By Priest Willis
CBD industry could reach $22B in market size by 2022
Big businesses like Coca-Cola are exploring a move into the CBD business
Don’t call it a comeback because its been here for years. Cannabidiol otherwise known as CBD has skyrocketed in popularity, big businesses and people looking for health alternatives are taking notice. This non-psychoactive cannabinoid is one of over 100 naturally occurring in the cannabis sativa plant with a myriad of health benefits.
Why This Matters: CBD works in harmony with the body’s natural endocannabinoid system, helping to reduce inflammation and alleviate pain. It’s estimated that some 40 million Americans suffer from anxiety, which is likely one of the reasons CBD has become so popular. Current evidence indicates that CBD has “considerable potential” as a treatment for multiple anxiety disorders.
CBD is considered a safe and viable option for people interested in medical cannabis but don’t care for the psychotropic effects associated with THC. Simply stated, folks can get the same health benefits from CBD, without the high.
Not to be left behind in all these promising signs, companies like Coca-Cola (KO +0.71) are reportedly exploring the idea to create creating a wellness beverage infused with CBD. You can believe that other companies and verticals are sure to follow as the market trend rises.
Cannabis research firm Brightfield Group, recently raised its projections for the CBD industry, finding it could reach $22 billion in market size by 2022. Coke investors are probably very welcoming of this news as a strong revenue stream that will have a lot of upside. If the company is able to capture just 10% of the projected market size, it would bring in $2.2 billion in revenue by 2022.
Situational Awareness: There’s a reason this non-psychoactive cannabinoid has changed the way people think about cannabis and how well it works for countless health conditions. However, Coca-Cola stated “We have no interest in marijuana or cannabis. Along with many others in the beverage industry, we are closely watching the growth of non-psychoactive CBD as an ingredient in functional wellness beverages around the world. The space is evolving quickly. No decisions have been made at this time.”
CBx Vibe: “CPR” Summer Walker