According to a recent Nielson report, cannabis sales are set to skyrocket. Total sales for 2018 are estimated to be a respectable $8 billion, even with cannabis only being legal in 11 US states and Washington, D.C. The prediction is that sales will be five times higher, reaching $41 billion by 2025.
The future looks strong as more states adopt legalization like Illinois and Michigan and hemp-derived CBD is reaching more and more retail locations. They estimate that 75% of the US adult population will have access to legal cannabis by 2025.
The rise of cannabis isn’t good news for every sector. 20% of regular beer drinkers anticipate spending less on beer in favor of consuming cannabis. Almost half (41%) of adults trying to quit smoking would think about cannabis as an alternative. 35% of cannabis interested adults will consider cannabis to treat back and neck pain as an alternative to over the counter medications.
Legalized cannabis refers to products made with any form of the Cannabis Sativa plant. That means marijuana and hemp. Marijuana being raised for its active ingredients THC and CBD, and hemp being grown for hemp oil, seeds, and CBD. The CBD extracts that come from Hemp need to contain less than .3% THC.
Every sector of the industry is set for this explosive growth. Hemp’s big win was in December of 2018 with the passing of the Farm Act. This act officially welcomed hemp as an agricultural commodity. The FDA still restricts products where the CBD is ingested or therapeutic topical applications. Cosmetic products are the only products approved at this time.
As national distribution chains ramp up the sale of hemp-based products, businesses are stepping up to chase the opportunity. The number of marijuana brands in 2014 was 166 in two states. By 2018 that number was 2650 in four states.