Supplier.

The confusion around the types of CBD and the legality of CBD in certain products has not hampered growth, however, as sales of CBD products are expected to reach $20 billion in the US by 2024. According to the report, “The vast majority of this growth will occur in the retail-CBD market at large chain establishments, which accounted for 57% of all CBD sales in 2018…With only 4% of total CBD sales in 2018 being attributed to dispensaries, it appears that the future of retail CBD is bright.”

Source: PMMI Business Intelligence “Cannabis Market Update: Unique Packaging Challenges for THC and CBD Products

Download the FREE White Paper below.

Make plans to visit PACK EXPO International in Chicago, November 8-11, to see on-trend Cannabis processing and packaging machinery and materials.

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