Indopedia All Things Marijuana
While everyone has been buzzing about widespread cannabis legalization across the U.S., the CBD market has also seen substantial growth over the past few years. According to a 2016 market estimate by Vote Hemp and the Hemp Business Journal, this medicinally driven industry reached an estimated value of $130 million.
At the moment, there are somewhere between 50 to 100 different hemp-based cannabidiol brands, as well as hundreds of growers that are strictly focused on cultivating non-psychoactive hemp plants. This unprecedented spike can be partially attributed to the increasing access that businesses have to wholesale CBD extracts. A practice known as “white labeling” allows producers to sell their oils and tinctures without branding, enabling companies to simply slap their own sticker on the packaging.
Although it might seem like the growing number of companies could potentially saturate this relatively new industry, reported annual profits state otherwise. For example, in 2014, the renowned CBD company HempMeds brought in $14 million in sales. Even newcomers such as Elixinol, saw its sales double from $2 million to nearly $4 million between 2015 and 2016.
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