Learn how CBD investments became a major player in the market and how it can help you grow your investment!
In this article:
- Investing in the Power of CBD
- The Shift of Wellness Environment Toward CBD
- THC and CBD Companies Competition
- How To Invest In CBD Inside Your IRA
- Performance of CBD Investments Through the Years
CBD Investments Set for Huge Growth
Investing in the Power of CBD
Cannabis contains a compound called cannabidiol (CBD). This compound is typically used in creating some prescription drugs.
Unlike tetrahydrocannabinol (THC), this compound doesn’t get you high. It can actually treat specific symptoms and is effective as preventative medicine.
CBD comes from industrial hemp or marijuana plants. In today’s market, CBD products are now widely available.
The Hemp Business Journal, a leading organization for hemp marketing research, estimates that the cannabis and hemp industry has great market potential. They believe that by 2020, the industry will have a rapid growth to approximately $2.1 billion in consumer sales, where 21% of these sales come from hemp-based sources alone.
Based on this projected growth, CBD growth is looking at an increase of 700% from 2016 figures. Investment advisors, such as Greenwave Advisors, also believe that the CBD market growth could go up to $3 billion by the year 2021.
Recreational marijuana users show interest in trying CBD as a substitute. Even non-marijuana users show the willingness to learn about the benefits of CBD extracts as they also believe that it has strong potential for market growth.
The Shift of Wellness Environment Toward CBD
The health and wellness industry is growing rapidly. Associated with this growth is the shift towards medical marijuana. Cannabis companies, like Marijuana Company Of America Inc. (MCOA), are working to give consumers access to cannabis products and technological advancements.
MCOA continues to innovate, test, and provide hemp-based cannabinoid products. The company also commits to supporting sustainability by creating pure green CBD-based products and technologies that bring a positive effect on the environment.
Additionally, MCOA focuses on giving the necessary awareness to consumers by allowing them to take part in the hemp movement. Consumers gain the opportunity to try innovative hemp products first hand.
Industry insiders have also started to target the CBD market. In fact, over 800 CBD-based products are now available in the Washington marketplace.
While the wide availability means that consumers have high regard towards using medical cannabis products, it also creates challenges for many consumers. It makes it more difficult for them to choose which products they should buy.
While there is a lot of feedback among consumers using medical marijuana products, people have to undergo a trial and error process. Individuals have to do their own homework and have to know whether the products work for them by giving it a try.
THC and CBD Companies Competition
Over the years, there have been several dramatic changes in the legal cannabis industry. Some factors of these changes include the competition among CBD companies and the stronger demand for legal cannabis products.
Medical Marijuana, Inc., one of the current market leaders in the industry, sees continued growth in their sales for hemp-based CBD products. The company had a total sales of $26.5 million in 2017, which showed rapid growth compared to their initial sales of $5.06 million in 2013.
Four years ago, consumers paid $1.25 per milligram for medical marijuana and were buying less of it. At the end of 2016, it had fallen to $0.025 to $0.04 per milligram but with a greater increase in sales. The increased competition in wholesale distribution among CBD companies in the market is primarily responsible for this decline.
General Hemp is another major player in the CBD industry and has made over $34 million in CBD sales from 2014-2016. Axim Biotechnologies also has a competitive advantage in the market with its product called CanChew, which is chewing gum with CBD ingredients.
How To Invest In CBD Inside Your IRA
Want to learn how to invest in CBD inside your IRA? Get our free guide here!
Investing in the CBD market has created opportunities for many aggressive investors. There are several ways to get into a CBD investment.
You can start by investing in retail CBD oil companies. As of today, there are only a few retailers and it certainly creates a good opportunity for you to enter the market through them.
Another option is by directly investing through CBD stocks. There are now many stock companies which cater to the demand for the CBD market growth and just like investing in usual stocks, investors find it very easy to open CBD investments.
Canopy Growth (CGC) and Aurora Cannabis (ACB) are just some of the top CBD companies you can consider, according to Profit Confidential. While it is not yet safe to say that investing through these companies will give you better investment opportunities, it is worth learning how much they can help you grow your investments.
These are some ways for you to enter the CBD market easily. However, you may want to do your own extensive research first before making any decisions.
Performance of CBD Investments Through the Years
The cannabis industry continues to see increased sales, and marijuana stocks have increased rapidly in recent years. With these competitive advantages, aggressive investors have begun to seek market capitalization through innovative companies.
Aside from the growth projections of the CBD industry, investors should also consider that more states are now legalizing the use of cannabis. Additionally, more international countries have opened their minds to the idea that CBD is in fact beneficial.
Based on the success of many big CBD companies, it denotes a good sign that investing in CBD stocks might be a good idea.
The CBD and cannabis industry has grown so much in potential over the years. Unlike real estate and other established investment options, there are greater complexities when it comes to investing in this industry. Only time can tell whether CBD investments have the ability to maintain this positive trend so, in the meantime, monitoring and studying the CBD market is the best thing investors can do.
Do you think CBD investments makes a great addition in your investment portfolio? Share your thoughts with us in the comments section below.