The past two-plus years have proven to be a particularly challenging period—a time during which most retailers across the country have been exploring a host of different ways that they can leverage to improve operations, enhance efficiencies, and discover the next big growth opportunity.
For cannabis retailers operating in Canada, the next big opportunity could very well be linked to pending federal regulation around the use and sale of cannabidiol (CBD) and an emerging market around the product that’s showing incredible promise.
In fact, according to a report recently developed and published by Data Bridge Market Research, the CBD market is expected to rise significantly over the next half decade, showing a potential growth rate of an astounding 27.8% by 2029.
A potential growth rate of an astounding 27.8% by 2029.
It’s certainly an impressive rate of growth for an industry that has yet to even be given the opportunity to blossom in North America. However, given the regulated oversight that the product receives throughout most of Europe, as well as in other countries around the world, its popularity is noticeably gaining.
In addition to offering a prognostication concerning future growth of the CBD market, the report also provides analyses of the potential drivers influencing its rapid rise. Among them, the report suggests that advancements in technology related to state-of-the-art CBD drug treatments and a broader recognition within the healthcare sector of the range of possible benefits that CBD presents is helping to drive greater awareness around, and interest in, the product.
In addition, an increased focus among many people around the world paid toward their own health and fitness, as well as the wellbeing of family members and loved ones, is also creating a positive impact for the product. And, it’s also becoming clear to many that there are also a plethora of medical issues and symptoms that CBD can help relieve or alleviate altogether, including anxiety and stress, sleep insomnia, chronic pain, migraine headaches, skin irritations, seizures, joint pain and inflammation, neurological conditions, and more.
Impediments to Growth
Though the potentially positive impact that CBD can assert on the health of individuals and advancements within modern healthcare are becoming more easily detected by some, negative stigmas remain around the use of cannabis and cannabis by-products. This could partially inhibit growth of the market and prevent it, momentarily at least, from realizing its true value. In addition, the report suggests that some of the side effects associated with the use of CBD, including dry mouth, drowsiness, low blood pressure, and light-headedness may impede the future adoption of CBD for therapeutic use, further challenging the market’s growth.
North American Insights
The report also analyzes CBD market growth by region, rating the potential value of the North American sector higher than the global average, predicting a CAGR of 28.7% for the forecasted period of 2022-2029. And, given the slow yet steady acceptance of the cannabis industry here at home, which comes with a perception of increasing credibility among the general public, it seems to be only a matter of time before the real opportunities inherent in the production, use, and sale of CBD are realized.
In fact, acceptance of the product in Canada may be escalating, particularly with government, facilitated by long-awaited scientific research into the use of CBD within the healthcare sector and as an ingredient within health food products. And, on the heels of the research study’s findings, the Canadian federal government recently announced its decision to commence consultations and elicit stakeholder insights and feedback in order to begin developing a consensus concerning the development of a regulatory pathway to permit the use of CBD in products.
With government regulation around the production, use, and sale of CBD will come a number of different positives, including a more accessible product for consumers, the ability for manufacturer marketers to credibly claim health benefits, and massive opportunities for cannabis retailers across the country to capitalize on a still emerging market and further grow their operations and consumer-base.