A regulatory and market intelligence company focused on the cannabidiol (CBD) sector has given projections for the market over the next few years.
CBD-Intel on Wednesday predicted that the United States CBD market would break the $3 billion mark by 2023.
According to the company, anticipated regulatory changes will spur massive growth in the CBD industry.
CBD-Intel says that the Food and Drug Administration will likely develop regulations that provide a federal path to market later this year, at the earliest.
As a result, CBD-Intel says there will be a delay in market value realization.
Consequently, the production and sale of products like CBD oils, capsules, tinctures, and edibles will likely be hindered until 2023, at which time CBD-Intel says such products will “come into their own.”
CBD-Intel predicts that the CBD market will undergo a transformation in the foods and supplements categories, with capsules replacing oils as the dominant product.
“Expect the rise of capsules and the continued success of the cosmetics and topicals categories to be the dominant market overview headlines for the next few years,” says CBD-Intel Head Market Analyst Nate Erskine. “Continued pressure on edibles, couples with growing interest from sports and beauty applications, will help fuel the continued rise of topicals as well as cosmetics, while companies will start to embrace capsules more and more as they seek to attract more of the hump of never-use CBD consumers to try products for the first time.”
CBD-Intel says that the change will come as product ease-of-use and accurate dosing become more-important and CBD becomes a standard health and wellness product for a growing number of consumers.
The company predicts that capsules will become the standard dosing methodology, replacing cumbersome and potentially unpleasant oils as the most popular CBD product category across world markets.
“Continued ease of use, combined with attractive pricing, will help convert those first-timers into regular users,” says Erskine. “Though those who take CBD on a daily basis for health and wellness benefits may only move around within the capsule category and not move to try other product types.”
CBD-Intel predicts that the CBD topical and cosmetics sector will also experience strong growth, reaching more than $600 million in the United States by 2024.
