Despite legalising recreational cannabis last year, Canadians have limited access to CBD products. With the growing demand it's anticipated CBD will soon be prevalent in each province.
CBD is short for "cannabidiol" and is extracted from cannabis or the hemp plant. It's used for treating anxiety, pain, insomnia, and general discomfort, amongst other things. The benefits make it a popular alternative medicine.
The CBD market is set for astounding growth over the next decade. Businesses are taking advantage. New product ideas are catering to the boom in popularity amongst consumers.
The Appeal of CBD
Cannabis use dates back to 2737 B.C., so when did CBD come into the picture? Although discovered over 70 years ago, CBD's popularity is recent.
The legalization of cannabis is allowing people to feel comfortable learning about the benefits of THC products. What was once a stigma of illegal activity is now widely accepted. This is helping pave the way for CBD market growth.
Current law requires CBD products contain no more than 0.3 percent of THC, much less than that of marijuana. This causes no mind-altering effects since it doesn't trigger the brain's Type 1 Cannabinoid Receptor. Instead of causing a "high" feeling it provides a controlled relaxed sensation.
This makes CBD an alternative for cannabis users seeking other forms of relaxation. Or as an introductory method for those interested in cannabis products.
Types of Products
By 2022, the CBD industry is projected to be a $22 billion industry in North America and Canadian businesses are contributing to the growth.
Traditionally cannabis has been associated with smoking, but CBD's popularity is changing the product landscape. Companies are forming a CBD oil business plan by infusing it into everyday products such as food, pill capsules and vapour. This is in addition to regular items they sell.
The CBD oil market is allowing companies to expand product lines. Innovative consumption techniques are being developed at a rapid rate. Entrepreneurs are utilizing current products or creating new CBD based businesses altogether.
A variety of businesses are selling CBD products and increasing its public availability. This ranges from Shoppers Drug Mart to clothing retailer Urban Outfitters. Even companies like Coca-Cola are keeping a close eye on CBD's growing popularity.
Businesses are also thinking outside of the box for commercial products. CBD products aren't limited to human consumption. Pet stores are selling animal-friendly CBD treats to manage behaviour, appetite loss, and similar issues.
The Future of the CBD Market
Much opportunities exist for businesses to incorporate CBD into their consumer products, but it comes with some limitations.
Legalization allows only licensed manufacturers to produce commercially sold cannabis. With only so many sanctioned suppliers, the current supply may not be able to keep up with demand.
Consumers already are experiencing CBD shortages across Canada. This is because the high interest level wasn't expected compared to marijuana's legalization. The opportunity for breaking into the CBD market is there, it could just take more time.
Interested in learning more about CBD and the cannabis industry? Contact us with any questions you may have!