The cryptocurrency industry isn’t the only industry growing at record pace. A recent study by Grand View Research suggests that the global cannabidiol (CBD) market size may reach USD 13.4 billion by 2018.
According to the research group, the CBD industry will expand at a compounded annual growth rate (CAGR) of 21.2% between 2021 and 2028. That’s quite an impressive CAGR rate, considering that CBD is yet to be legalized worldwide.
So, if you’ve always harbored ambitions of investing in the lucrative CBD industry, now is the time to take the plunge.
In this post, we review the primary reasons behind the sustained growth in the CBD industry.
1. CBD Has Numerous Health Benefits
Cannabidiol’s many healing benefits are the primary reason behind the industry’s sustained growth.
CBD is considered the most effective analgesic substance obtained from cannabis. According to research, the Weedsmart and other CBD-containing products treat pain by stimulating various pain-signaling receptors in the endocannabinoid system, such as vanilloid receptors.
Cannabidiol also contains powerful anxiolytic properties, which makes it an effective remedy against anxiety. CBD relieves anxiety by increasing the body’s access to its own neurotransmitters associated with happiness and positivity, such as serotonin.
People living with sleep disorders like insomnia can also benefit immensely by incorporating cannabidiol into their lifestyle. CBD is noted for its sedating properties. When consumed, the compound aids sleep by shortening sleep latency. And once you fall asleep, CBD ensures that you sleep for longer by reducing rapid eye movement (REM) sleep, the sleep phase associated with lucid dreaming.
Other medical issues that cannabidiol may relieve include nausea, seizures, inflammation, metabolic issues, etc.
2. Many Countries Are Legalizing CBD
CBD enjoys higher legal approval compared to other popular cannabis compounds, such as the psychoactive tetrahydrocannabinol (THC). It’s now easier to purchase CBD-based products around the world than it was a few years ago.
In the United States, hemp-derived CBD products are legal in all fifty states. The only condition is that such products must contain a maximum THC concentration of 0.3%. CBD is also legal in Canada and numerous countries in the European Union.
Increasing CBD legalization can be attributed to the growing body of studies citing the compound for its healing properties. But as an aspiring CBD trader, it’s advisable to check your local cannabidiol laws before setting up a CBD business.
3. CBD Products Don’t Induce Euphoria
The cannabis plant, as a whole, contains powerful medicinal properties. Besides its healing benefits, marijuana is also famous for its mind-altering abilities.
Initially, many people who expressed reservations about cannabis products cited the plant’s euphoria-inducing properties. However, that was long before it emerged that the majority of marijuana’s pharmacologically beneficial extracts also happen to be non-psychoactive.
The realization that users could benefit from CBD’s healing properties without getting stoned attracted more people to the compound. Even better, recreational marijuana users can also benefit immensely from CBD. That’s because several CBD products usually contain significant traces of THC and other psychoactive chemicals.
4. There Are Many Delivery Methods
Traditionally, cannabis extracts were mainly consumed by smoking. But the negative publicity associated with smoking discouraged many would-be CBD users.
While smoking remains one of the most popular ways to consume cannabis products, it isn’t the only way to administer cannabidiol. Additional CBD delivery methods include;
- Oral tinctures intended for spraying sublingually
- Topicals intended for external application
- CBD edibles
- Vaping products intended for inhaling
The fact that prospective CBD users can choose their preferred delivery method has made it possible for more people to integrate cannabidiol into their health routines. That’s particularly true for people who are averse to the idea of smoking.
5. Celebrity Endorsements Are Coming In Fast And Furious
CBD enjoys higher celebrity approval compared to any other cannabis extract.
American actress Whoopi Goldberg is one of the most outspoken CBD advocates. In 2016, Goldberg collaborated with Maya Elizabeth to launch a company that offers CBD-based products intended for treating menstrual pain.
Another famous actress, Kristen Bell, advocates for the use of CBD in relieving anxiety and depression. Bell claims that CBD helped her manage her condition where other conventional antidepressants failed.
American rapper Shawn Corey Carter, popularly known as Jay-Z, is another outspoken advocate of CBD. The list of celebrities that use and endorse CBD is virtually endless.
6. A Variety of Ways to Invest In the Industry
When many entrepreneurs consider investing in the cannabidiol industry, the first thing that usually springs to mind is CBD retail outlets.
Indeed, the most popular way to invest in the CBD trade is by setting up a CBD store. But it’s not the only way to tap into the industry’s lucrative opportunities. You can also enter the industry as a producer.
A CBD producer is technically a cannabis farmer or cultivator. If you decide to be a cannabis grower, you should consider cultivating hemp. Hemp is a variant of cannabis that’s famous for its high CBD yields. The plant is often contrasted from marijuana, which produces more THC than CBD.
Other popular ways to invest in the CBD industry include a distributor, stock trader, consultant, or auxiliary service provider.
With so many ways to invest in the CBD industry, it’s clear why the industry is growing at an impressive CAGR.
Numerous factors are behind the sustained growth of the CBD industry. With the growing list of diseases that cannabidiol can treat, it’s safe to predict that the industry will remain bullish for a fairly long duration. If you’re not currently investing in CBD alongside crypto, you’re missing out on a great opportunity to diversify your portfolio and increase your overall networth.