Study: The Future Of The Hemp Business
BioMD+, an organic hemp-derived CBD oil brand, has released an infographic called “The Future of the Hemp Business.”
In the study, the brand explores the latest articles and scientific studies to showcase the current state of the hemp business in relation to its CBD products.
CMO Daniel Levitt told Benzinga the brand compiled the report to educate both consumers and entrepreneurs on the CBD-derived hemp industry.
“Businesses successfully entering this emerging, competitive space should be aware of the hurdles and capital required not just to manufacture CBD products, but also to strategically plan and budget for marketing," Levitt said.
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Why People Use CBD
CBD is most commonly used for anxiety and stress (37%), joint inflammation (24%) and poor sleep (10%).
When discussing the future of the hemp-derived CBD market as opposed to cannabis-derived CBD, it's important to point out that the hemp-derived CBD market is expected to climb to $22 billion by 2022.
“Despite the overlap, I believe these are two completely separate industries with differing goals," Levitt said.
"There are those focused on health and those focused on recreation."
BioMD+ is focused on the health market, he said.
The company's report outlines the demographics that make up the main consumer base for CBD.
By The Numbers
Consumers ages 18-29 represent 40% of sales, bioMD+ said. Thirty-two percent of users are ages 30-44 and users over 60 comprise 15% of the market.
CBD is sold 40% of the time at dispensaries, 34% at retail stores and 27% of the time online, according to the report.
CBD has helped 47% of users replace over-the-counter pain relievers, and 36% of users where able to replace their prescription opioids, bioMD+ said.
When discussing the future challenges faced by the hemp CBD industry faces, bioMD+ points to uneven regulation that varies from state to state as a primary obstacle.
Consistenty in product and the passage of banking laws that include CBD businesses are key factors in the sector, Levitt said.
“Due to the fact that these are uncharted waters, I foresee an underregulated climate turning into an overregulated climate in the short term. It will take a unified effort by the major players in the space to focus on educating the general public instead of simply seeking quick profits as well as working together to support common-sense regulation.”
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