CBD - cannabis in American life

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Cannabidiol, a non-psychotropic substance found in cannabis, has recently become hugely popular in the US, becoming a billion-dollar industry.

E-cigarette and vape liquids, pain relief creams, patches and candy for every taste (gummy bears and snakes, colourful marshmallows) as well as capsules and blends.

Although it has been a challenging year on many fronts, the US CBD market remains relatively healthy. According to the latest industry report on the US CBD market from the Brightfield Group, retail sales of cannabis-derived CBD are expected to reach $4.7 billion by 2021, a modest increase of 2.5% over last year's sales. Unsurprisingly, online sales have surged this year. CBD online sales will exceed $1.8 billion, accounting for almost 39% of total revenues.

Users say they take it for muscle pain, arthritis and anxiety.

CBD helps with epilepsy and post-traumatic stress disorder. Various businesses and business accounts buy instagram followers to promote their products and increase sales through stories.

Cannabidiol is even added to pet food. There is, for example, CBD oil for dogs - flavoured with bacon, of course. The Brightfield Group, a market research firm that researches the CBD market, estimates that the product will have a production cost of $5.7 billion as early as next year, rising to $22 billion by 2022.

Little statistics

Research team leader Bethany Gomez notes that Charlotte's Web Holdings, the market leader in cannabis-based products, grew 172% in 2016-2017 and reached $89 million in 2018.

Unsurprisingly, this controversial sector is actively attracting the attention of investors, including from rather unexpected industries.

Coca Cola, for example, recently stated that it is "closely monitoring how the non-psychotropic cannabidiol is being added to health drinks around the world". However, Coca Cola declined to offer a more detailed comment. When the Brightfield Group released its industry forecasts late last year, many were surprised. But three days later the media reported that Coca Cola was looking into CBD production and all questions fell away. "If you look at the total sales of all CBD products today, and add chain retailers and pharmaceuticals who dream of becoming players in this market, you can expect tremendous change."

Who is the customer?

Who exactly is buying cannabidiol products?

  • According to a survey of 5,000 CBD consumers conducted by the Brightfield Group last summer, the first people to start buying CBD after its legalisation in various states were millennials.
  • They are followed by buyers in their early 30s, with demand gradually declining among forty-year-olds but rising again in the 50 to 60 age group.

The latter group of consumers are mainly interested in tinctures, creams and capsules for ailments related to ageing, such as arthritis or chronic pain.

There are roughly equal numbers of women and men among CBD consumers, but, as Gomez notes, there used to be more women. Now pay attention! Products containing CBD are sold almost everywhere in the US, but by buying them in all 50 states and in any form, you're breaking the law. So although instagram is keeping an eye on it, the above method to buy instagram followers and advertising through stories to your sites or other links remains workable.

The problem is the conflict between federal and state law and the difference between the two types of cannabis: marijuana and cannabis.Consumers are interested in two types of cannabis extract: THC (tetrahydrocannabinol), which has psychoactive effects, that is, it changes the mind, and CBD (cannabidiol), which has no such effect. Industrial hemp contains less than 0.3% THC but can have high levels of CBD.

Marijuana plants, on the other hand, are usually cultivated precisely because of their THC content.In other words, cannabis is completely different from marijuana, but both types of cannabis were classified in the 1970s in US federal legislation as a Category 1 drug.That is, the same as heroin and cocaine. And that definition is still in use today.

Investors are in no hurry

The unclear legal status of the substance in America makes potential investors, who are undoubtedly attracted to the industry's profitability, extremely cautious. On the other hand, Forbes called the hype around CBD exaggerated and advised better to invest in Apple than in "weed".

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