Recreational cannabis is an exciting industry, and the news is always buzzing about its potential. So why are some growers focusing on CBD and the medical market? What do they know that other growers don’t?
Here’s the simple truth: they know that the medical cannabis and CBD market are still gaining momentum and are expected to stay on that trajectory.
In 2021, the global CBD oil market value was 9.86 billion USD, and according to the 2022 Data Bridge Market Research report, the projection for 2029 is sitting at about 136.64 billion USD. The biggest share in that market is currently dominated by North America and is expected to continue on that trend for the projected timeframe.
Cannabis manufacturers are always looking out for what will be the next big consumer focus because that’s where big opportunities can be found. Here’s a look at four areas of interest when discussing Medical Cannabis and CBD.
1. New medical cannabis research bill will open doors in cannabis markets.
Until recently, cannabis research has been inhibited by limited access and complex legal processes. These complications have prevented medical cannabis and CBD from achieving their full potential. But that’s about to change — in early December 2022, President Biden signed into law a new bill that will alleviate some of these roadblocks. It will make it easier to study the potential medical benefits of cannabis, which should lead to the discovery of new applications and formulations.
The bill also instructs the federal government to ensure that an adequate and uninterrupted supply of marijuana is available for research purposes. Within a year, the HHS has been advised to report on the potential therapeutic effects of cannabidiol (CBD) and marijuana. This is on top of having been instructed this last October to start the process of reviewing the scheduling of marijuana. Which is currently classified as a schedule 1 drug, defined as “a drug with no currently accepted medical use”.
This official review of the classification and the research mandate will make it possible to conduct proper clinical trials, improve public perception, and make the industry more palatable to a wider range of investors. Those things could change the American cannabis landscape.
2. The global shift in cannabis policy is looking promising.
Across the map, medical cannabis is reaching new milestones every year. The US medical market alone is expected to increase to 5.7 million registered patients in 2030 and public opinion is increasingly positive as 91% of Americans now favor some type of marijuana legalization.
A wide-lens look at attitudes in regard to cannabis confirms that this is changing on a global scale. According to the World population review, governments are shifting in favor of cannabis or are, at the very least, being more tolerant. Others are exploring medical cannabis as an entry point to the cannabis space.
Some of these countries, including Germany, Australia, Israel, Italy, and the United Kingdom, choose to import the cannabis flower and extracts they need from outside sources. Being able to provide reliable access to high-quality medical cannabis and/or CBD extract can be a big advantage for those looking to explore these opportunities and others yet to come.
3. CBD for cosmetic and personal care will be hitting the shelves in a big way.
In most cases, medical cannabis has seemed to be the initial approach for most governments. Because of this trend, most of what is known about the broader benefits of CBD has been observed during research for more serious conditions. Those observations show that CBD goes beyond the medical context. New research is being done to scientifically support the observed everyday benefits of CBD for cosmetic and personal care.
The expansion of the market for non-prescription personal care and cosmetic CBD products has a forecasted revenue of 8.62 billion USD. Researchers are uncovering many possible applications such as wound healing, Oral care, Acne, Eczema, and pain relief, as seen in the 2020 report Therapeutic Potential of Cannabidiol (CBD) for Skin Health and Disorders. In Canada, after a favorable preliminary investigation, the ‘ Scientific Advisory Committee ’ tabled the Review of Cannabidiol recommending further research to support non-prescription health products containing CBD.
4. CBD Pet Market – We’ve only seen the tip of the iceberg.
CBD has a bright future in improving the quality of life for people, and pet owners want to extend the benefits they are experiencing to their furry companions — their pets!
Therapeutic solutions for pets in the form of CBD oils, treats/ foods, and topicals are already available in stores and online. The global CBD pet market is currently estimated at USD 195.98 million, with North America having the biggest share. As more research keeps emerging, the CBD Pet Market will continue to climb and reach new heights. It is projected to hit USD 1.71 billion by 2030.
CBD is known to help with anxiety and stress, which has been found to be common in animals. It is also reported to be efficient in reducing joint pain and helping dogs with Osteoarthritis be more active. Cambridge University confirmed in its 2022 study that there is “some evidence to support the use of CBD in dogs with osteoarthritis to reduce pain and increase activity”.
To grow or not to grow
Medical cannabis and CBD are sometimes overshadowed by recreational cannabis for adult use. It can be an exciting and colorful space that might even seem glamorous to some. There is certainly money to be made and some growers have undoubtedly been dazzled by dreams of high-potency podiums. But as we’ve seen, CBD is still a growing market.
The future holds many potential advances in medical applications and new ways to incorporate CBD into our daily routines. Researchers and manufacturers will need a steady supply of high-quality materials to conduct their studies and product development efforts. This will increase the need for raw materials from growers.
With all this potential on the horizon, it is easy to see why some growers are lasered in on Medical Cannabis and Hemp. What will your enterprise do? Leave all that CBD revenue to someone else or watch your profit margins grow in tandem with the CBD market?
This is an original piece of work from Janice Gauvin, B2B writer. Find Janice on LinkedIn.