According to the Association for the Cannabinoid Industry (ACI), the UK has ‘improbably’ become the world’s second-largest consumer cannabinoids market after the US, spending more on cannabis extracts domestically than vitamin B and C combined. The exponential growth for the CBD market in the UK is undoubtable.
The global cannabidiol market is expected to expand at a compound annual growth rate (CAGR) of 21.2% from 2021 to 2028. Sales of CBD are not solely being driven by trendy millennials jumping on ‘the next big thing’, but the sales are in fact spiking across a range of demographics, with the products being used for an assortment of therapeutic applications from anxiety and general wellness to the treatment of chronic pain and increased recovery times after sport and exercise.
In the wake of such a sustained period of growth, it is clear that the rise of CBD is clearly not a passing fad. In fact, it remains one of the few industries that has managed to be resilient throughout the Covid-19 pandemic and continues to witness strong demand heading in to 2022.
Rapid growth of the industry is continually being reported, showing the viability of CBD businesses. Research from Alphagreen, the UK’s largest marketplace for certified CBD products, suggests that more than eight million Britons are now buying CBD products, with spending in excess of £150m in the first four months of 2020. The increased focus on health and wellbeing following the Covid-19 pandemic and the expanding awareness of CBD benefits means there is a large gap for new businesses who want to make a difference to now enter the CBD market.
In terms of what’s to come for the future of CBD, businesses will have to remain adaptable and innovative to keep up with the ever-changing market. This will ensure a business will become a champion CBD brand and a ‘trusted health partner’ in the eyes of the consumer. Every industry faces its own challenges, but the CBD industry is unique in that it remains in a regulatory grey area. The ambiguity creates a host of novel challenges in financing, marketing, and producing products.
CBD companies currently offer a pretty wide range of CBD products. Nevertheless, this diversity will continue to increase as more companies introduce products that hyper-concentrate on each of the 100+ minor cannabinoids found within the hemp plant. Formulations focusing on Cannabinol (CBN), Cannabigerol (CBG) and other compounds and mixes will be developed for specific use cases. New businesses will have to keep up with the expanding industry in order to remain relevant and ahead of the competition.
It is also expected that more big-name brands will enter the market through the acquisition of pre-existing CBD market leaders. Corporate giants will look to diversify their current product lines with CBD and add brand-new products that will open other large avenues of growth for the market.
There is no guarantee for the future of CBD, a business must simply steer through challenges as they come and overcome these challenges in a way that allows the business to grow and develop. It is believed that laws will relax in the not-so-distant future to solidify the status of CBD soon, removing barriers to innovation, safety and, ultimately, the normalization of the industry. When that happens, even more market growth is on the horizon for CBD.
The CBD market, although currently thriving, is not guaranteed for the future. With a lack of certainty, CBD business owners must take each day as it comes and prepare for all possible scenarios in the market.
Be sure to let us know what you think about the rise of CBD and its future in the UK, in the comments section down below.
