New Study Predicts CBD Market Will Reach $20 Billion by 2024
The CBD market has conquered the most diverse industries — from beauty, food, and beverage to pharmaceuticals for humans and pets, making grand headlines along the way.
Only a year ago, New York-based investment bank Cowen & Co. released a study in which they predicted that the CBD market could reach $16 billion in revenue by 2025. However, since this study was published, cannabis and CBD products have become widely accepted and more integrated into mainstream society.
The latest study conducted by BDS Analytics and Arcview Market Research, the leaders in cannabis research, projects that the CBD market could reach and even surpass $20 billion by 2024.
How come there’s such a huge discrepancy in such a short time span between these two studies? Well, one important factor — the BDSA study takes into account not only CBD products that are sold in licensed dispensaries and pharmaceuticals, but also the general market retail; which includes pharmacies, grocery stores, cafes, and smoke shops. The new study also discovered that, since 2014, sales of products in dispensaries have grown at even faster rates than the overall sales in dispensaries.
With all the recent changes, the BDSA also predicts that CBD sales could very soon happen in general stores instead of dispensaries, while continuing the sales on other channels, as well. This could also lead to a 49% annual growth rate by 2024 and a $49 billion revenue for cannabinoids, including THC products.
The vice president of consumer insights at BDS Analytics, Jessica Lukas, explains that while conducting research for the study, they also had to examine the interactions between the dispensaries and the general market channels. Primarily, they did this to evaluate whether the CBD product availability on the market is incremental to purchases in dispensaries, whether it will replace them, or whether it would lead to further acceptance of legal cannabis.
Another challenging part of the research was estimating the size of the market by channel and category, as the majority of products sold on the general market can’t be tracked. Despite this, the BDSA believes that a great number of these untrackable categories like beauty, skin, food, candy, beverages, etc., will grow exponentially.
Even though the BDSA projections make perfect sense, the CBD market is constantly changing, so the only way to know whether they’re right is to wait and see the outcome.