As a CBD entrepreneur, you might be wondering what the future holds for the cannabis market. The cannabis industry is booming, with research predicting that the market will be worth $43 billion by 2025.
As the US population becomes more aware of the potential benefits of CBD, new businesses are popping up all over to meet the growing demand.
In 2022, changes are coming in the CBD market. For example, new customer demographics mean expanded market share possibilities as more people see the benefits of CBD.
The diversity of CBD products will also contribute to the increased sales as a broader range of CBD products is predicted to be introduced in the coming year.
To help you get a better idea of what might happen over the next few years, we’ve compiled a list of the top 8 CBD business trends to keep an eye out for in 2022.
A New Era for the Cannabis Industry
Yoga, meditation and exercise have dominated the health and wellness industry for the better part of the last decade. Since they’re so relaxing and have various health benefits, many people get hooked on them, which is why we’ve seen such growth in the wellness industry over recent years.
However, there is a new kid on the block: CBD.
It’s no surprise that CBD is making its way into the health and wellness industry, as it was only a matter of time before consumers heard of the benefits and versatility of CBD products.
According to Google Trends, there has been a significant global increase in search requests related to CBD over the last year. This means that CBD is currently one of the most searched topics in the health and wellness industry.
This, in part, is due to:
The good PR CBD is getting from social media
Influencer marketing
Testimonies from CBD users enjoying CBD benefits
The growing trend in the legalization of CBD
The de-stigmatization and normalization of cannabis use
How Does CBD Fit in All This?
We are currently experiencing tremendous breakthroughs in CBD technologies that will be growing in the next few years.
Researchers are working on ways to increase the number of cannabis plants that are higher in CBD levels and lower in THC. Several studies are looking at the effects that CBD and THC may have on anxiety and psychosis-like symptoms.
We still have a long way to go, as the research on all the benefits that CBD has to offer just began. With growers actively coming up with new and improved ways to harvest this product for U.S. users, it’s only natural that technology will continue leveraging on their innovations.
As cannabis usage has become more common in the past few years, the benefits of marijuana seem to be outweighing the ongoing stigma. CBD-infused products allow more expanded audiences to leverage the benefits without directly inhaling, such as skin-infused products like lotions.
Top CBD Trends to Watch Out For
The year 2022 is right around the corner, and now may be the perfect time to look at influential trends to expect in the future CBD market. Here are the CBD business trends we are looking out for in 2022:
CBD Sales and Market Size Are Expected to Increase
The CBD industry has proven to be the fastest-growing, with sales averaging $3.5 billion in 2021. This happened a couple of years after hemp-derived cannabinoids were federally legalized in 2018.
According to the New Frontier, the CBD industry is estimated to triple in size by 2022.
Why such exponential growth? Well, there are a couple of factors contributing to that.
One of them is the increased public awareness of CBD products. With the growing acceptance of CBD as a health and wellness product, more people are willing to incorporate CBD into their routine.
According to a 2019 survey by Statista, 29% of people in the U.S. tried cannabis-based products, and 25% used them regularly. Only a small percentage (12%) never tried any type of CBD product.
Aside from the climbing interest in CBD’s healing qualities, continuous government approvals and the growing legalization trend is boosting the production of CBD-infused products.
As more entrepreneurs see opportunities in the space, the CBD’s market size is expected to expand at a compound annual growth rate (CAGR) of 21.2% from 2021 to 2028.
Availability of More CBD Products
There is currently a wide range of CBD products, which gives consumers an array of choices.
If you are a morning person, there is CBD-infused oil you can use in your coffee. You could also add a CBD-infused bath bomb at night to help you relax. Some other popular CBD products include:
CBD gummies
CBD salves
CBD capsules
CBD lotions
CBD creams
CBD companies are working on increasing the diversity in their products by introducing products that could hyper concentrate on each of the 100 minor cannabinoids found in hemp.
As companies grow and scale, we will start to see product formulations focusing specifically on minor cannabinoids found in the hemp plant. This potential exponential growth in the CBD industry is an excellent opportunity for cannabis entrepreneurs because it allows them to stay on top of the curve and lure in more customers.
As a result, cannabis entrepreneurs can develop innovative and easy ways to incorporate CBD into their health and wellness routines. That is one of the things we are looking forward to in terms of CBD product versatility in 2022.
Greater Customer Diversity
What was once a product for a stereotypical user has expanded exponentially in recent years.
As conversations around marijuana become increasingly transparent and we learn more about the CBD benefits, the plant is being seen as less of a “bad guy.” While many still partake in recreational use, others are using CBD for the benefits that it brings.
