(Newswire.net — August 1, 2019) — A 2017 report by the Hemp Business Journal shows that the US CBD flower market will be a $646-million economy by 2022. According to the report, that’ll be a massive jump considering that the market share was $190 million two years ago. However, this report tends to differ with the latest Brightfield finding.
According to Brightfield, the CBD flower market share will be a $22-billion economy by 2022. Largely, it’s thanks to the passing of the 2018 Farm Bill. It makes sense to think that the report by Brightfield is justified since the Hemp Business Journal report was documented before the passing of the 2018 Farm Bill.
What the 2018 Farm Bill Means for the CBD Flower Market
Following the adoption of the 2018 Farm Bill, CBD farmers can now grow hemp legally and freely. Manufacturers are also allowed to extract CBD oils from hemp freely. However, they are expected to observe a few guidelines during the extraction and production of CBD oil. One major guideline is the THC levels. They are expected to ensure that THC levels that do not exceed 0.3%. Instead of having high THC concentration, the products need to have more CBD.
The 2018 Bill did not just open opportunities for industries dependent on CBD oils but also textile industries and other manufacturing industries, including producing fiberboards, banknotes, molded plastics, upholstery, and animal bedding. The other beneficiaries are industries that depend on CBD oil for the manufacturing of oil products like salads, essential oils, industrial oils, and therapeutic CBD oils.
It’s not just the production sector that has benefitted from the 2018 Farm Bill. The medical research sector and the consumer community have also benefited. Consumers, for example, can now access legal CBD flowers just by ordering it online on a store like IHF Hemp Flower. Consumers just need to be of the right age (18 or above) to make an order. The ease of making online orders has seen so many CBD consumers flock online CBD stores. In the case of medical research, the various departments responsible for testing CBD products can now do it freely. This means more certified CBD flower.
The Industrial CBD Farming Sector
According to the National Hemp Association founder MichaelBowman, 1000-1600 hemp plants are grown per acre of land for CBD oil purposes. This is in comparison to about 400,000 hemp plant grown for textile, specialty paper, and bioplastics per acre. Michael Bowman argues that CBD plants need more tendering and care. As a result, more space needs to be allocated to individual plants. But since CBD plants demand more market value than hemp plant grown for industrial applications, most hemp growers don’t mind concentrating on CBD plants.
How the Investors See It
After the passing of the 2018 Farm Bill, investors in the CBD sector are now free to put their money in a legitimate sector. They no longer have to hide or feel guilty for engaging in a market that’s considered ‘illegal’ in the eyes of the law. In the last one year, more investors have been injecting money into the sector as they target the growing number of CBD flower consumers. With CBD oil being used for different applications, the need for the product improves each day. So, investors who put their money in this booming sector are likely to have it back within the shortest time possible.
The Global CBD Market Share
Different parts of the world have experienced different market trends in CBD sales over the last few years. As already mentioned, the US CBD economy is projected to reach the $22-billion mark by 2022. At the same time, the market sales share in Canada is expected to be $4.7 billion. Based on a Bloomberg report, 2019 will see the market share of CBD surpass that of marijuana. This is because more products are made from CBD than marijuana.
Final Thoughts
Considering that the CBD market operates under the mercy of the law, it now appears like the law is smiling on the sector. This is following the signing of the 2018 Farm Bill. Though it’s hard to give a definite projection of the market share of this sector in the future, all reports indicate that the sector is booming. So, expect it to enjoy more sales now and in the future.