Here’s the latest CBD news:
- According to a report, CBD sales could reach $2 billion in 2020 and triple by 2025.
- New York Gov. Andrew Cuomo submitted proposed regulations for CBD products.
- An economic recovery committee in the Bahamas has recommended legalizing hemp and hemp extracts.
Report: CBD Sales Could Reach $2 Billion In 2020, Triple By 2025
Perhaps thanks to increased anxiety and stress during the coronavirus pandemic, CBD sales have skyrocketed in 2020.
In 2019, total sales of hemp-derived CBD consumer products in the US was roughly $1.2 billion, according to Nielsen Global Connect. Now, Nielsen and Hemp Industry Daily have joined forces to forecast CBD’s future in their report “How to Navigate the Complicated World of CBD in Retail.”
In the report, Nielsen projects CBD product sales will land somewhere between $1.7 billion and $2 billion in 2020. Even on the low end, this would represent close to a 50 percent increase over last year.
If the CBD industry were to receive favorable guidance from the US Food and Drug Administration (FDA) or legislation from Congress, Nielsen expects CBD to generate $8.9 billion by 2025, more than tripling in just five years.
The current lack of FDA regulations has allowed CBD products to floor the market in 2020. The report breaks down sales into product categories, such as topicals, over-the-counter supplements, beverages, inhalables, food items, and candy, each of which has become a massive moneymaker for the CBD industry.
Nielsen’s findings show that the food category, which CBD brands have tried with difficultly to enter, is one of the smallest CBD segments. Meanwhile, high-end beauty and skincare products in the prestige category may offer a great opportunity, with sales expected to increase by close to 1,000 percent by 2025.
Beyond the estimated sales of hemp-CBD products, the reports also break down:
- The demographics for current and future CBD consumers.
- How and why consumers are using CBD.
- The barriers to consumer adoption.
- The prices compared to non-CBD products.
- Category management trends.
- How to stand out in retail.
- The federal regulatory outlook.
New York Files Regulations For CBD Products
This week, New York Gov. Andrew Cuomo announced the state had filed proposed regulations to regulate CBD hemp products in New York State.
The regulations, released by the state’s department of health, will license CBD processors and retailers. The Cannabinoid Hemp Program will also set quality control standards in place that all CBD hemp products must meet.
“These regulations are the next step toward regulating the growing hemp industry in New York in a way that protects consumers and helps ensure the industry’s long-term viability,” said Governor Cuomo. “Establishing the State’s Cannabinoid Hemp Program to regulate production and sale of hemp and hemp extract will help protect both consumers and farmers.”
Applications for cannabinoid hemp processing and retailing licenses are currently under development. The state department of health says it hopes to make them available in early 2021.
Panel Recommends Hemp and Hemp Product Legalization In The Bahamas
The Economic Recovery Committee in the Bahamas has called for the nation to legalize hemp and hemp extracts, as well as marijuana.
In a report, the committee says the industry represents an opportunity to bring in revenue. Prime Minister Huber Minnis said the country’s cannabis laws “outdated” and need to be changed.
“There are potentially many opportunities for creative Bahamian businesspeople to get involved in this new industry,” he said to the House of Assembly.
Minnis also said cannabis businesses would have to be Bahamian-owned or majority-Bahamian owned.
Under the new rules proposed in the report, hemp and derivative products with minimal or no THC would be exempt from regulatory limits. It would also make government-owned land available to cultivate cannabis, with special provisions in place for small-scale farmers and the Rastafarian community.
The report also would allow adults to possess up to two ounces of marijuana, with unsanctioned possession beyond that limit being punishable by a fine. Lastly, the report will allow for the licensure of cannabis cafes, resorts, and guesthouses for on-premises consumption.
The next step in the plan is a public comment period.