Brightfield Group released “CBD: FDA Impact & the Path Forward” — its 2022 mid-year U.S. CBD report. It includes forecasts for two scenarios — with and without Food and Drug Administration (FDA) regulation — to help prepare clients for what to expect if FDA guidance delays continue and for changes in the market that would occur upon federal regulation.
According to the report, the U.S. hemp-derived CBD market is expected to reach $5 billion in retail sales in 2022. If federal regulation were to be implemented by 2024, sales are expected to reach $11 billion by 2027, driven by accelerated growth of ingestible products like capsules and gummies as well as increased acceptance by mainstream retailers. Without such guidance, the CBD market is expected to remain decidedly lower.
Since growth in the CBD industry is heavily dependent on FDA regulation, 2027 sales forecast to be over $4 billion dollars greater if regulatory reform occurs by 2024 than if no such changes are made.
The CBD industry continues to face challenges in the form of a shifting product mix and competition from other hemp-derived cannabinoids, though price compression has begun to subside, and the industry is increasingly attracting attention from large firms.
Report findings show that while waiting for increased oversight, companies have been seeking to define CBD’s place in the wider wellness landscape and using tactics like creating non-CBD products that can be sold through mainstream outlets and partnering with retailers who do not sell CBD to increase distribution and reach a novel base of consumers.
Brightfield Group is a research firm for emerging categories including CBD, cannabis and wellness. By integrating multi-source data with AI and research expertise into its cross-comparable data lake, it uncovers robust insights as new markets develop.