CBD has been gaining traction in the market for its potential health benefits, and the industry is growing rapidly. With the increasing demand for non-intoxicating cannabinoids, the market for hemp-derived CBD products has seen a surge in growth. This has led to an oversupply of CBD, hemp biomass, and hemp-derived CBD products. Market research firms have had to reduce their CBD sales growth projections due to this.
However, the increase in delta-8 (THC) and other intoxicating cannabinoids made from hemp-derived CBD suggests that consumers are willing to spend money on hemp products that produce a more noticeable effect. The financial statements and related documents of a company that markets delta-8 THC and other intoxicating cannabinoids manufactured from hemp-derived CBD have been located by Hemp Benchmarks. The sales data contained in the documents provides an illustration of how much and how fast the market for hemp-derived THC is expanding. It should be noted that it is not known how many companies currently produce and sell THC and other intoxicating products based on hemp-derived CBD, or if the recent financial results of LFTD and Savage are representative of other businesses in the sector.
The strong and rapidly rising revenues discussed above show how quickly the market for hemp-derived THC has expanded in just over a year. California may restrict the sale of products containing THC delta-8 to companies that hold state-issued marijuana licenses, a regulatory approach that several other states have already adopted. Consequently, companies are seeking to acquire a company that is in the process of obtaining a commercial cannabis license in California in order to continue their activities in the state in the event of a regulatory change. The rise of hemp-derived THC is likely to continue to depend largely on decisions made at the federal level.
Currently, it seems that most delta-8 THC and similar products are sold online directly to the consumer, as well as at small independent retailers, such as vaping stores. Whether THC delta-8 and similar cannabinoids are ultimately largely limited to legal adult consumption and legal medical cannabis systems by the state, it is a pending question at this time whether they can compete with established THC delta-9 products. CBD companies are tasked with seizing this opportunity while navigating significant obstacles. As founder and owner, this is my opinion on the crucial development issues in my industry, along with predictions about what will happen. CBD companies currently offer a fairly wide range of products.
However, this diversity will increase as more companies introduce products that hyperconcentrate on each of the more than 100 minor cannabinoids found in the hemp plant. Formulations focusing on cannabinol (CBN), cannabigerol (CBG) and other compounds and mixtures will be developed for specific use cases. Despite being legal at the federal level, CBD companies still have problems obtaining capital and standard services from banks and other financial services institutions. And the ability to market CBD as a safe and effective substance is limited by the FDA classification. In addition, more precise federal regulation of product quality will be a rising tide that will lift most boats, as bad players abandon fishing in order to survive the fittest. Once companies are able to market CBD as a dietary supplement, it will reach the mainstream of physical retail.
In particular, large chains will offer a range of topical and ingestible products in various product categories and applications. This new distribution could greatly expand the market and benefit several components of the supply chain, including hemp producers and laboratories that carry out extraction, distillation, crystallization and isolation of CBD from plants. A particular benefit will be to encourage more quality laboratories to participate in the CBD game, as many centers are now hesitant to deviate from their core competencies. The low cost of producing THC from hemp-derived CBD compared to the traditional process of extracting delta-9 from cannabis plant material would presumably make the prices of cannabinoids derived from hemp competitive.
