Europe’s cannabidiol (CBD) and cannabis markets are set to grow exponentially in the next few years. A new report by Brightfield Group – a market research firm that provides benchmark data for the legal cannabis and CBD industries – expects the cannabis industry to rise by 2,400 percent, while the CBD sector is set to increase by 400 percent by the year 2023.
In 2018, the total estimates of the CBD market were at $318 million. Researchers are expecting it to rise to $216 million by the end of 2019, according to the European CBD and Cannabis Market 2019 Report. The market is projected to grow to $1.7 billion by the year 2023, but why?
The market is likely to grow faster due to blessings from international bodies, like the United Nations, and the European Union’s recent act – The Novel Food Act – that permits the sale of CBD products as ingestible products.
These two reasons are likely to cause a consistent rise in demand for CBD products, like Zuya. For instance, the World Health Organization and the United Nations have held an anti-cannabis stance for decades. But now, these two organizations are warming up to the idea of legal CBD markets that operate outside the drug control conventions. Further, the discussions between EU member states have been friendly towards the idea of CBD legalization and how to use cannabis products.
Another main reason that will boost the market for Zuya or other CBD products in Europe is their immense purchasing power. Statistics show that European countries have a total of 27 trillion dollars combined GDP as their spending power. Plus, many consumers in the area are looking for alternatives to pharmaceuticals and tobacco. With this, such customers are likely to find the use of CBD and their products as appealing.
These two main reasons have also created a considerable chunk of interests from investors across the globe. Many companies are looking forward to raising adequate capital. However, as of now, the market remains uninvestable, especially by managers of institutional equity funds. For instance, the biggest listed cannabis company stands at around $33.6 million. That’s way below the largest CBD companies in Canada, that stand at $16 billion and $7 billion.
However, the slow pace of growth in CBD products across Europe may be a good thing. That’s because the market will be able to avoid the market frenzy that hit other popular CBD markets in North America. Still, despite the current growth situation in the industry, companies across Europe are positioning themselves to take advantage of the cannabis market in the country.
Currently, a wave is blowing across Europe and the entire world when it comes to cannabis regulation. Once these regulations are established, the CBD market will grow to become stable and scalable, rather than the current patchwork. For instance, Germany is the largest market for medical cannabis products, which is estimated to grow from $73 million last year to $2.7 billion in 2023. France and the United Kingdom are also exhibiting higher growth potential.
Disclaimer: This article is intended for information and entertainment purposes only and is not intended to reflect the specific views of the publication.