CBD is the other weed. You know; the one that doesn’t get you high. It is also part of an investment explosion as products made from it stream onto the market. These products range from premium oils to creams and facemasks that claim to defy aging or have anti-inflammatory capabilities.
The CBD industry is growing as fast as the marijuana industry. It is currently worth over 1 billion dollars, and the experts on Wall Street expect it to reach 16 billion dollars before the year 2025. Celebrities are jumping on the alternative bandwagon as a way to add to their already outstanding levels of market participation.
Martha Stewart recently announced her partnership with Canopy Growth to produce her line of CBD products. Snoop Dogg just released Leafs by Snoop, his brand of homegrown weed along with Mike Tyson, who just started his cannabis farm.
The interest in this growing market is leaving the regular consumers wondering if they should invest in the growing CBD industry as well. There are many questions to ask, and a lot of research to do before investing in a market where even practiced investors are still figuring it out.
Here are a few things to consider before investing in CBD:
How Legal is CBD?
While marijuana has become legal in states around the country, CBD is still in flux because of the confusion of classification. The 2018 Farm Bill legalized hemp through the definition of THC levels. Anything below 0.3% is THC free, placing many CBD products in this category.
The FDA is not penalizing companies working with CBD because of these levels though they still penalize companies for making false claims about the benefits of CBD. The FDA holds the power that will shape what CBD becomes.
CBD is growing rapidly, but most of the products are untested for actual reliability. Everywhere is selling the products from gas stations to some of the top retail stores in the market. Growth has been slow in some places because of regulatory issues and strict prohibitions against CBD around the United States.
While growth projections are still fluctuating, because of market and industry confusion, THC products are a safer investment, at least for the short term.