A Look at the US CBD Market’s Growing Pains

The American CBD industry is one of the world’s fastest-growing markets. In 2021, sales of cannabidiol products generated approximately 5.3 billion U.S. dollars and are projected to reach nearly 16 billion U.S. dollars by 2026, making it an incredibly lucrative market for businesses looking to capitalize on its growth potential. However, as the industry matures, it is facing a number of challenges that must be addressed in order for businesses to make the most of their investments. Here, we explore what some of these challenges are and how Xyfil could help address them.

The legalisation of CBD in the US

One of the major issues facing the American CBD industry is legalisation. While hemp-derived products containing CBD with a THC content of less than 0.3% were made federally legal under the 2018 Farm Bill, there is still some ambiguity surrounding its legality from state to state. For example, while hemp-derived CBD is completely legal in most states, certain states have implemented tighter restrictions on its sale and use. This has created a patchwork of laws that can be difficult to navigate for businesses looking to enter the market.

How the CBD industry has grown

Since 2021, the American CBD industry has seen incredible growth. This is largely due to the introduction of new products such as vape pens and topicals, as well as a greater awareness of its potential benefits among consumers. In addition, wellness groups have become more vocal in their support of CBD and its potential benefits for individuals. This has led to an increase in the number of people using CBD for both medical and recreational purposes.

In addition, wellness groups have begun to embrace the use of CBD and many famous people have created their own brands or openly endorsed its use. Thanks to the pandemic, many now health-conscious people flocked to supplements for better health, both physically and mentally despite there being limited research on CBD’s effects. And this continues to grow each year with the market predicted to grow to 16 billion US dollars by 2026.

Current issues in the US market

Despite the impressive growth of the American CBD industry, there are still several challenges that must be addressed in order for businesses to capitalize on its potential. One such issue is inflation, which has had a knock-on effect on consumer spending habits. With the cost of living increasing and disposable incomes shrinking, many people are opting for cheaper products and foregoing quality CBD products. It also reflects on shoppers’ preferences for CBD products. Recent studies noted that sales in traditional CBD products like Oral Drops had declined with inflation. However, sales of CBD beverages had grown in comparison to every other CBD category.

In addition, sourcing issues have begun to show with farmers unwilling to grow their crops without a buyer, and buyers won’t buy due to limited products available. This has led to an influx of low-quality products entering the market, which can undermine consumer confidence and damage the reputation of the industry.

Finally, regulations are needed to protect consumers from low-quality and potentially unsafe products. While the 2018 Farm Bill legalized hemp-derived CBD, there is still a lack of clarity surrounding certain products and no regulation of the market to ensure good quality, safe products are being sold to consumers. Currently, in the US there are limited regulations surrounding CBD products that help ensure the quality and safety of CBD products, but talks are underway.

How Xyfil can help you join the US CBD market

Xyfil is here to help businesses take their brands to the booming US CBD market. Through years of experience in manufacturing and developing CBD products, Xyfil makes it easy for businesses to source high-quality hemp CBD from reliable suppliers, ensuring they get the best ingredients for their products. In addition, here at Xyfil we do all the heavy loading with compliance to ensure that your products are equipped for the state’s regulations you wish to sell in. Whether you’re looking to create a quality CBD Drops range, premium CBD topicals or the best CBD Vapes on the market, we have you covered.