New CBD Sales Projections
This past week, we learned that retail sales of CBD in the U.S. are expected to surpass $1 billion in 2019 – a 133% increase over 2018 sales – and may eclipse $10 billion by 2024, according to projections Hemp Industry Daily. The CBD industry has been faced with different projections of the sales value of CBD since the passing of the U.S. Farm Bill. With such a new market, it’s impossible to project exactly how big it will be, but the data team at Hemp Industry Daily is determined to find out. Kristen Nichols, editor of the 2nd Annual Hemp & CBD Industry Factbook said, “Imagine running a race with brand-new shoes and a burst of energy but no idea what the course looks like. That’s somewhat the position in which today’s hemp industry finds itself.”
Banking Continues to be an Issue
CBD Retailers across the nation are running into difficulties with the issue of banking, even though hemp-based CBD has been made federally legal. Last month, the SAFE Banking Act was passed in the U.S. House of Representatives, which will eventually allow banks to add state-legal cannabis firms from all over the country as customers without fear of federal reprisal. While this bill makes its way through Senate, retailers are still facing hardships (and stigma) when trying to find financial institutions to work with. To many retailers’ relief, they are finding some success with small institutions and credit unions.
Louisiana Comes in Hot
There’s something hot in the state of Louisiana, and it’s not the weather. This state has been one of the most eager states to get on the CBD bandwagon since the Farm Bill was passed. Governor John Bel Edwards had signed a bill in June allowing the sale of hemp-based CBD products in the state. Since then, Louisiana’s Office of Alcohol and Tobacco Control received more than 1,000 permit applications and permitted 1,102 businesses.
Law Enforcement Speaks Up
Law enforcement officers in Birmingham, Alabama spoke up this past week on the issue of CBD and the risk factors that could be present if a consumer doesn’t adequately understand what’s in their product. Captain Clay Hammac with the Shelby County Drug Enforcement Task Force said, “Whenever somebody is consuming CBD there will be traces of THC. Now the way that the law is written according to the farm bill is there can be presence of THC in these legal products as long as it does not rise more than 0.3% of the product dry weight.” Officers say they usually find higher traces of THC because the products are not regulated by the FDA. Essentially this is warning that consumers don’t always know the THC content in their CBD products. If THC shows up in their system in an incident where law enforcement is involved, there could be tougher consequences than anticipated.