Written By: Wayne Fan
In a recently released report by the Brightfield Group (a CBD consumer and industrial hemp company), CBD collected from the hemp plant is projected to make sales worth 16 billion dollars by 2025.
Below is some of the critical information that was presented in the report:
1. Rise In CBD Sales Revenue
Sales from industrial hemp in the US hit $5.3 billion in 2021. Which is an increase of 15% over sales in 2020.
2. Edibles Popularity Vs. Sales
By 2026, many companies could have made advancements in the CBD space to produce cannabis edibles.
Hence, CBD sales might hit $16 billion due to the trajectory growth in production and use of cannabis edibles.
3. Fast-growing CBD-Infused Beverages
Soft sweets and CBD-Infused drinks are anticipated to be amongst the fastest-growing products in the Cannabis industry in 2021.
Soft sweets are expected to have grown at 44%, while Cannabis-infused drinks might have shot up in production by almost 71%.
4. Tinctures Record Untouched
Even though Cannabis-infused beverages and edibles would have gained popularity in production and consumption, tinctures will maintain the largest market share.
In 2021, tinctures are accountable for about 18% of retail sales.
With all the listed wins for the Cannabis industry, online sales will surpass $2 billion by the end of this year. Online sales would have accounted for about 38% of the entire CBD market in the US.
Other Issues Highlighted in The Report
The report also calls attention to the impact of COVID on the United States’ CBD market, the US’s FDA regulatory stances on Cannabis, and other crucial information concerning the constantly growing Cannabis market.
The reporters anticipate that from 2021 to 2026, the Cannabis market derived from industrial hemp might grow at a “CAGR” of 25%.
The factors below may necessitate the growth in the hemp industry.
· New cannabis users
· Expanded retail to new channels
· US’s FDA framework which might accelerate the food growth rate
· New players in the industry who will bring innovations to the market
Changes in Effectiveness and Price
According to the collected data from the Hemp Benchmarks, the Brightfield Group delineated that from April 2019 to May 2020, the summed up projected market price of industrial hemp’ biomass dribbled by 82%, from $38 per pound to just $7 per pound.
However, the strength of the 30ML tincture rose on average by 33%, and the CBD content grew from 450mg to 600mg. A drop in the cost was recorded for 30- and 120-ml tinctures with an increase in potency.
In 2021, CBD sales online are projected to hit the 2.02 billion marks. This will account for 38 percent of the total Cannabis market. However, the sales in 2021 have a negative deviation from the 42% of 2020.
However, the drop in online sales from the previous years shows that many people are now opting for in-person retail shopping as businesses are normalizing.
Despite the drop in online sales, E-commerce will still dominate the distribution space of the cannabis market in 2021, seconded by pharmacies, then CBD specialty retailers, followed by natural food stores and pet stores.
In the classical industrial hemp fashion industry, the CBD market is full of innovations and persistently thinking over new ways to satisfy their clients.
Immunity is a vast focus point in the CBD space in 2021.
The following include top CBD companies in the last quarter of 2020 in relation to market shares.
1. Charlotte’s Web (3.6%)
2. Medterra (1.7%)
3. CBDMD (1.6%)
4. CBDfx (1.5%)
5. CBDistillery (1.2%)
VELXTECH is a sub-brand of Geekvape. Hence, we are a CBD hardware supplier that focuses on CBD hardware customization.
Facing the upcoming challenges ahead, “Immunity and cleanliness are vast focus points in the CBD space in 2021”, said Lawrence Wong, President of Velxtech.
Lawrence continues: “We are always on our toes to ensure that our products align with the latest technology in the market. Enhancement of our atomizing technology is our main focus. In addition, as destiny shapers in the vaping industry, we have been inventing better CBD ceramic coils, which will be put into effect soon”.
We welcome you to contact us to obtain more product info.