Tag: cannabidiol

How common is CBD use?

33% of American adults have used CBD once or more. (SingleCare, 2020)

64% of Americans are familiar with CBD and/or CBD products. (Gallup, 2019)

An estimated 64 million Americans have tried CBD in the last 24 months. (Consumer Reports, 2019)

Of those who use CBD, 22% said it helped them supplement or replace prescription or over-the-counter drugs. (Consumer Reports, 2019)

Hemp-derived CBD products are legal in all 50 states, as long as they contain no more than 0.3% THC. (Food and Drug Administration, 2020)
In overall cannabis sales, Colorado tops the list, having sold over $1 billion since 2014. (CNN, 2019)

The top states for CBD sales in 2019 are California ($730 million), Florida ($291 million), and New York ($215 million). (Statista, 2019)

Of the Americans who use CBD, the most common uses are for pain relief (64%), anxiety (49%), and insomnia (42%). (SingleCare, 2020)
CBD web searches increased by 125.9% from 2016 to 2017 and 160.4% from 2017 to 2018. (JAMA Network, 2019)

United States hemp farmland increased from 25,713 acres in 2017 to 78,176 acres in 2018. (Food Business News, 2019)

CBD Edibles – The most profitable CBD products

As reported by Kush.com, Edibles are the only sector of the cbd industry that have had an 

increase in retail pricing due to scarcity and demand for quality kitchens and producers.

The CBD edibles market is currently dominated by CBD Gummies ranging from $25-$45 per 1000 mg.  

The popularity of cbd edibles is revealing enormous opportunity for CBD Brands to meet the national retail markets at local grocery stores, gas stations, Smoke/vape shops, MMJ dispensaries, and specialty CBD-Only retailers. 

RISK TO NEW CBD BUSINESSES:

As Bulk CBD costs continue to decrease, there is a short window to take advantage of the retail pricing and profit margins for CBD products. The retail pricing and profit margins will gradually decrease to reflect the growing national supplies of CBD available.

State of the 2020 CBD Market

Cbd is still fairly a new and scarce commodity, but it’s availability is rising. 

In 2015, supply couldn’t keep up with demand causing prices of up to $14k+ per Kg of CBD isolate and distillate. This pricing remained until the production of industrial hemp was nationally accepted and began to be produced throughout the country starting around 2018. 

As of 2020 the market has been flooded with hemp producers nationwide selling wholesale. A boom in hemp agriculture has brought the price to hover around $1200 per Kg of CBD isolate/distillate. The market is on track to bring that pricing down to as low as $700 per Kg by 2021 EOY.

Start Your Own CBD Brand!

CBD is legal in the State of Arizona. In 2014, a court ruling determined that CBD is medically useful for treating epilepsy. This means that buying CBD oil in Arizona is legal without a medical marijuana card, even though purchasing cannabis is still illegal. That’s because CBD can be derived from cannabis’ cousin industrial hemp.

This legality leaves open many business opportunities to start legal, cbd only, product lines for retail purchase without a license.

In AZ starting a brand is as easy as obtaining your LLC / TPT tax ID#,  becoming a certified commercial or “cottage” kitchen (if youre making an edible product), buying bulk materials and ingredients, packaging, and trademarking for your brand. 

https://www.azdhs.gov/preparedness/epidemiology-disease-control/food-safety-environmental-services/cottage-food-program/index.php

Implementations of rigorous testing and cottage or commercial kitchen safety standards apply per AZ food safety laws.

Contact our Consultants for more information and sourcing for your CBD!


 

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