How Innovative Technology Is Disrupting and Reshaping the CBD Market
Experts expect the CBD market to reach $16 billion in U.S. sales by 2025. Health trends, research, and expanded legalization also support the market’s growth.
There still needs to be more research, but initial studies show promising effects for chronic pain, anxiety, insomnia and more.
The CBD market has had its fair share of difficulties. Even though the 2018 Farm Bill made CBD legal, companies still face limited options and state barriers.
New CBD technologies are beginning to emerge in the market. These innovations may help improve market research, education, security, growth and much more. Read more to find out about CBD’s latest technology and where the industry is headed.
CBD Market Trends in 2020
Currently, the CBD market needs to brace for impact from a variety of regulatory issues. The U.S. doesn’t have many helpful federal regulations in place. The FDA has only approved one CBD product on the market, which is now used in pharmaceuticals to treat epilepsy.
Furthermore, the FDA has banned CBD in food and beverage products, though these are still some of the most popular methods for using CBD. The FDA states online that it’s still learning about CBD and its safety, but it’s lagging behind a market that’s ready for growth.
Companies are now moving forward to develop new technologies and CBD products. 2019 showed that big corporations are even ready to take the risk, with stores like Kroger and CVS adding CBD products to their retail stores. For 2020, we can expect even more adoption that may also lead to lower prices.
Market Research Technology
Especially in the U.S., current research limits CBD. Standard clinical methods don’t always work with CBD because of its close relation to marijuana as a schedule I drug. Without global CBD research, private companies are diving into their own market research.
Many companies are using big data to collect customer feedback and analyze it. They’re asking customers to answer surveys about their prior conditions, experiences, and symptoms. With this data, companies can see how products work and which ones have the most benefits for users.
These companies are also using machine learning to sort through big data and help deliver transparent insights. With more regulation likely coming down the road, it’ll be more essential for companies to show their data.
Improving Connectivity and CBD Education
Within the past year, most traditional social media apps have cracked down on CBD. These companies view CBD like marijuana and other illegal substances. Even though CBD is a federally legal substance, these companies view it in a grey area.
Since there’s still limited research into CBD, it can also be difficult for companies to post about benefits and education online. When it comes to advertising, there are even more roadblocks.
Major social media platforms like Facebook and Twitter crackdown on all CBD ads, as well as Google Ads. Even the FTC has pulled CBD ads from TV spots. Companies look to new technologies for connectivity since they’re limited by traditional methods.
New technology includes apps and sites dedicated to CBD education. Here, companies and organizations can post without censorship. Different content sites and news organizations are also creating specific CBD hubs.
In these spaces, users can provide honest, transparent reviews and information.
These spaces have become especially essential to cut through misinformation. Many companies promote CBD as some sort of miracle cure for every problem, but customers are savvier than ever. Dedicated sites and apps allow users to view trustworthy information in one place.
Blockchain for Security and Finance
One of the biggest challenges in the industry is investing in CBD and filling companies’ financial needs. Many traditional banks and financial industries won’t offer payment processing. These institutions fear illegal activity since they see CBD like marijuana.
These financial institutions view CBD in a legal grey area. Some products are illegal and others aren’t, which makes it complicated.
Some companies have issues where they’re granted access to a payment processor only to have it shut down. To help close the gap for CBD companies, new technologies are stepping up to offer payment processing specific to the industry. New technologies can provide enhanced reliability and security where other institutions have failed.
Some of this technology includes blockchain, which is a digital ledger that records transactions. It protects all data from interference. Blockchain ledgers offer real-time information. CBD companies can then show the data to banks, investors and regulatory agencies.
Companies hope that by using blockchain technology, big banks will begin opening up to CBD. The technology can help show proof of legal transactions.
AI in Growth and Manufacturing
As the CBD industry expands, many companies are relying on the manufacturing industry to stay on the cutting edge.
Through market research, companies can understand what type of benefits clients are looking for in CBD products. Using this information, they can collaborate with manufacturers to prioritize certain hemp strains. As customers expand their overall CBD use, new technology can also help speed up production rates.
Currently, many companies are beginning to use artificial intelligence to sort hemp plants faster. Others have also developed quicker processes for extracting CBD from the hemp plants. These technologies are advancing the speed to market from grower, processor, and manufacturer to the end-user.
New Products for Everyday Use
CBD is already popular in many forms including oils, topicals, vapes, and edibles. Heading into 2020, we’ll see many company’s product lines expand. At the same time, companies will begin to hone in on the trends that have been successful in recent years.
CBD shows similar benefits to pets as it does with people. Many users these days swear by CBD-infused dog treats. They can help dogs cope with anxiety while their owners away or while they’re socializing with other dogs.
As the market matures, we’re likely to see pet CBD used for more medical functions, including inflammation and pain.
CBD has also started to make its way into the lucrative skin care industry. Some studies show that CBD can be beneficial to users with acne and aging skin. CBD has proven anti-inflammatory properties.
Many people already use it to help treat symptoms of arthritis and chronic pain. Users can see these same properties to reduce the appearance of acne.
When it comes to fine lines, CBD carries antioxidants that may help rejuvenate skin cells. There is still limited research into CBD’s effects in most skin care, but active users are already happy with some of the results.
While CBD is already used for serious pain like arthritis, we’re also seeing more use for temporary relief. This may include applying CBD to sore muscles after intense workouts.
Companies have already been manufacturing CBD in topical forms like creams and salves. These days, they’ve started taking customer feedback to increase the CBD available in these products. Expect to see more CBD lotions with 1000 mg or more to help improve benefits in the outer layers of skin.
Innovative companies are aware of new products that may lead to market disruption in 2020. One of these products is cannabigerol or CBG. CBG is also a cannabinoid like CBD, but it’s only starting to become known in the market.
CBG differs from CBD in the ways it interacts with our bodies. CBD doesn’t interact directly with our internal endocannabinoid system. Research shows, however, that CBG may interact directly with this system.
Research into CBG is even more limited than CBD, but initial studies show that it may have similar effects. Users may use CBG for relieving inflammation, pain, bacterial growth and more.
Currently, you can buy CBG in most of the same product formats as CBD, including oils and CBG isolate powder.
What to Expect in the Future of CBD
As marijuana gains legality state by state, we can expect the CBD market to gain similar freedoms. More marijuana laws mean there will be more reason to research the cannabis plant. More research will lead to more guidelines through the FDA and other regulatory agencies.
One big trend to look out for is the possible separation of CBD from the vaping industry. Until recently, the two have been tied together. Many of the first CBD products were available in local vape shops.
The vaping industry has since taken a big hit through public attitude and regulation. As the industry moves forward, we can expect to see a clear separation and a bigger emphasis on CBD branding.
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