Report expects CBD market to surpass $1 billion in three years

Report+expects+CBD+market+to+surpass+%241+billion+in+three+years

Logan Lowrey-Rasmussen

According to a new report, the cannabidiol (CBD) market is projected to hit $1 billion in three years.

Brightfield Group estimated CBD sales had already reached $170 million in 2016 and a 55 percent compound annual rate through the next five years could cause the market to pass $1 billion.  Cannabidiol (CBD) is a compound found within the cannabis plant which possesses medical qualities but no psychoactive effects which causes a high. 

The data company determined 64.5 percent of CBD sales come through the online channel followed by 17.8 percent at smoke shops. Dispensaries ranked third with only 9 percent of sales while health stores and doctor’s offices rounded out the top five. Top twenty brands averaged sales of $2.1 million per year per company in 2016, but 79 percent of the market is made up of companies with comparably low sales.

Bethany Gomez, the Director of Research at Brightfield Group, said she was most surprised at how many companies are currently operating, but how few are generating significant revenue. She said the issue stemmed from government regulations which prohibit traditional marketing and make it harder for companies to connect with their core consumer.