Hemp's FDA Declassification Opens Door to Massive CBD Market Growth

NEW YORK, January 31, 2019 /PRNewswire/ --

FinancialBuzz.com News Commentary 

Cannabis is a family of plants that splits into two categories, marijuana and hemp. However, marijuana contains the psychoactive components of the plant while hemp has more practical uses such as clothing. Due to the effects of marijuana, it is currently more regulated as opposed to hemp. Hemp, being the non-psychoactive derivative of cannabis currently enjoys significantly less Federal regulations around the country, and, due to the current status of hemp, the industry is positioned to see significant growth. According to data compiled by Hemp Business Journal, a division of New Frontier Data, the U.S. hemp industry registered sales of USD 820 Million in 2017 and is expected to reach USD 1.9 Billion by 2022. Additionally, the market is projected to grow at a CAGR of 14.4% during the forecast period. Pressure BioSciences, Inc. (OTC: PBIO), GW Pharmaceuticals plc (NASDAQ: GWPH), Cronos Group Inc. (NASDAQ: CRON), Organigram Holdings Inc. (OTC: OGRMF), Emerald Health Therapeutics, Inc. (OTC: EMHTF)

Within the hemp industry, CBD products held the largest market value in 2017, delivering USD 190 Million in sales. CBD was also recently delisted from its status of a Schedule 1 drug by the U.S. Food and Drug Administration, prompting a robust growth. By 2022, the segment is expected to drive in sales of USD 646 Million and continue to dominate the overall U.S. hemp industry. Hemp-derived products include tinctures, topicals and capsules, which are all being used for both medical and recreational applications due to their relaxing and therapeutic effects. "I have never seen anything like the explosion that we're seeing right now in CBD, even with the bizarre legal gray area where CBD now operates. A few years ago almost no one knew what hemp-derived CBD was," said Bethany Gomez, Managing Director at Brightfield Group. "All of a sudden, CBD is everywhere - it is both a trendy new ingredient in drinks, face creams and pet treats and an answer to the prayers of so many people suffering from medical conditions ranging from epilepsy to anxiety and chronic pain."