The Cannabis Industry has rapidly grown for many years, with legal sales projected to reach staggering heights of $73.6 billion by 2027. As the industry matures and becomes increasingly competitive, companies must adapt to new challenges and seek out new opportunities to remain at the forefront of the market. One such opportunity lies in the ever-growing Hemp CBD market, which is surging in demand due to increasing consumer awareness and interest in the potential health benefits of CBD and hemp extracts.

Now, the cannabis industry faces significant challenges and dramatic market shifts, including layoffs and consolidation among large companies like Curaleaf, Dutchie, and Leafly. This trend is driven by a combination of economic pressures from the ongoing recession and increased competition within the industry. Cannabis companies are struggling to stay afloat and must make difficult decisions to remain viable. By expanding into the Hemp CBD market, cannabis companies can reduce their financial risk, increase their market share, and diversify their product offerings to reach a wider range of consumers.

Industry trends confirm the rise of the hemp CBD market, with a projected growth of

$59.3B by 2030, as reported by Market Research Future. This growth is driven by a rise in consumer demand for plant-based hemp and CBD products, fueled by the growing awareness of the health and wellness benefits. As a result, the hemp CBD market is an attractive opportunity for cannabis companies looking to expand their reach and revenue.

In comparison, the cannabis market faces a number of hurdles, such as legal limitations, prohibitive taxes, limited markets due to permit restrictions, and curtailed advertising opportunities resulting from the federal scheduling of cannabis as a Schedule 1 drug. These obstacles have impeded the growth and profitability of cannabis companies, hindering their ability to capture a significant portion of the market.

On the other hand, the hemp CBD market offers a more favorable landscape for companies looking to expand. Hemp-derived CBD is legal federally under the 2018 Farm Bill Act and is not subject to the same restrictions as cannabis products. This means that companies operating in the hemp CBD market have more freedom to advertise their products, reach a wider audience, and capture a larger share of the market.

As a seasoned finance expert in the cannabis, hemp, and CBD industry, I see the growth and evolution of this market firsthand. I’ve been in the industry for many years and have a deep understanding of the financial aspect of the market. It is clear to me that cannabis companies should consider expanding into the Hemp CBD market in order to secure a larger market share and mitigate risk during economic recessions.

Let’s look at the growth potential of the US hemp CBD market. According to a report by the Brightfield Group, the US hemp-derived CBD market is expected to grow from $5 billion in 2018 to $23.7 billion by 2023. This represents a staggering compound annual growth rate of 107%. As the market grows, so too does the number of consumers seeking high-quality, reliable CBD products. Cannabis companies that enter this market can capture a larger share of the growing consumer base.

Second, hemp CBD is a highly versatile product that can be used in a variety of consumer goods, from topicals and tinctures to edibles and beverages. This versatility opens up numerous avenues for revenue growth, as companies can tap into multiple consumer segments with a single product.

Additionally, hemp CBD products are legal under federal law, meaning that companies can operate on a larger scale without the restrictions and limitations associated with the cannabis plant.

Finally, the hemp CBD market is less crowded and more accessible than the traditional cannabis market. This provides an opportunity for cannabis companies to establish a strong brand presence and capture market share without facing intense competition. Furthermore, the hemp CBD market is growing at a much faster pace than the traditional cannabis market, providing companies with an opportunity to capitalize on growth and increase profitability.

In conclusion, the Hemp CBD market presents a unique opportunity for Cannabis companies to expand and secure a larger market share. With increasing consumer awareness, a stable revenue stream, lower cost of production, and a wider range of product offerings, companies can mitigate risk during economic recessions and build long-term growth and success. As a finance expert in the industry, I highly recommend that cannabis companies take advantage of this opportunity and consider expanding into the Hemp CBD market.

For advice and support with this opportunity, feel free to reach out.

About Don Hawley:

Partner at 2GoAdvisory Group, Don Hawley is a seasoned finance professional with extensive experience in the cannabis, hemp-CBD, and agricultural and serves as CFO/President of