In a word, yes. A better question is “When will this be a billion dollar market?”. CBD products are legal in all 50 states. Media outlets all across the country are talking about this “miracle plant”.. and for good reason. With such a vast array of benefits, hemp has become a huge cash crop, and this is just the beginning.

 

recent analysis from The Brightfield Group predicts that the CBD-hemp market could be worth $22 billion by the year 2022. By the end of 2018, the industry is set to reach $591 million. Which means if Brightfield is correct, in a mere 4 years, the market would grow by 37 times! With this massive increase in demand, we will see a huge variety CBD and hemp related products popping up all over the country, in pharmacies, supermarkets and even stores like Wal-Mart are considering carrying CBD.

 

This is because hemp works. The proof is in the pudding. People all over the world are utilizing this plant to make a better life for themselves and their families. Not only can it increase health (link to article or study), but also provide sustainable and organic food, fuel and fibers [1]. For these reasons, hemp cultivation and production is skyrocketing.

 

CBD And America’s Growing Health Crisis

 

In the United States, chronic illness is on the rise. Many pharmaceuticals only treat symptoms, rather than the root cause. They are often expensive and come with a myriad of side effects. For this reason, millions of Americans [2] are turning to natural solutions, such as diet, lifestyle and supplement choices, to enhance health and well being. Cannabis is proving to be a highly effective solution to many chronic illnesses.

 

Americans are sick and in pain. An estimated 25.3 million Americans experience daily pain. A report found that 60 to 70 million Americans suffer from some form of digestive disease [3]. Mental illness is also on the rise, with 7.7 million Americans suffering from PTSD, 40 million from anxiety, and 8.1% of American adults reported suffering from depression. This is not to mention the millions of Americans suffering from skin, brain, heart, sleep and immune system disorders. CBD and marijuana have proven themselves to be effective remedies for a wide range of physical, emotional and mental suffering, including those listed above [4].

 

This means there are MILLIONS of Americans suffering from disorders that CAN be helped with CBD. The potential market is huge. CBD is here to stay, not because it is a “fad” or a buzzword. On the contrary, the use of CBD will continue to spread because it works. America is faced with many health problems, and CBD offers solutions [4].

 

Some Promising Statistics

 

From 2016 to 2017, amongst the top 10 hemp-growing states, the number of acres leased for hemp cultivation increased by 140%. During that same time, hemp producers doubled. In fact, hemp producers in Oregon, Tennessee, and Vermont nearly tripled. Even though laws and regulations are still being established, investors and farmers are heading in strong to this emerging market. The only thing that can hold back this industry now, are restrictions and regulations that limit hemp production, cultivation and importation. This seems unlikely, because each year, cannabis laws become looser, with many states legalizing medical, and even recreational, marijuana.

 

The Growing Marijuana Market

 

Lets look beyond hemp for a moment, and consider Marijuana as well. When we combine these two markets, it is impossible to deny that cannabis is a cash crop. In fact, when we look at the legal hemp and marijuana markets, it is already a billon dollar industry. That is not to mention the potential markets from legalization.

 

Whether the government likes it or not, millions of Americans enjoy marijuana, regardless of it being federally illegal. This means the majority of money circulated in the marijuana industries goes to the black market; untaxed and unregulated. Without regulation, consumers have no idea what is in their weed, and with strict laws, the state and federal governments are missing out on huge profits each year. In Colorado alone, yearly marijuana sales have progressively and significantly increased since legalization. Below is a chart of these sales, courtesy of the Colorado Department of Revenue.

 

Calendar Year Total Marijuana Sales Total to Date
2014 $683,523,739 $683,523,739
2015 $995,591,255 $1,679,114,994
2016 $1,307,203,473 $2,986,318,467
2017 $1,507,702,219 $4,494,020,686
2018 (Jan – Sep) $1,157,781,963 $5,651,802,649

 

On a state level, the taxes received from each year can be observed below.

 

Calendar Year Total Revenue
2014 $67,594,323
2015 $130,411,173
2016 $193,604,810
2017 $247,368,473
2018 (Jan – Oct) $223,300,334

 

Legalization Is Inevitable

 

This is just one state of 50. State and federal governments are missing out on a huge industry. The legalization of marijuana is inevitable, as many are realizing that marijuana is safe and effective. Alcohol, which is legal, taxed and highly regulated, has an estimated 88,000 annual alcohol related deaths, whereas marijuana has zero. It is strange that the two have such different laws. It is reasonable to assume that these laws have little to do with safety.

 

In the past month, Canada has legalized cannabis. This is one of the first countries to completely legalize and regulate cannabis, and as such, is setting the bar for many others. Taxes are similar to Colorado and depending on the province, they will be as high as 15%. Conclusive numbers on sales and profits have not been released yet, but we are excited to see what comes from the first quarter, and first year, of nationwide legal cannabis. Depending on Canada’s success in the coming years, they very well may motivate other countries to follow suit.

 

To Conclude

 

Currently, the direction of laws and regulations for cannabis are unclear. However, if we look at the likely outcome in the long term, the United States, along with other countries, will begin to legalize and permit the use of cannabis. This includes hemp and marijuana. Many investors and businesses are jumping in now, to get a foot hold in the market before it blows up. However this is based on speculation that laws will become more and more loose. For now, we will just need to wait and see. With the current administration, and its unpredictable behaviors, there are many big question marks.

 

Patriot Hemp

 

At Patriot Hemp, our mission is to provide high quality CBD oil to those who can benefit from it. We focus particularly on government employees, veterans, people suffering from PTSD, military personnel, nurses and those in positions of service. That is why we offer several CBD products that contain zero THC. This means you can enjoy all the benefits of CBD without the risk of THC. Find our products and more at http://patriotcbd.org/

 

 

 

[1] Craig Schluttenhofer, Ling Yuan (2017) Challenges Towards Revitalizing Hemp: A Multifaceted Crop 917-929

 

[2] What Complimentary and Integrative Approaches Do Americans Use? (2012)

 

[3] Digestive Disease Statistics For The United States. (2014)

 

[4] Jamie Corroon, Joy A. Phillips (2018) A Cross-Sectional Study of Cannabidiol Users 3(1) 152-161