Here's Why 2020 Is The Breakout Year For CBD

There is no doubt that CBD is on the rise, and it looks like its popularity won’t stop growing over the next decade.

There is no doubt that CBD is on the rise, and it looks like its popularity won’t stop growing over the next decade. Its favorable legal status in many countries, as well as recent clinical studies and research, have helped it become a normalized health supplement that is now present in many households.

Proof of CBD’s upturn can be clearly seen by looking at its status in the global market, geographic trends, and other key aspects. If you’re interested in what we consider will be CBD’s golden age, you’ll find the following data quite interesting. 

According to recent research, the global CBD market was valued at USD $367 million in 2017. It grew to USD $3,088.51 million in 2018, and is expected to grow to over USD $2.1 billion by 2020. It’s also estimated to register a 125.5% CAGR (Compound Annual Growth Rate) between 2019 and 2026. This alone already shows incredible growth in terms of production and sales. Promising! 

If we look at the regions of the world where CBD is most popular, North America represents 78% of the CBD market. In the US, around 14% of the population is currently using CBD. Europe follows with 12% of the global market, the Asia-Pacific region represents 9%, and finally, Africa and the Middle East represent only 1%. 

This data makes it clear that the US is currently leading the market. In the US alone, there are over 800 companies that sell CBD in its different forms. Additionally, most popular news stories and hemp-related activism are centered on the North America market. 

Despite the USA being the current market leader, Europe may be the next region to keep an eye on, particularly for those eager to enter the CBD market. 

A recent report by the leading market intelligence firm for the legal CBD and cannabis industries, the Brightfield Group, estimates that the CBD market in Europe will expand dramatically during the next four years. The CBD market was estimated at $318 million in 2018 and is expected to grow over 400% through 2023. As the first predictive study of the CBD market in Europe, this data provides a promising and exciting outlook for the continent.

The Brightfield Group report also provides other interesting data for the European market. The report highlights that the UK and Austria are currently leading the CBD market, with $80 million each in 2018. It also foresees that Germany will experience considerable growth and possibly outdo its neighbors. The report highlights other countries, like Switzerland and Spain, that are focusing on product-quality policies and how that could be a market advantage in the near future. 

Finally, one last growing market to keep an eye on is Latin America. With countries like Brazil, Mexico, and Colombia having a favorable legal status for CBD producers and users, the main concern to address is CBD’s affordability.