All projections suggest that the CDB industry will make a significant leap of growth in 2020 and beyond. So far, the industry has gained ground, with close monitoring by various stakeholders. Although several aspects are still in the infancy stage, CBD products will undoubtedly take a sizeable market in the health, beauty, and recreational segments.
Australia is among the countries with a rapid domestic take-up on CBD products. Its market is also opening up to international investors and is likely to become a key hub for the thriving global cannabis industry. However, several factors will contribute to the growth of this industry, and regulation will play a key role in determining which direction it takes. Nonetheless, investing in CBD products is a great idea.
Here are seven reasons why you should invest in CBD products in 2020.
1. Increased Legalization of CBD Products
CBD is an issue that is both contentious and interesting. Many countries are offering overwhelming support to its growth through legalization. On the other hand, some states will hear none of the claimed benefits by CBD proponents and have taken a firm stand against its legalization. Such diversity of thought exists in various places around the globe. Currently, there are no universally agreeable guidelines regarding the cultivation, sale, possession, or transport of CBD products.
The Australian cannabis market valued at $3.89 billion includes both illicit and legal consumer spending. According to statistics, the current value of the legal cannabis market in Australian is at $17.7 million and anticipated to hit US$3 billion by 2028. The framework for legal access to Cannabis-derived products in Australia is restrictive leading to the low figures. But the recent regulatory reforms will make accessing the products easy, thus reaching a more significant population.
2. More Scientific Studies on CBD products
Scientific backing is an essential part of a growth that promises health benefits. With claims that CBD products are useful in uplifting mental, physical, and psychological backing, scientific evidence is necessary. Currently, scientific studies aim at confirming how CBD products can help in skin care, cancer treatment, anxiety, stress, as well as weight loss and eating disorders.
Several mice-based studies have confirmed that CBD products help reverse and avert some health conditions. Therefore, expectations are high that scientific evidence will provide sufficient proof of these claims. Alternatively, for a detailed overview, one can read up on the potential benefits of CBD oil and other products online.
3. New Customers to Try CBD Products
As a growing market, new users of CBD products will come on board, thus significantly growing the market. Although there is a minimal advertisement on the mainstream media, CBD products prominently feature and thrive in online markets, effectively helping in its popularity. Its growth as a treatment alternative to certain conditions is one of the reasons the number of users will rise. To try, one can buy marijuana seeds and extract CBD oil at the comfort of their homes easily.
4. Growth of Online Market Vs. Brick Mortar
The online market for CBD products has registered tremendous growth in the recent past. This growth is enabling many people to access CBD products. It also gives consumers a wide variety of products and vendors to choose from.
Brick and mortar stores also offer personalized customer service to CBD users who prefer buying in physical stores. However, the limitations such as geographical location and sometimes stocking of products from selected manufacturers keep off potential customers. This vicious competition will undoubtedly characterize the market in the coming days. Online stores, however, hold the highest potential for rapid growth.
5. Increase of Youthful Users
CBD products are suitable for all generations, and persons looking for recreational and medical-based products for any age have several choices to pick from. This notwithstanding, the number of youthful users is likely to increase with the popularity of methods such as vaping. Vaping is quickly becoming part of popular culture fancied by the younger generation. This will have a notable effect on CBD products.
6. New CBD Products and Flavors
The number of CBD products on the market is already overwhelming. From liquids, edibles, and inhalable products to products for the skin, they come in all forms and quantities. As new manufacturers enter the market and new regulations allow more processors, new products will flood the market. You can see a variety of products by just observing different review articles like Herbonaut’s review of CBD oils, and these are only oils, you can imagine the amount of other CBD products that are present out there.
A rise of products laced with a new wide range of flavors will also characterize the future market of CBD products. In Australia, the cultivation and manufacture of cannabis are low because the industry is still in the infancy stage. Considering that the sourcing of CBD products from other countries is a complex process and expensive, there is a vast market potential for home companies. There is a need for the development of the Australian CBD market as it will cut the cost passed to consumers.
7. Increase of Reliable Data
CBD is becoming a vital ingredient in many growing markets. In 2020 the CBD industry will see an increase in stakeholders providing statistical data relating to demographics, industry projections, customer preferences, and so on.
At the same time, more firms providing advisory to governments and organizations on the future of the CBD industry will come on board. These developments will help investors to focus on the most profitable aspects of the CBD business.
The future of the CBD market looks brighter. Legislative and regulatory developments are furthering Australia’s determined cannabis industry. In fact, Australia is fast rising as a leader in the Oceanic region following the footprints of Canada, a front-runner in the North American cannabis market. Besides, the ongoing global discussions on CBD might have a positive impact on CBD, allowing more nations putting favorable regulations on CBD products.