The CBD oil market is poised to grow by USD 3.5B during 2020-2024 and progress at an annual growth rate of over just over 30%, according to analysis by the market research firm Technavio.
They ground their projection on the health benefits of CBD oil, notably for chronic pain & inflammation, and on the continuing legalization of cannabis-based products.
Legalization would explain why two Canadian companies – Aurora Cannabis Inc. and Canopy Growth Corp. – cracked the top 5 of the market dominating firms (Canada legalized cannabis for medicinal and recreational use on Oct. 17, 2018).
Domination is the downside to the report: “The market is concentrated [read: monopolized], and the degree of concentration will accelerate during the forecast period,” says Technovia. Which explains state efforts to create social equity provisions in the cannabis industry – initiatives to reach individuals who have been economically disadvantaged or disproportionately impacted by the war on drugs.
Importantly, according to this report, states that have done so are projected to have total annual sales of $12.7 billion in 2022, compared with $4.1 billion combined for those without a social equity program.
In this age of a coronavirus-shattered economy where today’s lead story in the New York Times is “How Bad Is Unemployment? ‘Literally Off the Charts,’” how do you say no to social justice measures that when combined with the developing cannabis industry, create jobs and triple state incomes?