OAKLAND, Calif., Sept. 12, 2019 /PRNewswire/ -- The growing popularity and mainstream distribution of cannabidiol (CBD) across the United States is set to have a major impact on the sales of these products leading to a $20B market by 2024. Dispensary sales are projected to reach $5.3B, while general retail sales will make up $12.6B, and pharmacy sales will hit $2.2B, according to CBD: Cannabinoids Escape the Dispensary, a new report from Arcview Market Research and BDS Analytics.
Consumers first learned of THC's non-psychoactive cousin – CBD – from dispensaries in states with legal cannabis programs. In recent years, however, general retailers have taken notice of the compound's popularity and have looked to capitalize on its ambiguous legal standing. The report forecasts that the vast majority of CBD sales will take place in general retail distribution channels by 2024.
"CBD products on the shelves of grocery stores and mass merchants is just the first act in the "Cannabinoids Everywhere" phenomenon," said Troy Dayton, CEO of the Arcview Group. "Unlike with alcohol, coffee or other plant-sourced consumables, cannabis product marketers have more than taste and strength to work with; they also have the subtle effects of 100-plus cannabinoids other than THC. The popularity of CBD is the first inkling of things to come."
"The FDA's approval of Epidiolex to treat childhood epilepsy conditions Dravet Syndrome and Lennox Gastaut Syndrome prompted our reassessment of CBD's potential as a functional ingredient," said Tom Adams, Managing Director and Principal Analyst for BDS Analytics' Industry Intelligence group and Editor-in-Chief for Arcview Market Research. "The 2018 Farm Bill's legalization of hemp cultivation and the subsequent moves by several states to push ahead without the FDA's approval of CBD as a food additive or supplement made it clear just how fast the market is likely to grow."
Other key trends analyzed in CBD: Cannabinoids Escape the Dispensary include:
65% of the $1.9B in 2018 spending on CBD products in the U.S. took place through licensed dispensary channels in states with legal cannabis programs, but is projected to shift largely toward mainstream retail in the years to come.
General retail stores (food, drug, mass and others) will account for 63% of CBD spending in 2024, as the legal issues around selling CBD as a food additive or supplement are resolved.
High-CBD products accounted for just 2.5% of total sales in legal cannabis dispensaries in 2014, the first year of adult-use sales in Colorado. But, by the first half of 2019, that share had increased to 10.9% in the states BDS Analytics tracks.
47% of U.S. adults age 21 or older in fully legal states responded to the statement, "There are no differences in the effects of CBD and THC" either incorrectly or did not know. Similarly, 52% responded to the statement, "Any product containing hemp will cause effects such as feeling high, relaxed, sleepy, etc." either incorrectly or did not know, in the latest nationwide study completed by BDS Analytics Consumer Insights.
The 38-page report is available for $297, or as part of the annual Cannabis Intelligence Briefing Series subscription service from Arcview Market Research and BDS Analytics, priced at $1,975. Visit shop.bdsanalytics.com to make your purchase today.
About Arcview Market Research: Since 2011, Arcview Market Research has published over 20 reports analyzing and forecasting the rapidly evolving cannabis space. Arcview's flagship annual report, The State of Legal Cannabis Markets has become the industry standard for market analysis and data in the sector. In 2017, Arcview Market Research partnered with BDS Analytics to add more robust point-of-sale data and consumer insights to its offerings. Arcview Market Research is a project of The Arcview Group. Founded in 2010, Arcview is responsible for a number of groundbreaking ventures in the cannabis industry. The Arcview Investor Network includes more than 600 accredited investors who have put more than $260 million behind 200+ companies. In 2015 Arcview became a partner in CanopyBoulder, the first seed-stage mentor-driven business accelerator. Arcview is also co-founder of Cannasure Insurance Services, the leading provider of business insurance to the cannabis industry. Forbes Magazine recently named Arcview among the top 5 financial firms in the cannabis sector. Arcview's next invitation-only investor forum will take place in New York CityOctober 2-4.
About BDS Analytics: Headquartered in Boulder, Colo., BDS Analytics provides businesses with comprehensive, actionable, and accurate cannabinoid market intelligence and consumer research. The company provides a holistic understanding of the cannabinoid market by producing insights from tracking and categorizing millions of individual consumer transactions, extensive and detailed consumer research and generating market-wide cannabinoid industry financial projections, all delivered through its market-leading GreenEdge™ platform. To learn more about how you can utilize BDS Analytics' industry-leading market research, please visitwww.bdsanalytics.com.