The CBD hemp industry has made a quantum leap with regards to changes in the product, and it single handily being able to start altering the landscape of pharmaceuticals and medicine. The landmark decision of the Farm Bill 2018 passing was by far one of the long-awaited decisions- one that has culminated over several decades.
With the Hemp industry now having its doors open before it, what can we expect in the coming years? The industry has after all ascended to astronomical heights, with consumer appetites rising through the roof! The CBD industry made less than $100 million in gross revenue, in the year 2009. In the span of 10 years, the CBD industry has begun to bring in $1 billion in sales, in the state of California itself. It is expected that by the year 2030, this could turn into a $ 5 billion industry.
What more does this legalization decision mean for CBD?
The Floodgates For Funding Are Open!
With the CBD industry humming along in the background since the past decade, there have been attempts to invest in these businesses, but the legal grey areas that hemp and CBD presented deterred several investors. There is no more reason to restrict and resist the temptation of finding these ever-green enterprises and investing in them.
The farm bill has kicked off any reason for worry from the end of investors. For starters, the CBD companies can now operate within conventional banking systems, and which will normalize most of their operations and transactions- there is no more the fear that you are doing something under the cover of darkness- this will make things more credible for the CBD products.
Hemp is now considered a crop now and hence is under the jurisdiction of the Department of Agriculture. This means that farmers and CBD manufacturers can now avail crop insurance, which will help rub off the burden of insecurity and fear in the minds of producers.
We can expect cash flow to come flooding into the CBD hemp industry, which will only boost the rate at which newer innovations in the field are being uncovered!
Prices Will Nosedive Soon Enough
There is a massive expansion that is solely dedicated to growing hemp for CBD, which means that the issue of artificial price inflation can be solved. In states such as California, where CBD and marijuana can be used recreationally, there has been a sharp dip in the prices. We can expect to see something of that nature in some time.
This is great news for patients and consumers, because the drop in price will make it more affordable, and this will increase the competition to create higher quality CBD products. Consumers will be riddled with choices, with high-quality CBD goods available at every corner of the shelf.
The news may not be as welcome to hemp farmers, as the lowered production of hemp was not sufficient to meet the CBD supply, and because of this farmers could charge premium prices. That is going to change going forward. It is highly unlikely that farmers will get the same price per acreage that they have been getting all of these years.
We Can Expect To See More Regulation
The regulation doesn’t sound like a welcome word, but in the world of wellness goods and health products, the more the regulation, the better. The CBD industry could really use some regulation. There are plenty of CBD manufacturers that have produced pristine high-quality CBD goods, that are rigorously tested and safety protocols followed. But at the other end of the spectrum, we have CBD suppliers that make use of shady practices, to make a quick buck at the expense of the consumer’s health and well-being.
FDA’s role going forward is still up in the air, and one can only speculate now. However, there is expected to be some industry standards and standard protocols relating to manufacturing hemp CBD, which will be implemented in the coming years.
For companies, it will mean that with stringent rules and regulations in place, the operating costs are going to rise. But that is alright since the consumer will be safer. There will be lesser space for snake oil salesmen to slither into the cracks within the system. CBD products can be expected to be more reliable and safer for millions of users.
All of this is good, as long as the regulations in place don’t restrict companies to such a point wherein only big players can operate. Competition is needed in the field of CBD products, and under no circumstances must that be stifled with- the consumer will end up paying the ultimate price.
The road ahead does look bright and pretty. It certainly is a great time to be a CBD user. If you are waiting for a time to jump on into CBD therapy, then there is no better time than now!