The CBD industry is still in its infancy. But the future of CBD is looking brighter than ever.
It was only recently, with the passage of the 2018 Farm Bill, that it really began to boom. This national legislation allows for the growing and manufacturing of hemp products and their derivatives as long as tetrahydrocannabinol (THC) levels are below 0.3% on a dry weight basis. This designation treats hemp as an agricultural commodity crop, although growing it is still highly regulated. It also allows for the sale of CBD that is compliant with federal law to be sold across state lines, which has been transformative to the industry.
Learn more about the history of CBD here. Then, consider the future of CBD by looking at CBD trends and how they might shift and shape the industry over the coming years.
Some of the most excitingCBD market trends include:
– Growing consumer demand
– More cohesive government regulations
– Increasing market innovation and competition
– A better educated market
Let’s take a closer look at each.
Growing Consumer Demand
As popularity increases and CBD trends evolve, so does consumer demand–making the future of CBD a little more clear. This isn’t always the case with a new wellness product, but according to the numbers, it doesn’t look like CBD or any hemp-derived products are going anywhere but up. It’s estimated that between the years 2021 and 2028, the CBD industry will experience a compounded annual growth rate of 21.2%. Along with growing consumer demand for CBD products comes the demand for high-quality CBD that is compliant, effective, and consistent.
Consumers are already demanding premium products. No one wants to consume a product from a brand that is cutting corners. Expectations shift as more and more people open their eyes to the future of CBD. What do these quality demands look like? Here are top-tier expectations for CBD companies and their products:
– Organically grown CBD
– CBD extracted without the use of solvents and harmful chemicals
– Extraction that preserves as much of the plant compounds as possible
– Third-party lab testing results in the form of a Certificate of Analysis with every product
– Transparency about business practices
– Educational and helpful customer service
As the future of CBD takes shape, it’s up to the consumers to continue to demand the best business practices, and it’s up to CBD companies to set industry standards. HempFusion is an industry leader that has done this from day one.
More Cohesive Government Regulations
As time goes on, CBD industry trends tend to shift. That is the nature of business, especially in an industry with products that are highly regulated at every turn, including how they are sourced, made, and sold.
Current CBD government regulations were formed based on the 2018 Farm Bill, which gives individual states the power to interpret the bill and shape their own laws within certain parameters.This patchwork approach makes it difficult to establish meaningful industry standards.
But CBD market trends seem to be leaning towards more cohesive federal regulations.This could help eliminate a lot of customer confusion about rules and regulations in the industry. And it would hold CBD manufacturers to a consistent standard. Right now, many CBD companies are making bold (sometimes unsubstantiated) claims about their products, which federal regulations could help eliminate. That’s a good thing because science really matters in this space.
Thankfully, organizations like the U.S. Hemp Roundtable (on which Ola Lessard, HempFusion’s CMO, proudly serves as President) bring industry leaders and legislators together to help craft and advocate for legislation that advances the hemp and CBD spaces in a way that is beneficial for farmers, manufacturers, states, and consumers alike.
The U.S. Hemp Authority also has its own rigorous certification process, which is a model for meaningful industry standards. HempFusion is U.S. Hemp Authority certified, which means we are actively paving the way for an industry that is consistent and compliant, with an unwavering commitment to quality. And that leads to a healthier CBD future for everyone.
Increasing Market Innovation and Competition
With a booming market comes innovation and competition, especially as brands like HempFusion pull ahead of the rest. The growing popularity of CBD naturally means more brands are entering this market space. And that means more competition. With more competition comes a need for a brand to set itself apart from the others with unique, innovative products.
But a counter-balance to this innovation CBD trend is the regulation trend that is also in play. A potential drawback to regulation is how it may impact innovation. It may be more challenging to enter the CBD space if it’s highly saturated and regulated. It also may be difficult to innovate if there are restrictions in place that prevent such things. Hopefully, these two industry trends will come together to shape a CBD future that’s vibrant and viable for the long run.
A Better Educated Market
We live in a day and age where information is at our fingertips. With this knowledge comes a desire to educate ourselves on everything, especially wellness-related products. CBD is no different. One of the more exciting aspects of the future of CBD is how it’s creating an educated market.
More and more research is being conducted on the hemp plant, its astonishing variety of constituents, and the far-reaching health benefits they offer. Consumers are learning more about CBD and the CBD industry. And CBD companies are becoming more capable and motivated to bring innovative, quality products to the market.
Only good can come from CBD education. It elevates the entire CBD industry–customers and companies alike. As the future of CBD moves forward, specific brands will rise to the top because of their efforts to create new products and adhere to industry standards…and by going above and beyond what’s expected to foster revolutionary change.
Bottom Line: The Future Looks Bright
Studying industry trends is a constructive educational tool, but only time will tell what the true future of CBD will be. However, we know for sure that business is booming and CBD is more popular than ever before. So, from this vantage point, the future looks bright!
To learn more about CBD or HempFusion, check out our informative FAQs page.