The CBD (cannabidiol) market, as a whole, has been experiencing rapid growth. Looking at the beverage subsection of this market, this same growth is apparent and worth a further look.
In 2018, the CBD beverage market was valued at around $86 million. One year later, that value nearly tripled to reach $227 million. Although Covid-19 has had and will continue to have a harsh impact on many industries in 2020, CBD beverage sales numbers have seen a spike and are forecast to far surpass the numbers posted in 2019 by the end of the year.
That being said, there is an ever-present obstacle that is preventing this sector of the cannabis industry from exploding, and that is the Food and Drug Administration. The FDA is responsible for regulating all food products sold in the United States. However, the agency has not yet put out official regulations for the manufacture and sale of CBD beverages and has instead raised concerns over the lack of research on the safety of CBD in food products.
Because of this, numerous companies operating in the cannabis market have refrained from or delayed releasing CBD beverages. These businesses fear prosecution by the FDA, which has already warned a few companies operating in the food sphere.
Regardless of the lack of federal regulations, there are quite a few different types of drink products available for purchase, including teas, sodas, coffees, and enhanced waters. Those businesses putting these beverages out feel the risk of prosecution to be worth the reward of revenues. Underlying their efforts must be the belief that it’s only a matter of time before the FDA releases guidelines for the consumption of CBD in food and beverage products. Once this happens, the floodgates will open up, and the market will expand even faster than it already has.