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The cannabis industry has grown at a remarkable pace over the past couple of years, but it's often overlooked how quickly the CBD industry has grown during the same period. CBD is an extract from either marijuana or hemp and possesses wellness qualities, which is why it has already grown into a $1 billion dollar industry. However, many potential investors might not be fully aware of the industry. Here is a quick look at the industry and how things are shaping up.
The most important thing to mention with regards to the CBD industry is that it is legal and that is the most significant advantage for the industry. The passage of the Farm Bill in 2018 paved the way for that. It should be noted that cannabis is not yet federally legal in the United States. That being said, the United States Food and Drug Administration is exploring ways of regulating cannabis.
In the past year, the agency has clamped down on CBD companies for having made false claims on its product labels. The FDA is going to have a lot of say in how the industry progresses. The Farm Bill made hemp production and processing legal, which is why there is some Federal protection for hemp-based CBD produced. However, experts believe that state-level regulations for CBD could be quite complicated.
Currently, the market is valued at $1 billion but studies suggest that it could turn into a $16 billion industry by 2025 and that’s the reason why many investors are interested in the sector. The industry has grown at a breakneck pace and some of the companies have already emerged as leaders. However, the rate of growth has taken a bit of a dive for the biggest players. Despite that, an investment in the Hemp CBD sector is still considered a safer bet by experts when compared to the Cannabis THC one.