CBD Market - $16 Billion by 2025
According to a new analysis completed last month by Cowen & Co., nearly 7 percent of Americans are already using CBD which in turn is placing the potential market opportunity for the cannabis compound at $16 billion by the year 2025.
Cowen’s January consumer survey of 2,500 adults found that 6.9 percent of respondents currently use CBD as a daily supplement. Based on this surprising level of consumer awareness, Cowen “conservatively” sees CBD use growing to 10 percent of the U.S. adult population or 25 million consumers by 2025, resulting in the $16 billion market potential.
The U.S. Farm Bill, which passed in December makes hemp-derived CBD legal however, regulators like the FDA have been cracking down on CBD products in some jurisdictions. Earlier this month, New York City health officials ordered bakeries and restaurants to stop adding it to beverages and food, while regulators in Maine and Ohio have curbed the sales of the compound.
According to the survey, CBD use is the highest among consumers aged 18 to 34. Tinctures or liquid extracts accounted for the largest chunk of the market place at 44 percent, followed by topicals at 26 percent, with capsules and beverages rounding out the survey.
Original Article appeared on Fortune.com 2/25/2019
