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U.S. CBD Market Anticipated to Reach $20 Billion in Sales by 2024

BOULDER, Colo. — May 9, 2019 — As applications for cannabidiol are brought to market across diverse industries such as cosmetics, health products, food and beverage, pet products, skin care, and pharmaceuticals, the collective market for CBD sales is expected to exceed $20 billion in the United States by 2024, according to BDS Analytics and Arcview Market Research.

The forecast includes products sold through licensed dispensaries, pharmaceuticals, and in general market retail — from cafes and smoke shops to grocery stores, pharmacies and mass merchants. The figure was generated from BDS Analytics’ own proprietary data sets, which provide an in-depth understanding of the history and evolution of cannabis product assortment, purchasing, pricing, and consumer behavior; it was then expanded with integral datasets and insights from strategic data partners.

Already a widely utilized provider of data to the cannabis industry, BDS Analytics will now offer the same quality insights to decision makers in the CBD markets via its CBD Market Monitor service.

“We’re witnessing CBD maturing from a cannabis sub-category into a full-blown industry of its own,” said Roy Bingham, Co-Founder and CEO of BDS Analytics. “Our growth forecast for the CBD market, across all distribution channels, predicts a compound annual growth rate of 49 percent by 2024. This is a great opportunity for all involved, but it means the road ahead will include decisions that need to be informed by the best possible data.”

As major retailers continue to announce their stocking and private label development of CBD products, BDS Analytics predicts that the majority of CBD product sales will soon occur in general retail stores, rather than cannabis dispensaries, as is currently the case. Moving forward, BDS Analytics market insights indicate that the success of products is dependent on education and understanding, dosing, and consistent labeling.

BDS Analytics feels CBD is in a unique position compared to other nutraceutical or supplement ingredients for two reasons: 1) as an active ingredient in cannabis, it has a storied history of health and wellness use, and anecdotal evidence of efficacy, and 2) it is one of the few natural remedies with scientific basis for at least some of the claims being made about its curative powers. Unsurprisingly, consumers are fascinated by the perceived benefits of CBD. While BDS Analytics acknowledges consumer penetration for hemp-derived CBD products in the US is still only ~15% today, there is substantial consumer interest in Ingestibles (tinctures, pills, beverages, food) and Topicals (creams, balms, salves) formats.

“CBD sales have exploded in the past several months, but there’s still a long way to go when it comes to consumer, retailer, and manufacturer knowledge,” said Jessica Lukas, Vice President of Consumers Insights at BDS Analytics. “56 percent of adults 21+ do not know or are confused about the differences between THC and CBD. That’s why we’re so excited to offer the in-depth data we do, to help guide and inform a new, booming industry.”

A sampling of BDS Analytics’ comprehensive CBD retail data, consumer insights, and market intelligence includes:

  • BDS Analytics’ predicts US sales of cannabis- and hemp-derived CBD products to surge from $1.9 billion in 2018 to $20 billion by 2024, a compound annual growth rate of 49%.
  • When combined with THC products, the CBD market will create a total market of $45 billion for cannabinoids by 2024 (Source: BDS Analytics and Arcview Market Research)
  • CBD product sales in dispensaries since 2014 have grown at an even faster rate than overall sales in dispensaries.
  • CBD sales in dispensaries are a leading indicator of the direction of where the general market hemp-derived CBD product market is headed. Within the dispensary channel, the share of high-CBD (as opposed to high-THC) product sales has been increasing rapidly. In markets tracked by BDS Analytics’ GreenEdge™ Platform, which powers the company’s retail sales tracking service, dispensary sales of CBD accounted for 11% of total sales in 2018—a considerable increase from just 5% in 2017.
  • 66% of hemp-derived CBD consumers in the US agree with full federal legalization of cannabis, with 90% believing that marijuana has medical benefits, largely driven by the belief that it can relieve pain.
  • The CBD consumer profile is also notably different from that of the cannabis consumer: BDS Analytics reports that CBD consumers have nearly a 1:1 gender radio, whereas only one-third of cannabis consumers are female.
  • CBD consumers are an average age of 40, are of higher education, and are more likely than non-consumers to be employed full time.

 

For more information on the CBD Market Monitor service, please visit bdsanalytics.com/cbd

About BDS Analytics:

Headquartered in Boulder, Colo., BDS Analytics provides businesses with smart, actionable, and accurate cannabis market intelligence and consumer research. The company provides a holistic understanding of the cannabis market through insights distilled from dispensary point-of-sale systems through its market-leading GreenEdge™ Platform, producing comprehensive consumer research, and generating cannabis industry financial projections and analyses led by BDS Analytics’ industry-leading team of thought leaders and analysts. To learn more about how you can utilize BDS Analytics’ superior market research, please visit www.bdsanalytics.com.  

 

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Media Contact:
Eamon Levesque
North 6th Agency (for BDS Analytics)
212-334-9753 ext.102
bdsanalytics@n6a.com

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