Cannabis-derived CBD oil is finding an area in products from skin cream to bottled water, with the U.S. retail market estimated to grow to $16 billion by 2025.
(The Associated Press) FILE- In this April 24, 2018, file photograph, the first rendering from hemp plants extracted by a super critical CO2 extraction apparatus on its’ way to becoming fully processed CBD oil spurts into a large beaker in New Earth Biosciences in Salem, Ore.. By skin-care lotions to bottled water, cannabis businesses are rolling out a developing collection of consumer goods infused with a chemical found in marijuana called cannabidiol, or CBD.
By skin-care lotions to bottled water, cannabis businesses are rolling out a buy cbd oil developing collection of consumer goods infused with a chemical found in marijuana called cannabidiol, or CBD.
Rather, CBD product manufacturers say that they promote general health and well-being.
The U.S. retail market for CBD is estimated to swell by an estimated $2 billion last year to $16 billion by 2025, according to a report by equity analysts in Cowen.
A key aspect in that prediction is that the growing number of CBD products which companies are bringing to market, such as beverages, capsules, gummies, topical lotions and tinctures, which are liquid extracts.
The amount of hemp oil products provided by Amazon has roughly quadrupled in the past six years to over 20,000, for instance.
Nutraceuticals — foods which have additives with a purported health benefit — along with topical lotions and beverages will induce much of this CBD growth, Cowen says.
Tinctures are currently the most popular CBD product, which makes up around 43 percent of this current market, according to a Cowen customer survey in January. Beverages account for about 20 percent.
CBD goods are sold online and in specialty stores across the U.S., though cannabis businesses need to browse various state and national limitations.
Products infused with CBD derived from marijuana can be legally purchased in the 10 states that allow cannabis for medicinal and recreational use. The selling of products with CBD derived from hemp is legal in most other states.
Proponents say CBD can relieve pain and anxiety, along with other health benefits. Other industry watchers say more study is required.
Tilray signed a $100 million deal with Budweiser maker Anheuser-Busch InBev last year to study cannabis-infused beverages available in Canada, which legalized recreational adult marijuana usage in October.
Canopy Growth made a splash last year after wine, liquor and beer company Constellation Brands declared a $4 billion investment in the Canadian cannabis manufacturer.
Shares in Canopy Growth are up about 68 percent so far this year, while Tilray is down 1.1 percent. Turning Point shares are up 79 percent.