Investors around the globe are pouring money into the CBD market. And with analysts predicting the market could quadruple in size over the next four years it is not surprising that some otherwise more tech-focused European investors are looking at the CBD market for similar “hockey-stick growth” opportunities.
The current market size of CBD in Europe is estimated to be around €450m (£390m) and accounts for around 31 per cent of the global market. However, analysts at the Brightfield Group predict it will grow by more than 400 per cent over the next four years.
What is CBD?
Cannabidiol (CBD) is an active ingredient found in cannabis (marijuana), but does not cause a “high” like THC and as such exhibits no effects indicative of any abuse or dependence potential according to the World Health Organisation (WHO). It is derived directly from the hemp plant, and is most commonly used in the form of CBD oil, which is sold in small tincture bottles, but is also increasingly found in a variety of other products, which is what has investors excited. Click here for more information.
Why do people use CBD?
Clinically, the strongest scientific evidence for using CBD as a treatment is to treat childhood epilepsy syndromes, such as Dravet syndrome and Lennox-Gastaut syndrome (LGS), where other anti-seizure medications have little or no impact. In a number of well-researched studies, CBD treatment reduced the number of seizures or stopped them completely. The evidence is strong to support CBD as a treatment for these conditions, but they are thankfully rare and so investors are more focused in other uses.
CBD is also increasingly commonly used to treat anxiety, insomnia, and chronic pain and arthritis – conditions which affect hundreds of millions of people around the world. Anecdotal and numerous small studies have shown the effectiveness of CBD in treating these conditions, but the scientific literature remains open to some interpretation. Nonetheless, the broad application of CBD in helping millions of people with a variety of ailments makes CBD a rousing prospect for investors searching for the next big growth opportunity.
Is CBD legal?
In many European countries, including the UK, CBD is allowed to be sold as a wellness product with high street pharmacies selling a variety of CBD-related products. Some European countries only permit CBD oil to be sold if it is refined to be completely free of THC, but others allow up to 0.3 per cent THC.
In the US, CBD is legal in a number of states but it is not legal across the country, with some states still legally defining hemp as marijuana and therefore as a controlled substance. CBD users should always check the legality of the substance in their destination before travelling.
How is CBD consumed?
CBD is most commonly consumed as CBD oil, which is sold in small 5-15ml tincture bottles, but is also increasingly sold as capsules for easier consumption orally and topical creams and gels, which can be applied directly to the skin to target painful areas locally.
Entrepreneurs are also now adding the substance to a variety of other products from beers to gummy bears to market the product to a wider audience, with manufacturers keen to explain to consumers the additional benefits of the substance. Some people even plant high CBD cannabis seeds, which can be found at resellers like Zamnesia, in order to obtain plants from which they can extract CBD and make their own CBD oils.