Nielsen says hemp-derived CBD will be $6 billion industry by 2025

In a recent analysis completed by the market research firm, Nielsen, researchers found that the hemp-derived CBD market will be a $6 billion opportunity by 2025. We’ve seen several numbers being tossed around in this range but no company as notable and reputable as Nielsen has yet released figures. Some estimates show that the market will be as large as $22 billion by 2022.

Size of the CBD market

So why are the estimates into market size so varied? Shouldn’t these companies generally be pulling from the same general set of data? They should be and they are; the variance lies in the fact that these research groups are trying to analyze a market that’s still largely unregulated and in its infancy. As we cover in our latest piece on the FDA hearings, we are still in the early stages of this market. This isn’t anything new for the types of studies that Nielsen puts out however. They cover early stage industries all the time. The difficult part of effectively analyzing this industry is the pending regulation. If the FDA decides to more heavily regulate CBD products beyond just those in food and beverages it could mean delays into the potential growth of the market. It likely wouldn’t effect long term growth but would just push the hockey-stick curve growth further down the timeline.

Edible CBD products may lead the charge

One of the main focal points of the article that accompanied Nielsen’s findings was that large food and beverage manufacturers should take note of this trend and consider working CBD products into their product lines. We’ve already seen this, for better or for worse, as CBD has been seen in everything from gummies to hamburgers. Nielsen is predicting that nearly half of this overall market volume in the US will come from the edible side of the market.

While there is no denying that edibles are an enjoyable, effective and easy way to consume CBD, unfortunately much of this quick growth will be gimmicky products that are produced by large CPG companies containing minimal quantities of CBD. As always, when purchasing CBD products, make sure that you’re doing your research and that the products you’re planning to consume have enough milligrams of CBD to get the desired effects you’re look for… or let us do it for you.

In conclusion, we’re excited to be a part of this rapidly growing industry and will continue to make sure we’re properly vetting all of the companies that we’re putting on our store and in our monthly crates.

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