As the CBD and Hemp market grows, it becomes an increasingly attractive investment opportunity. The industry has experienced significant growth since its legalization in 2018 by the Farm Bill Act of 2018. The legalization of hemp has opened up new opportunities for farmers and entrepreneurs. Hemp-derived CBD products are now federally legal. This means that there are new opportunities to invest in hemp farming, manufacturing, and product development. With the right investment strategy, investors can take advantage of this growing industry and potentially see significant returns.
According to Forbes, CBD sales in the U.S. hit $4.6 billion in 2020, a massive number just two years after hemp-derived cannabinoids were federally legalized. This growth is only expected to accelerate, with two major factors driving the growth of the industry: increasing consumer demand and the expansion of the legal framework.
According to CFAH, in 2022, 26% of American adults are using CBD, a significant increase from 6% in 2018. By 2024, the percentage of CBD users in the US is projected to increase to 35%. The CBD market is expected to reach $19.5 billion by 2025, with a compound annual growth rate of nearly 37% over the next four years. The increasing popularity of CBD products and the growing acceptance of hemp-derived cannabinoids in the US drives this growth.
The popularity of CBD is also reflected in the number of people who have tried it. According to a 2019 Consumer Reports CBD survey, 40% of people ages 18-29 have tried CBD, 32% of people ages 30-44 have tried CBD, and 23% of people ages 45-59 have tried CBD. 11% of people ages 50-64 use CBD, and 8% of people aged 65 and older use CBD.
One of the biggest advantages of investing in the CBD and Hemp market is the potential for high returns. As the market continues to grow, companies in the industry are expected to see significant revenue growth, which can translate into high returns for investors. In fact, some of the top-performing CBD stocks have seen returns of over 200% in the past year alone.
Another advantage of investing in the CBD and Hemp market is the potential for diversification. As the market continues to grow, investors can choose from various companies in the industry, ranging from pure-play CBD companies to companies that offer CBD products as part of a larger product portfolio. This allows investors to diversify their investments and potentially reduce their risk.
In addition to the potential for high returns and diversification, investing in the CBD and Hemp market also offers the opportunity to invest in a socially responsible industry. CBD products are being used to treat a variety of ailments and conditions, including epilepsy, anxiety, and chronic pain. By investing in the CBD industry, investors can support companies that are positively impacting people’s lives.
The CBD and Hemp market is an attractive investment opportunity for investors looking to capitalize on the growing demand for CBD products. With the potential for high returns, diversification, and the opportunity to invest in a socially responsible industry, the CBD and Hemp market offers a compelling investment opportunity. However, it is important for investors to do their due diligence and carefully evaluate the risks and opportunities before investing in the industry.
About Don Hawley
Partner at 2GoAdvisory Group, Don Hawley is a seasoned finance professional with extensive experience in the cannabis, hemp-CBD, and agricultural business industries.