In 2018, the global cannabis industry’s revenue surged to $12.2 billion, according to BDS Analytics. This year, that number is expected to explode to $16.9 billion.
All thanks to powerful demand from consumers.
For one, ever since the 2018 Farm Bill was signed into law, cannabis has disrupted some of the biggest consumer products in the world, including foods and beverages, pharmaceuticals, cosmetics, and the $4.2 trillion health and wellness market.
For example, privately held Arizona Beverage just announced that it reached a licensing deal with Dixie Brands, which makes and sells drinks, chocolates, gummies and topical creams that are laced with cannabis. Through the partnership, Dixie, which operates in six U.S. states, will manufacture and distribute products branded with Arizona’s name.
Jones Soda just jumped on the bandwagon after Heavenly Rx – a hemp portfolio company of cannabis investment firm, SOL Global Investments – invested $9 million to buy 15 million shares. That investment now brings SOL Investments’ stake to 25%.
Even former Kellogg North American President Paul Norman is betting big on growth. “This market is going to grow four or fivefold to 20 plus billion dollars in consumer value over the next five years,” he says, as quoted by Yahoo Finance. “I believe, down the road, CBD will be widely available in all kinds of consumer products.”
Major retailers have jumped on board, too, including Neiman Marcus, Sephora, CVS, Vitamin Shoppe, Kroger, Barney’s, and DSW.
Constellation Brands partnered with Canopy Growth Corporation. New Age Beverages is producing and distributing a new line of Marley+ CBD drinks, , including Mellow Mood, a relaxation tea with CBD. Anheuser-Busch InBev announced a partnership with Tilray to research non-alcoholic beverages infused with THC and CBD. Heineken subsidiary Lagunitas even just partnered with cannabis company AbsoluteXtracts.
Rest assured, this may be the start of something much bigger for CBD. Stay tuned.