Even though CBD has been around for years, many are interested in it more now, than ever before. As countries are either considering legalizing or moving towards the legalization of marijuana and cannabis products, demand for CBD is only expected to grow further.

What is Cannabidiol?

Cannabidiol, or widely known as CBD, is the non-psychoactive compound that is found in cannabis. Its popularity strives from its numerous health benefits. The reasoning for its popularity is that CBD is the non-psychoactive compound (that has a similar extraction process to CO2 extraction) of the plant. It is not the part of the plant that will get you ‘high’. While recreational use of marijuana is only legal in a handful of states in the U.S. and full legalization in Canada, many feel that the thriving cannabis industry is thanks to the CBD industry. The CBD industry is expected to generate $16 billion by 2025.

hemp, cbd

Source: Medium.com

Why Consumers See Promise in CBD

As briefly mentioned, the sudden popularity of CBD is thanks to its newly publicized health benefits and the focus of marijuana legalization. Apart from helping those who suffer from seizures and epilepsy, many CBD users find relief for lessening degrees of anxiety, depression, sleep troubles, pain, and even inflammation.  As CBD is being incorporated into a number of ingestible items such as food, beverages, skin care products and even capsules or oils, consumers can easily incorporate it into their daily lives. CBD is also praised as it can help allow individuals suffering from health issues who wish to lower the quantity of prescription or over-the-counter medication they require. Allowing for a more ‘natural’ alternative in some cases.

medical conditions

Source: Infinite CBD

It’s also worth noting its positive effects elsewhere, specifically within the animal and veterinary sector. Many view the non-psychoactive compound to be helpful in cases where dogs are suffering from seizures and epilepsy, chronic pain, anxiety and even loss of appetite.

Popular Cannabidiol Products

Food & Beverages

If done correctly, CBD can be infused into nearly any food or beverage item on the market. In 2018, Molson Coors, a popular brewing company, and HEXO Corp., a popular consumer packaged goods cannabis company, announced a joint venture. This venture was for developing a new product and paving the path in a new industry. It will include creating a new non-alcoholic, cannabis-infused beverage for Canadian consumers once edibles are legalized later this year.

However, alcoholic or brewing companies are not the only ones who are looking to make a name for themselves in the CBD industry. Many food and non-alcoholic beverage companies are also looking to add CBD offerings to their menus. From cannabidiol infused cookies to coffees, the options seem endless. This is due to small and large sized businesses continuing to announce their experimentations with the plant extract.

Skin Care Products

CBD can be infused into nearly anything and many brands are trying to be ahead of the trend by offering niche beauty products containing CBD. From lotions to face serums, many look towards CBD skin care options as cannabidiol holds anti-aging, anti-inflammatory and pain relief benefits for some when used topically. In fact, many are starting to look at it as a vitamin when it comes to skincare. While the science is not clear, many believe that CBD has sources of antioxidants and beneficial amino acids.

Capsules, Oils and Tinctures

One of the most commonly known methods of taking CBD is through capsule, tincture, or oil form. Ingesting CBD as a capsule is popular as once the CBD is extracted from the marijuana plant, it can be transferred into pill form. For health benefits, many may prefer this method of consumption as they can easily receive the benefits of CBD once digested and processed. In comparison, CBD can also be ingested through oil form. While CBD oils and tinctures may appear similar, there are a few differences that can affect which form is used. Differences include how CBD oils can be easily vaporized and have a distinctive taste, in comparison to CBD tincture which is unable to be vaped and has a taste that is easy to mask in cooking.

cannabidiol, CBD

What the CBD Trend Means for Investors and Cannabis-Focused ETFs

But what exactly does all of this mean for the industries affected? It means that consumers are going to expect more businesses to broaden their offerings. And the businesses who jump on the CBD trend will ultimately gain the trust and loyalty of consumers, in comparison to those who are late to the game. Meaning, they will be able to dominate this new industry and be part of the few who will help it grow. In the U.S., cannabidiol (CBD) consumers sales are expected to hit approximately $813.2 million.

If you’re interested in following the industry leaders who are dipping their toes in this disruptive field, review our cannabis-focused investments. With a varied set of holdings of emerging companies and leaders in the cannabis industry, the Evolve Marijuana Fund (SEED) and the Evolve U.S. Marijuana ETF (USMJ) are diversified options in this space.

There are a number of ways to be involved in this active industry. Keep up-to-date with the latest information on marijuana and cannabis-related products by following our blog and subscribing to our newsletter.

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