08 Jan 2020 Predictions for the CBD Industry
The CBD space saw considerable growth in 2019. But now for the big question: What does 2020 hold for the CBD industry? Find out what’s next for CBD.
Roughly a year ago the 2018 Farm Bill was signed into law, clarifying the legality of hemp and hemp derivatives and opening the doors for general retailers to distribute CBD products. Since then, CBD has taken an even stronger hold with the American public, and in 2020 will continue to generate new products and sales.
Still, the industry could face new challenges, with the United States Food and Drug Administration (FDA) expected to release CBD product regulations and evolving expectations from CBD consumers.
In these early days of the New Year, we foresee the following 10 trends dominating the CBD landscape in 2020.
Further CBD Industry Growth
The CBD industry will surely experience more explosive growth in 2020. According to the Brightfield Group, CBD sales in the U.S. reached over $4 billion in 2019, and will soar to $23.7 billion by 2023. Americans continue to become more interested in CBD, with online search rates for the compound increasing by more than 100% each year over the past three years.
Explosive Growth for CBD Cosmetics and Skincare Products
2020 will be the biggest year yet for CBD skincare and cosmetics. The booming CBD industry, combined with the skincare industry’s drive to innovate will lead to a strong year for entrepreneurs in the CBD cosmetics and skin care sectors. It doesn’t hurt that the global cosmetics industry is also seeing growth, with Coherent Market Insights projecting a compound annual growth rate of 4.37% between 2019 and 2027.
Broader CBD Audience
The stigma around cannabis consumption will continue to decrease in 2020, and the normalization and elevation of CBD will allow it to be brought to new audiences.
Already, nine out of 10 Americans favor the legalization of cannabis, according to a recent Pew research study. As the U.S. continues its incremental march toward full cannabis legalization, it will further create a healthy acceptance and awareness of all compounds, including CBD.
This trend will no doubt impact baby boomers, who have historically been hesitant toward cannabis, but will come around to seeking hemp-derived CBD oil products that will help them feel better and support their health goals.
New CBD Regulations Will Shape Industry
CBD regulations are on the horizon, and stricter enforcement is likely to shake up the CBD market by allowing legitimate companies with rigorous manufacturing and testing processes in place to step into the spotlight.
The U.S. Food and Drug Administration (FDA) continues to contemplate hemp CBD regulations, and in the coming months may make an announcement as to how CBD products must be made and distributed. The FDA has already clamped down on CBD businesses that have added the compound to food or made medical claims.
If and when the FDA releases regulations this year, many of the existing CBD companies will not be able to withstand the challenges to keep up with regulations. This will also make it difficult for smaller players to enter the market, and the CBD industry field will likely have fewer players. An increased focus on regulatory compliance and production quality and learning from others’ mistakes will prove invaluable.
What will emerge, however, is a tighter, higher standard for growing and manufacturing practices as regulatory frameworks improve. Higher quality and safety standards will separate the responsible manufacturers and distributors from those without any real experience or simply seeking a quick profit. Once the dust settles, manufacturing and testing regulations will leave a more stable and more sustainable industry.
Easier Time Finding Banks and Online Selling Platforms
CBD companies have faced great challenges in finding online selling platforms and banking services, but that will change in 2020. As the industry continues to become less precarious, more companies will be willing to host and promote legal CBD-related companies and products.
Dawn of CBD Advertising Opportunities
Even though hemp is legal, many vendors have balked at working with hemp and CBD companies, worried they’ll put themselves at risk of penalties for partnering with businesses operating in the cannabis space. That changes in 2020. Facebook has already started opening itself up to advertising from some CBD companies, and it and other platforms will continue to relax their advertising policies on legal hemp CBD products.
More CBD in Health Centers
With the growing acceptance of CBD as a safe and natural wellness product, more health professionals are expected to step forward and embrace the balancing benefits of CBD oil.
Scientists are only starting to understand how CBD naturally promotes balance in the body, and yet a large number of people who have only recently become open to cannabis are looking to see how they can use CBD products for wellness and health purposes.
In 2020, you’re going to see many health professionals, from doctors to physical therapists to personal trainers, utilizing CBD oil in their services. Hemp CBD has already started to find its way into chiropractor’s offices and health stores and will become more and more popular.
Focus on Full-Spectrum Utilization
CBD is just one of the hundreds of naturally occurring chemicals in the hemp plant, and already, marketers and the media have started talking about other cannabinoids that have shown potential functional benefits, such as CBN, CBD, CBG, and THCV.
Even as there is still much to learn about these compounds, a special focus will continue to be placed on full-spectrum CBD oil, the unadulterated extract of the hemp plant that contains all of its active compounds, including cannabinoids, terpenes, nutrients, and more. Expect in 2020 that most CBD products sought after by consumers will contain full-spectrum CBD oil.
Increase in Research on Cannabinoids
The passage of the 2018 Farm Bill roughly a year ago cleared the way for research into hemp-derived cannabinoids, including CBD. Researchers in 2020 have an easier time conducting rigorous, double-blind, placebo-controlled studies of cannabinoids. Plus, with more public attention to CBD and other cannabis-derived cannabinoids, scientific research is positioned to really blossom.
Consumers Will Get More Particular
Now more familiar with CBD, consumers in 2020 will have higher expectations on traceability of CBD products from farm to shelf. They will care about the quality and safety of the CBD products they buy, and will opt for more premium products that provide assurance through Certificates of Analysis (COA) that they’re natural and safe. Consumers will want to know about the hemp plant used to source the product, the farming practices used, and the composition of the product.
More About CBD
In 2020, keep an eye on the CBD industry. The cannabinoid market is poised for another great year, even as it experiences growing pains and finds its footing among regulatory uncertainty.