The CBD market is growing rapidly, and Mike Sill, the 26th CEO and co-founder of Sunday Scaries, a CBD company with stress-relieving products, offers an eye-opening view of what's driving this growth. As founder and owner, he shares his opinion on the crucial development issues in the industry, along with predictions about what will happen. CBD companies currently offer a wide range of products, but this diversity will increase as more companies introduce products that hyperconcentrate on each of the more than 100 minor cannabinoids found in the hemp plant. Formulations focusing on cannabinol (CBN), cannabigerol (CBG) and other compounds and mixtures will be developed for specific use cases.
Despite being legal at the federal level, CBD companies still have problems obtaining capital and standard services from banks and other financial services institutions. The FDA classification limits the ability to market CBD as a safe and effective substance. In addition, more precise federal regulation of product quality will be a rising tide that will lift most boats, as bad players abandon fishing in order to survive the fittest. Once companies are able to market CBD as a dietary supplement, it is expected to reach the mainstream of physical retail.
In particular, large chains will offer a range of topical and ingestible products in various product categories and applications. This new distribution could greatly expand the market and benefit several components of the supply chain, including hemp producers and laboratories that carry out the extraction, distillation, crystallization and isolation of CBD from plants. A particular benefit will be to encourage more quality laboratories to participate in the CBD game, as many centers are now hesitant to deviate from their core competencies. The price of commodities will also increase dramatically as retail demand grows.
Large companies have been hesitant to adopt CBD due to its “Wild West” market initially struggling to grow. But once the regulatory landscape clears and stabilizes, many corporate giants will seek to diversify their product lines with CBD and add new products that open up avenues for growth. Companies like Procter & Gamble, Johnson & Johnson, Coca-Cola, Unilever and more can get in the game by acquiring current leaders in the CBD market. An historic record in public education on cannabinoids will accompany the addition of CBD so consumers can feel safer and more secure when buying regulated products in a smart way.
Many CBD companies are currently self-regulating but will be forced to improve their quality assurance and compliance efforts to survive. And suppliers that already sell high-caliber products will ultimately benefit from their investments in R&D and production which have necessarily reduced ROI. The future of CBD is promising but still depends on crucial developments. The demand for traditional cannabis products derived from CBD is high due to its healing properties - this is the main factor driving the market. In addition, CVS Health has decided to offer topical CBD products in its 800 stores and Walgreens Boots Alliance sells products containing CBD in 1,500 of its stores in the US.
In the B2C segment, the hospital pharmacy subsegment is expected to experience lucrative growth due to an increase in companies establishing exclusive collaborations with retail pharmacies. Preclinical studies show cannabinoids' active participation in maintaining skin homeostasis including inflammation, barrier formation and regulation; hence the interest in the potential of CBD as a topical product to promote skin well-being. For example, resin prepared for winter can be distilled to produce a purified CBD distillate without terpenes or further refined by crystallization or chromatography to produce a CBD isolate with 99% pure CBD and without other cannabinoids. Market competition is expected to intensify during the forecast period as adoption of CBD-infused products is increasing worldwide. Rigid regulations along with significant costs associated with CBD drugs can also hinder business growth rate. The presence of large numbers of health-conscious people in Europe has led to growing acceptance of CBD-based products; this along with major manufacturers' presence and approval by US authorities has opened up opportunities for research. Numerous initial research studies indicate that CBD could offer a variety of potential wellness benefits.
North America continues to lead the market with 40% of global market share but it may not dominate for long due to THC contamination found above lowest level effects observed in 25% of samples. In this rapidly expanding market, it is clear that there are many opportunities for growth but also many obstacles that need to be overcome before we can see its full potential realized.
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