When the 2018 Farm Bill passed, legalizing hemp, millions of sales were made possible. Since that time, the CBD industry has grown substantially. According to information from the National Retail Foundation, in 2019, the sector grew by more than 700%. According to data from Brightfield Group, the market is projected to reach $22 billion by the year 2022.
After the Brightfield Group conducted a new study in July 2020, it is projected the numbers are going to continue to fall because of the impact of COVID-19. There are a few reasons for this reduction, and while the long-term effects are still unknown, some experts believe the CBD or hemp industry may come out of the pandemic the same or better than before. This is partly related to the availability of products and more options at i49, but also because of the desire for people to have something to rely on in times of uncertainty.
The Impact of the Stay at Home Order
One of the main issues, especially for brick-and-mortar stores, was that when the stay at home order was issued, it forced individuals to remain at home unless it was essential to get out. While some locations provided customers with delivery or curbside pickup, others were forced to close, at least for a while. This led to more online shopping, which is something that was positive for brands that already had an established online presence. In June of 2020, approximately 45% of CBD users started to shop online for the products they wanted to use, with around 54% of them making a change from a brick-and-mortar store.
The Impact of People Losing Their Jobs
Even though many people look at CBD favorably, they still come at a cost. With the unemployment levels growing to more than 11% in June 2020, it isn’t a big surprise that many people have avoided CBD purchases. Also, hemp farmers were required to lower the cost of hemp crops because of a reduction in supply from $38 per pound to $8 per pound.
Increasing Legalization Efforts
As more and more states are hit with certain tax shortfalls caused by the pandemic, tax revenue that may be seen from cannabis legalization may become more attractive. Like alcohol, which saw an increase in sales of 240% when the lockdown started, the people who sold cannabis legally have also seen record sales during this crisis. The possible tax revenue increase is not something that is going to be overlooked by most legislators.
There is no question that the pandemic has been quite a stressful situation for most people. The top ailment that CBD is being used for is treating cases of anxiety. Some heavier users have actually increased their total consumption. The use of CBD for depression and insomnia has also grown in recent months.
CBD and the Pandemic
When it comes to CBD usage and the pandemic, there is no question that it could be positive. While there are some potentially negative side effects related to what is going on in the world, it does not mean that this industry is going anywhere anytime soon. In fact, as things continue down an uncertain path, people turn to products like CBD for help, which secures the industry now and in the future. This product is one many people can benefit from, and those who have never tried it should.