We have compiled the 2020 CBD statistics for your review. Due to the fast-rising nature of hemp-based CBD and its diverse applications, the industry is attractive to both consumers and CBD manufacturers. But what are the statistics behind the growth of CBD and what can we learn from it?
Value of the CBD industry
Although it is only one of 500 compounds (called cannabinoids) in the cannabis sativa plant, you wouldn’t know it from the popularity of CBD.
The compound has driven the rise of an entire ecosystem of producers, wholesalers, retailers and consumers – almost overnight. The industry only entered into full swing with the passing of the Farm Bill in 2018, which legalized hemp in the US. But today, the CBD industry alone is worth billions of dollars, and that is just a subset of the overall hemp industry.
CBD (cannabidiol in full) is an extract from strains of the hemp plant known for its low THC content. The compound is produced with less than 0.3% THC (a psychoactive cannabinoid) and is used in a wide variety of applications. This includes nutraceuticals, hair care, and skincare products. We’ve compiled this list of 2020 CBD statistics to find out.
CBD market to reach $4.7 billion in sales in 2020 – Brightfield Group
Although 2020 has been a hard year on the CBD industry, like many others, growth projections remain optimistic. The market is expected to reach $4.7 billion in sales in 2020, and up to $16.8 billion by 2025.
The growth figures represent a decrease from the initial projections for the year. The Brightfield Group had earlier reported that the market should reach $10 billion in sales, and eventually $23 billion by 2023. But with the impact that the pandemic has had, it’s at least great to see the industry can still enjoy some growth after the harsh year.
Market growth of 49% by 2024 – BDSA
According to Colorado-based research firm, BDSA, the CBD market is poised to grow by as much as 49% in the next four years. While the projections were made in September 2019, it is unclear how much the coronavirus will affect the projected growth rate.
People spend $20-$80 a month on CBD products – Brightfield Group
Regardless of the impact of COVID-19, the CBD industry continues to attract keen interest from consumers. The Brightfield Group reports that 44% of regular CBD consumers spend between $20-$80 a month on CBD products. In addition, 13% spend over $160 every month.
Use of CBD products CBD is being used in diverse ways – SingleCare
People are finding creative ways to use CBD. According to a SingleCare poll, the range of applications includes:
- 18% as capsules
- 18% as topical sprays
- 17% as edibles
- 13% as vaping products
- 12% as soaps
People who use CBD – Consumer Reports
For CBD use amongst age groups, 40% of people between 18 and 29 years old are reported to have tried CBD at least once. The percentage of other age groups that have tried CBD is:
- 32% of people between 30-44
- 23% of people between 45-59
- 15% of people 60 and older
64 million tried in past 24 months – Consumer Reports
Amongst Americans, 64 million people have tried CBD within between 2018 to 2020, indicating the fast rise in CBD use. In addition, 86% of people have heard of CBD and 33% have tried it at least once or more.
The Global CBD Industry
Hemp is mostly grown in Asia and South America – Brightfield Group
While the US is home to a fast-growing hemp industry, most of the world’s hemp production comes from Asia and South America. China has especially been one of the largest producers in the world to date.
European CBD market to grow 400% – Health Europa
The CBD industry is fast rising in Europe and is expected to grow by at least 400% in the next four years. This is largely due to the majority support for CBD production, with 77% believing the cannabinoid should be accessible in some form.
CAGR of global market is 30% for 2020-2024 – Business Wire
As more countries explore better ways to use hemp and its CBD products, the global market is expected to enjoy a compound annual growth rate of 30%. The rise of private label CBD manufacturers is also contributing to this as more brands are looking to explore the opportunities in the industry.
CBD online sales about 60% of the total – Limelight
More people seem to be opting for the safer route of ordering online this year, and this has been the case with CBD. Limelight reports that the total share of online sales for CBD has crept up to 60%. Could this be part of the impact of COVID-19 on 2020 CBD statistics?
Demand for workers in industry rose by 76% in a year – CNBC
CBD workers are in high demand. CNBC reports that the openings for skilled and technical workers in the industry rose by 76% in one year. While some of this is due to vacancies being created, a large proportion can be explained by the evolution of the industry and jobs being created.
CBD in the US – Sales and Statistics Hemp-Based CBD is legal in all 50 states
According to the Food and Drug Administration, hemp-based CBD is legal in all 50 states of the US, and Washington DC. That is, so long as they do not contain more than 0.3% THC.
Colorado with the highest CBD revenues at $1 billion – CNBC
Colorado has enjoyed the most CBD revenues in the US with an average of $1 billion a year. Considering the state’s pioneering role in the legalization of cannabis, this is only natural.
California sold most in 2019 – Statista
California accounted for the lion’s share of CBD sales in the US in 2019, with roughly $730 million in sales. Private label CBD products account for a large percentage of these sales.
Hemp farmland increased to over 288,000 acres – Brightfield Group
More and more people are getting involved in the CBD production value chain. As Food Business News reports, hemp farmland in the US has tripled since 2017, with more than 288,000 now cultivated. This may likely increase the number of hemp manufacturers and processing companies in the country as well.
CBD gummies are very popular – BDS Analytics
CBD edibles, especially CBD gummies, are some of the most popular forms of consumption. CBD gummies were the third most searched for food item in 2018, and continue to be very popular. They are expected to grow by 98%, perhaps because of their preference as a carrier for specialty cannabinoids.
Availability in US increased by 80% – Direct Selling News
The efforts towards legalization are certainly paying dividends. Reports indicate that CBD availability in the US has increased by 80% since 2018, and the growth trajectory only continues to rise.
70% of online CBD products are mislabeled – Penn Medicine
A study by Penn Medicine found that 70% of CBD products available online were mislabeled. Some included much less THC than they claimed, while others included more. This difficulty is largely caused by the delay in passing regulations for the industry. But it also underscores the importance of only buying from a trusted US-based hemp manufacturer.
So that’s it. These 2020 CBD statistics showcase all you need to know about the performance of CBD in recent years, and in 2020 especially. Although, with the ongoing impact of COVID-19, it’s anybody’s guess if things are set for an uptick or even slower growth rates.
Regardless, there’s no doubt that the industry is already punching well above its weight. And this is something every person interested in the industry will no doubt want to see more of.