The CBD market is poised to grow as the market for the much-hyped cannabis-derived substance will reach $16 billion by 2025, an analysis by Cowen & Co. revealed.
The brokerage company’s consumer poll of around 2,500 adults showed that nearly 7% of the respondents are using CBD as a supplement. The figure exceeded Cowen analyst Vivien Azer’s expectations. She said that because of the remarkable level of consumer awareness of this compound, Cowen predicts CBD use surging to 10% of American adults or 25 million consumers by 2025, which translates to a $16 billion market opportunity.
While this is below the estimated figure of $22 billion by 2022 earlier reported by the market research company Brightfield Group, it still shows investors’ bullish sentiment about the wonder plant. Brightfield released the numbers around the time of the passing of the 2018 Farm Bill. The legislation removed hemp, a derivation of cannabis and another source of CBD, in the list of controlled substances.
Even after the passage of the bill, the legality of CBD products is still questionable. Commissioner Scott Gottlieb of the Food and Drug Administration recently said to lawmakers the agency would start the hearings in April to find out whether it will fully legalize CBD-infused food products.
“Next Huge Growth Area”
Meanwhile, analysts foresee cannabis as the “next big thing” in the investment world, even challenging cryptocurrencies like Bitcoin, which continues to suffer tremendous loss recently. Carol Pepper, an advisor to wealthy people and CEO of Pepper International, said that with the plant’s various possibilities for medical use, the compound sourced from marijuana and hemp is “the place to go.”
The stocks of pot companies in Canada like Tilray and Canopy Growth have soared since debuting in 2018, despite encountering many swings.