By Alex Veiga, Associated Press
(AP) — From skin-care lotions to bottled water, cannabis companies are rolling out a growing array of consumer products infused with cannabidiol (CBD), a nonpsycoactive medicinal substance found in cannabis that promotes general health and well-being.
The U.S. retail market for CBD is projected to swell from an estimated $2 billion last year to $16 billion by 2025, according to a report by equity analysts at Cowen.
A key factor in that forecast is the growing variety of CBD products that companies are bringing to market, such as drinks, capsules, gummies, topical lotions and tinctures, which are liquid extracts.
The number of hemp oil products offered by Amazon has roughly quadrupled in the past six years. And many U.S. marijuana dispensaries are now offering more CBD-infused products.
Nutraceuticals — foods that include additives with a purported health benefit — along with topical lotions and beverages will drive much of the CBD growth, Cowen says.
Tinctures are currently the most popular CBD product, making up around 43 percent of the market, according to a Cowen consumer survey in January. Beverages account for about 20 percent.
CBD products are sold online and in specialty shops across the U.S., though cannabis companies must navigate various state and federal limitations.
Proponents say CBD can relieve pain and anxiety, along with other health benefits.
Cowen analyst Vivien Azer estimates that CBD use could grow to 10 percent of U.S. adults, or about 25 million consumers, by 2025.