The U.S. cannabis market could more than quadruple by 2025, according a new report from The Nielsen Company titled “Brace for Impact: U.S. CPG Cannabis sales to Rise by the Billions.” According to the report, the market could grow from $8 billion in 2018 to over $40 billion by 2025.
The cannabis genus includes both marijuana and hemp, and all of the products that stem from the two, including cannabidiol (CBD) and hemp seeds. Marijuana will take the lion’s share of the market—$35 billion—but the hemp-derived CBD market is predicted to hit $6 billion.
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Given the varying legal constraints across the country, it’s a difficult market to enter, but Nielsen suggests that, as legal restrictions are loosened, the process of bringing a hemp CBD product to market could mirror that of other products. Nielsen implores its readers to “think broadly when it comes to cannabis… From over-the-counter medications, to cosmetics, pet care and even products throughout the traditional food and beverage space, the future potential of hemp-based CBD could impact billions in CPG sales across categories.”