You can buy CBD cookies and chips, CBD toothpaste, CBD toilet paper, and even a bag of CBD condiment pumpkin candy made by local goddess Martha Stewart.
CBD is an abbreviation for cannabidiol, which is one of the many cannabis compounds found in marijuana. It is derived from cannabis but lacks the psychoactive component tetrahydrocannabinol (THC) responsible for the “high” cannabinoid.
In the past decade, CBD oil has exploded in popularity and been marketed as a way to treat everything from anxiety and muscle aches to acne and serious medical ailments like cancer.
While most of the health benefits associated with CBD products are not backed by conclusive data, selling CBD oil can be a profitable business opportunity. The demand is there while the lack of psychoactive features makes it immune to the complex regulatory networks that come with selling marijuana in the states where it is legal.
As a result, many major brands have marketed products with CBD as a way to stay in touch with popular culture and mitigate social attitudes toward cannabis use.
The madness of CBD does not fade
As more and more states move to legalize marijuana, commercial interest around the 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 grow to $15.66 billion by 2028.
The 31.2% compound annual growth rate shows how this growth will occur even though, in some countries, CBD products are already around every corner.
North America dominated global demand with 47% of the global market share in 2021, but many countries around the world are also seeing increased demand.
Outside of English-speaking countries such as the United States, Canada, and Australia, Insight’s partners have identified thriving CBD markets in Germany, France, Japan, South Korea, and Brazil.
Some of the largest CBD companies in North America include Aurora Cannabis ACB, NuLeaf Naturals, Elixinol Wellness Limited, and Canopy Growth CGC.
The authors of the Insight Partners report wrote: “Therapeutic benefits of CBD also provide demand opportunities for health and wellness goals, and are thus driving the growth of the global CBD oil market.” “Furthermore, the growing acceptance of cannabis among the population is also increasing the demand for cannabis-infused consumer products.”
The Mysterious World of CBD Marketing as a Cure for Everyone
While empirical studies have shown that CBD works to relieve pain around a number of medical conditions, its benefits are often too exaggerated to get into a massive marketing trend.
The Food and Drug Administration regularly sends warning letters to companies that attribute unproven health claims to CBD or overstate the amount of active chemicals in their products.
Although 2022 is not over yet, the number of companies receiving such notices is more than double what it was in 2021.
But even while the line between what CBD does and how much a placebo effect is currently being researched, the demand is certainly there. Besides the oil itself, foods and other consumer products will grow more “attention-catching” products like CBD-infused bed sheets and yoga pants.
“Customers often prefer sophisticated, discreet, and attractive ways to consume their CBD supplements, which creates many options for selling CBD foods in various formats, such as beverages, gum, and chocolate,” the study authors wrote.