Certain hemp-derived products are now legal under federal laws in US. And, this vital fact has essentially pumped the already existing CBD business with billions of dollars in investments in a matter of months. Today, we are going to review the current conditions of the cannabidiol industry in the United States to determine if there is as much potential in the hemp industry for smaller businesses as there is for the big boys.
Considering the Main Sources of Legal CBD Sales: Cowen & Co Missed a Few
The latest estimates by BDS Analytics and Arcview Market Research have trampled the data presented by Cowen & Co regarding the expected value of the CBD industry in near future.
While Cowen & Co had put the number at $16 billion by the year 2025, they had not considered the fact that, due to the new laws, CBD will not only be sold in specific cafes, grocery stores, smoke shops and pharmacies but also in general retail stores as well.
This is the primary reason why the study by BDS Analytics and Arcview Market Research has presented a completely different and significantly higher CBD industry value of $24 billion by the year 2024. That’s a full $8 billion more than the previous estimation and within a shorter time frame!
The Wholesale CBD Sellers in US are Supportive of Smaller US Ventures
Earlier, the laws were so unclear and haphazardly implemented that almost anyone could list their own brand of CBD concentrate or CBD isolate for sale on the internet. They could get away with a lot in some states due to the absence of defined regulations to check where the CBD was coming from or how it was being manufactured.
After CBD attained the federal legal status under firm standard maintenance clauses, big wholesalers have now gained the ground they needed to grow their hemp on US soil.
Being US companies operating under the direct jurisdiction of the US government, this also ensured that no legal regulations were being breached by them. As these companies have vested interests in the growth of the CBD retail industry, they are also quite supportive of small businesses as well.
Let’s take Cope, a large wholesale CBD supplier that has everything from CBD distillate and CBD crude oil to CBD isolate for sale on their website, for example. Any small or big business can use Cope to get the hemp products they need in the quantity they want.
Unlike the random online hemp merchant, all their plants are grown in Colorado, with strict attention to the health standards set forth by the FDA.
As already discussed, it is estimated that by the year 2024, the total value of the CBD business will hit $24 billion in the US, but there is a high chance that this number will be reached much sooner than that, making even such a high expectation actually an underestimation!
Given that it has not even been a year since the Farm Bill 2018 was introduced, this is one more reason why now is as good a time as any to get into the industry – even if you only have a basement-based business model at the moment!