CBD is booming. But US farmers struggle to keep up with industrial hemp demand
Its Hollywoods new favorite beauty product. Its the superfood du jour. Demand for CBD is so strong that companies are scrambling to infuse their products with it, but the CBD theyre finding isnt all that great.
Congress legalized industrial hemp in December. With it, they also legalized hemp-derived CBD, short for cannabidiol, a cannabis compound that supposedly delivers the calming effects of marijuana without the high from THC.
Last year, retail sales of CBD consumer products in the U.S. were estimated at between $600 million and $2 billion, according to investment research firm Cowen. The bank conservatively forecasts sales to reach $16 billion by 2025, with health and wellness products leading the way and food, beverage, beauty and vapor to also play a role.
If the molecule is of interest and becomes broadly distributed, it will need to be far more efficient than what we have today, he said.