CBD Market Analysis: Past, Present and Possible Future

CBD has evolved in the last more than five decades from a toxin no one cares about into the miracle element it is now. It is being dubbed the things that human kind has been missing. It has busted out of the cannabis stigma to become a stand-alone cannabinoid. Human beings now suffer thousands of illnesses that were inexistent many years ago. This is hugely attributed to the fast-paced lives that make it harder for our bodies to fight against illnesses. CBD is now used to manage more than 50 known illnesses. There are many more uses outside illnesses. Research and studies are underway to discover more uses for CBD. 

Survey on Use

A survey was conducted on HelloMD. This is a virtual community of medical practitioners and patients. It was found that 55% of the CBD users are women. It was also found that the women are more likely to replace their traditional medication with CBD. It was found that the men favored a more THC approach. The most common uses were insomnia, depression, anxiety, and joint pain. 42% of the CBD users had stopped their traditional medications in favor of CBD. 80% said that it was very effective. Only 3% complained of experiencing no effect whatsoever or just a slight change. 

CBD is really taking root. The first ever CBD summit was held by Natural Products Expo West in the first quarter of 2018. The goal of the summit was to give a full dimensional view of the potential of CBD products. An official was even quoted saying that it was the hottest element in the history of natural products. 

Exponential Growth

An analysis of the market was done and experts maintain that the market will grow 700% by 2020. This is two years from now. It is estimated that the market will grow to $2.1 Billion by then. Only $450 Million of this will be attributed to hemp CBD. This is a testament to the growing embrace for cannabis. Hopefully, human kind will continue to unravel the untapped opportunities cannabis holds. To grasp the quintessence of a market, it is essential to do a sort of mock SWOT analysis. This is a look into the strengths and weaknesses of the cannabinoid. There should also be a look into the opportunities the future holds and the threats that could deter stakeholders from grasping those opportunities. 

• Strengths

1. Benefits

The uses and advantages attributed to CBD are definitely the biggest strengths. CBD has been mentioned in cancer therapy. It has been said that not only does it mitigate the side effects of traditional cancer therapies, it also works to kill the cancerous cells. CBD has also been mentioned in epilepsy. The CBD-epilepsy connection was by Prof Mechoulam who is credited for being the father of CBD discoveries. Other than this big news, CBD has also been found to be helpful in anxiety disorders. In addition to these, CBD can effectively manage autoimmune diseases. Those that come with bad inflammation. The diversity and versatility of CBD is truly the biggest strength there is. It could be used to treat multiple illnesses and prevent another handful. 

2. Natural

The issue with prescription drugs is that they are, for the most part, chemicals. Harmful chemicals that bring about heartburn and other horribly inconvenient side effects. CBD does not have that problem, as it is a natural element. 

People have overdosed and died from the prescription and over the counter medications. No fatalities have been reported from overuse of CBD. Only slight side effects have been noted. Otherwise, a slip up would not end with the person in at the ER waiting to have their stomach pumped. 

3. Non-Psychoactive

Each cannabinoid has its own set of characteristics. Most are similar but not all. The two most prominent cannabinoids are THC and CBD. However, THC and CBD have one distinct difference. THC causes mental excitation while CBD does not. CBD does not alter behavior in the way THC does. This makes it safe to use even when driving or working with heavy machinery. This quality makes it a favorite and suitable for children.  

• Weaknesses

1. Expense 

During the HelloMD survey, it was found that 8% of the CBD users did not know whether they had used hemp or marijuana CBD. Those who did all agreed that marijuana CBD was incredibly expensive. This is presumably due to the fact that marijuana CBD is essentially illegal. Marijuana is a schedule 1 drug and by extension so is CBD. There are csts that come with development of marijuana CBD products. These costs of course have to trickle down to the consumer. These problems are not experienced in the case of hemp CBD products because hemp is perfectly legal. Hemp CBD products can be imported and purchased freely in all US states. 

2. Lack of Education

When you decide to use CBD, you have to take it upon yourself to research. You have to find information about how CBD would help your situation. More often than not, the physicians choose not to get involved. This is especially true if you live in a state that has not legalized yet. The internet is buckets full with information. However, you can never really tell what is true and what is not. Then if you choose to look at the studies on NIH or other scientific websites, the medical jargon just confuses you. 

The same problem faces the issue of dosage and method of administration. Online dosage calculators make the dosage thing easier. This becomes a problem when the manufacturer has misrepresented information on their packaging. This was actually rampant until the authorities dished out a few warnings. 

3. Legality and Damper on Research

Cannabis remains to be a schedule 1 drug. It is also subject to many other legal hurdles that are not common to the other schedule 1 drugs. However, earlier this year the DEA announced having made an effort to streamline the process of gaining license to research schedule 1 drugs. They moved the process online. This is a step, sure. But, it is a step in a thousand mile crawl. A drop in the ocean. This will barely make an impact on cannabis research. Research that is integral to ensuring CBD reaches the masses. 

• Opportunities

1. New Targets

In March of 2018, the Marijuana Company of America made a move into convenience stores and other places that would give them a chunk of the impulse buys. The company collaborated with another to bring tinctures, topical and edibles to the market in one, two, and 30 day doses. This is a great idea. One that would open up doors to larger markets. An idea that would provide a larger pool of users to further the CBD agenda. 

Te internet has become a cornerstone of commerce in this decade. E-commerce was attributable for more than 10% of the global retail trade in 2016. Online trade is popular for its ability to support two avenues of business: Business-to-Business (B2B) and Business-to-Cuctomer(B2C). 

2. Approval of Epidiolex

A drug by a European company GW Pharmaceuticals is set to receive approval by the FDA. It was recently recommended and the hearing will be held in June. It will be the first purely CBD drug in the US market. Once it has been approved, this will be a landmark event in the history of CBD in the country. It will open up doors for more life changing CBD drugs to dip their toes in the water. There will be a lot to learn from the hearing and the process GW went through to get to this point. As it is, Epidiolex is the first ever CBD drug to get this far in the process of FDA approval. 

3. Research Beyond Borders

The CBD community has been incredibly tight. Information has been shared across borders. The Hebrew University of Jerusalem has been especially prominent in the advancement of CBD. There is still more research underway. Research into new uses. Research into more benefits. Research into any possible side effects that may have remained hidden thus far. Studies to dig into the mechanism of action of CBD. Science is trying hard to ensure CBD remains the gift that keeps on giving. 

• Threats

1. Stringent Actions on Research Efforts

As much CBD has been proved useful, there is still need for clinical evidence. As far as the authorities are concerned, all the stories and studies provided might as well be hearsay without proper clinical evidence to back it all up. However, getting this clinical evidence is difficult, as one has to get approval from three separate entities. Getting a license is tedious and costly. This already locks out the smaller research outfits. This issue significantly narrows down the amount of research possible. A decision by the bigger companies to fund the expensive process will most likely be based on business. It will probably not have the good of the masses at heart.

2. Hesitation from Investors

The cannabis legalization issue is one riddled with political interest. This makes it a red button for investors who would rather seem neutral to the whole issue. The risk of never getting desceduled also leaves the future of CBD a bit uncertain. 

Bloom in the Gray

In the wake of the GW Pharmaceuticals Epidiolex-approval news, the shares of the company rose by more than 11% to an 11-week high. This was the reaction in the stock market upon the news of a possible approval. This right here is evidence that even though there is a shade of uncertainty, CBD is still slated for a very bright future.