Appearing as an alternative health supplement in tinctures and capsules some time back, CBD has quickly made its presence felt in several industries like cosmetics, beverages, skincare, health products, pharmaceuticals, and even pet products!
Research has made us already aware of the health benefits of Cannabidiol. But now, it finds out that these nifty hemp plants go well beyond health benefits and directly impact living. That is why it is registering a mad growth curve that is unlikely to fizzle out soon like other health fads.
The high growth potential of the CBD industry
The US CBD market is estimated to hit a massive surge in volume by 2022, bringing in USD 1.7-1.8 billion. Industry experts and pundits confirm that the US CBD market has recorded an incredible boom, with a growth of over 700% alone in 2019! The global CBD market follows a similar trajectory to register expansion at 21.8% CAGR within the next decade.
But what are the factors that are providing impetus to this growth?
One game-changer was the 2018 US Hemp Farming Act that removed Hemp or CBD from the list of narcotics or Schedule 1 controlled substances. Since it contains less than 0.3% THC by weight (responsible for psychoactive and psychotropic influences), CBD has ceased to be categorized as a drug. Additionally, the plethora of health benefits have been the primary ice-breakers and supplied the inertia to channel the legalization, thereby powering domestic supply and farming of hemp.
That’s not the end.
The entry of large retailers like Krogers, Walgreens, and CVS in the CBD market has created a massive spike in the growth rates of this specific industry. These growth trends also imply a higher availability of the product to the consumers.
Let’s find out the reason for their increased interest in the CBD market.
- CBD usage led to a noticeable reduction in pain and discomfort for 100% migraine and headache sufferers.
- Nearly 61% of adults reported reduced pain relief, 45.6% reported improved sleep patterns with Sunday Scaries. 8% of adults testified to better cognitive functions after using CBD. All in all, this wonder chemical improved their quality of life.
- From improved communication to anxiety reduction, 80% of children diagnosed with autism spectrum disorder exhibited substantial improvement after continued use of CBD.
- Epileptic patients also found CBD effective, with those ingesting 20mg reporting a 42% decrease of seizures and others consuming 10mg reporting a 37% reduction of the same. The decline ranges from removal of damaging side effects to reduced frequency to complete cessation.
- According to an article by American Kennel Club, helping manage anxiety by changing the brain’s response mechanism to serotonin, CBD has been relieving tension and stress in pets.
But the only way that consumers can realize these benefits holistically is through increased cultivation of the hemp plant. And the only way that is possible is by leveraging technology to the fullest. Let’s check out some of the technological trends that are powering the CBD revolution.
Top tech innovations that are causing large-scale disruptions in the CBD industry
With a CAGR of around 30%, CBD business has proven a safe investment for your future! The business has branched out from the use of cannabis oil and has been dishing out CBD-infused juices, coffee, and other edible products.
Technology has always been a deciding factor when a specific industry gains prominence.
But what are the tech innovations powering this change? Let’s take a look.
Technology-driven growth and cultivation:
From revolutionary biotechnologies that boost the growth of the hemp plant to controlled environments and settings like greenhouses and LED lights, the extensive use of innovations ensures more compelling CBD products. While hemp needs a regulated temperature and a particular spectrum of light to produce greater yields and grow faster, genetically modified hemp can fast-forward the entire process.
Improving the quality of CBD products and decreasing their price using high-tech methods:
Since usually, the body’s cells absorb only 10% of the cannabinoids when you are ingesting any CBD product, cultivators are trying nanoencapsulation of the cannabinoid molecules so that there is increased absorption through cell membranes. Preserving the compound during the cultivation process will result in better quality CBD products with improved efficiency.
But quality is not the only deciding factor. CBD extraction uses expensive machinery like the rosin press. An LA-based firm is innovating a revolutionary rosin press that applies more than 1900 pounds of pressure, significantly more than the usual 1000 pounds, thereby amplifying CBD production.
Personalized product development:
The uniqueness of our biochemistry lets CBD affect us in different ways. Since there is no one-size-fits-all product, CBD companies are increasingly inclining towards creating biochemically-tailored products for the consumers that will respond to their biochemistry and produce desired results.
The use of Artificial Intelligence:
The role of data science and artificial intelligence in the growth of modern industries is infallible. By leveraging the incredible power of big data to gain insights and access robust information regarding consumer behaviors, preferences, and product usage, a significant amount of headway is possible in research and analysis of CBD. These will result in impactful commercial decisions that influence branding, sales, and marketing and create more disruptive scientific trends.
Infusing the transparency with Blockchain Technology:
Blockchain technology is the technology of today. According to a Bloomberg news article, a startup in Vermont is already initiating blockchain integration in the CBD business to help consumers gain every information regarding their purchased products. These could range from the cultivation process, its place, date, presence of active ingredients, and even the names of the cultivators.
It would also result in safe payment processing, removal of banking barriers, and regulatory compliance. The establishment of blockchain integration in CBD will create a new industry standard and help companies gain competitive advantages.
Setting a transparency standard while maintaining quality control and assurance is imperative for industrial growth. Along with these, it is essential to ensure cost reduction, improve availability, enhance safety measures and maintain customer satisfaction. That is why entrepreneurial talents should make a bull-run to adopt newer technologies that streamline the entire spectrum of CBD business.