Back in the day, cannabis users were looked down upon. Today, 49% of the United States’ cannabis users have a Bachelor’s Degree or higher, breaking many of the stereotypes that existed for the better half of the 20th century.
The gender gap correlated to cannabis use continues to narrow with the higher percentage of cannabis users being females. Due to the pain-alleviating effects of CBD, many women use it as a natural pain reliever for menstrual cramps.
So, what’s next? The most unorthodox group entering the CBD world is pets.
Research has shown that CBD has the same medical benefits for humans and animals alike. This means when conventional medicine fails for your pet, CBD can be used as a remedy for chronic pain.
As the uses for CBD continue to expand, so does the customer base – an upward trend we will continue to see as more states decriminalize and legalize cannabis.
New Payments Processors in the Market Remains Unlikely
The selling and consumption of CBD have been illegal for many years, so it is no wonder that finding a good payment processor has proven to be a difficult task.
Many banks shy away from CBD companies and dispensaries because those businesses are still considered high-risk. Here at Merrco, we provide payment processing for our clients that is easy to use and interact with.
We do not anticipate a rise in payment processors available in 2022 for consumers to make buying their CBD products an easy and uncomplicated venture as there are no changes to risk and those uncomfortable with the market today are likely to remain so in the near future. With increased cardholder fraud activity, we at Merrco focus on keeping your business safe and secure from fraudsters with encrypted hardware and industry standards security.
More Growth to Legalization Movement
After passing the 2018 Farm Bill and the legalization of cannabis in some states, entrepreneurs are taking advantage of the now booming CBD industry. As a result, more states are making the use and selling of CBD products legal because of their medical use and economic benefits.
Like Connecticut, many states in the U.S. are moving towards the full legalization of CBD by May 2022.
The Hemp Economic Mobilization Plan (HEMP) Act of 2021 adds to a new era in the cannabis industry. The HEMP Act protects farmers from facing crop destruction when cannabis plants test above 0.3% THC. One of its significant contributions is to amend the definition of hemp from cannabis plants below 0.3% to plants below 1% THC.
Recently, states like Georgia, Hawaii and Minnesota have legalized CBD for medical use, with Connecticut aiming to fully legalize it by May 2022.
Customers Will Be More Receptive to The Benefits of Cannabis
Through the spread of social media, articles and medical journals, more users are getting acquainted with the benefits of using CBD.
The stigma surrounding the use of cannabis as it being a drug that gets you high is slowly getting debunked as more studies are educating people on what cannabis is and what it does. People now have access to many reputable sources of information on cannabis if they need more information on it.
With a majority of the U.S. states decriminalizing and legalizing cannabis, transparency in the industry continues to increase. The fear and consequences that came with cannabis use before decriminalization and legalization are fading over time, allowing for more honest and upfront discussions about cannabis.
More Research Will Be Done on Cannabis Uses
When it comes to the CBD business in coming years, one of the key trends will be an increase in research studies on different compounds found within the cannabis plant.
Cannabinoids, such as CBN (cannabinol) and CBG (cannabigerol), are minor compounds found in the cannabis plant. They have been linked to many benefits, such as relieving symptoms of neurologic disorders (e.g., Huntington disease, Parkinson’s disease, and multiple sclerosis) and inflammatory bowel disease.
One of the new cannabinoids emerging in popularity is CBG. While the studies done on CBD are further back, the research already done on CGB has shown its significant benefits in relevance to several health issues like inflammatory bowel disease (IBD).
Due to the entourage effect, more minor cannabinoids are going to be studied to improve the existing CBD products.
More Doctors Will Start Recommending Cannabis
With the continuing legalization of CBD in different states and more studies conducted on the use and benefits of medical cannabis, we can expect a rise in cannabis recommendations from doctors by 2022.
Doctors in the U.S. may recommend medical cannabis for conditions such as:
With new findings on the benefits of the cannabis plant and more states like Pennsylvania that are likely to legalize medical use by 2022, more doctors will start recommending cannabis as an alternative treatment.
Bottom Line
It’s exciting to think about the future of CBD and all its potential!
The market is continuing to grow, with more and more people interested in using it for their health, and we see new research come out every day that explores how this plant can be used to treat certain illnesses.
If you want to get started with selling or distributing hemp-based CBD products, contact Merrco for all your payment processing needs. We are happy to answer any questions about our services, just enter your information using our “Get Started Form,” and one of our experts will be in touch with you shortly.