U.S. hemp-based CBD industry expected to reach $6 billion by 2025
Nielsen predicts that, by 2025, the U.S. hemp-derived CBD market could be a $6 billion industry when considering legalized sales of food and beverage products containing CBD from hemp.
Within the United States, non-consumable, hemp-based cannabidiol (CBD) products have been popping up on shelves within major retail outlets—and are generating a big buzz, according to Nielsen. Except for states in which marijuana is legal, edible products containing CBD from hemp remain regulated by the U.S. Food and Drug Administration (FDA). The agency has begun hearings examining the potential deregulation of CBD from hemp within food products.
And this potential legalization of edible CBD from hemp could have a major impact on the U.S. consumer packaged goods (CPG) industry—particularly for the snack and confectionery category. Nielsen predicts that, by 2025, the U.S. hemp-derived CBD market could be a $6 billion industry when considering legalized sales of food and beverage products containing CBD from hemp.
Today’s shoppers are increasingly seeking out snacks with added health and wellness benefits. Lockstep with this smart snacking trend, some believe that adaptogens and botanical hemp extracts that naturally contain CBD could be the next frontier in snacking. While these types of ingredients are still very niche in nature, they are certainly gaining the attention of many due to their purported abilities to naturally impact wellness.
Some future CBD consumers may look to CBD-infused food offerings to enhance focus, relaxation, and to assist in promoting their general health and wellness. For others, consumption may be geared toward targeting specific ailments such as feminine pain, digestive issues, and sleep disorders. Therefore, according to Nielsen, CPG snack companies interested in reaching these consumers should start factoring various need states, use cases, and snacking occasions into their R&D equation.
One caveat regarding the opportunity edible CBD from hemp presents is that the market is in its infancy in the United States. In addition, it’s incredibly volatile given factors such as changing state and federal regulations, supply issues, and retail/manufacturer and consumer sentiment and acceptance. Therefore, it is critical to recognize that the market size prediction is just a snapshot vision of what tomorrow could look like and is certainly subject to change based upon newer information.