With CBD product sales surging, a new forecast predicts that the market will soar to $19.5 billion in 2025. This projection takes into account a compound annual growth rate of nearly 37% over that period. But there is a catch: The estimate hinges on whether the U.S. Food and Drug Administration will finally approve CBD as a legal additive in 2022. Top cannabis market research firm BDSA, which made this prediction, believes the agency will do so. This would be a significant watershed for the space because even though CBD was legalized as a result of the passage of the U.S. Farm Bill in late December 2018, there are currently no FDA-approved drug products that contain CBD.
If this prediction about the FDA comes to pass, there is sure to be a floodgate of interest from traditional food and beverage brands as well as major retailers. Much of that growth will transpire as ingestibles come to market and legalization continues to expand throughout the country. Consumers actively seeking functional benefits for pain relief, improved sleep, stress and anxiety management will drive this boom.
Of BDSA’s 2025 $19.5 billion CBD sales forecast, mainstream retail, which includes grocery, drug, ecommerce, natural/vitamin, pet/vet and beauty channels, will seize a lion’s share of that figure, clocking in at $14.92 billion or 77%. The pharmaceutical channel is estimated to take up a 12% of that pie at $2.36 billion. And, dispensaries will grab 11% at $2.22 billion. Currently, the cannabis dispensary channel is the only legal channel for CBD-infused ingestibles.
Other key findings and trends culled from BDSA’s forecast include:
*Nearly 50% of all adults are now consuming cannabis in fully legal states. As the cannabis consumer population continues to grow, BDSA predicts this momentum will continue well into the future. According to the cannabis data researcher, only 8% of adults oppose cannabis legalization, and even the most mature legal markets in the U.S. are continuing to expand;
*The percentage of adults consuming cannabis across all fully legal cannabis states increased by 11% from the first quarter of 2018 to the first quarter in 2021;
*Among U.S. cannabis consumers, there is a relatively even split between recent and long-term adopters. About 50% have been using for one to two years (with 43% consuming for more than two years);
*There is strong support for cannabis legalization across fully legal states, with 84% supporting some form of legalization and 56% supporting full legalization; and,
*Medical factors and education are some of the highest-ranked reasons for potentially becoming consumers among those who would consider using cannabis in the future.
Founded in 2014, BDSA is headquartered in Boulder, Colorado.