The benefits of CBD oil have been studied in a lot of detail over the last few years. They suggest it can be used for a whole host of reasons, such as to help patients with arthritis, reduce anxiety and to reduce soreness after working out.
The 2018 Farm Bill saw the legalization of CBD at the federal level. This means that is shouldn’t come as a surprise to see it rise in popularity over the coming months and years.
So far, the FDA has only approved the medical use of CBD oil to treat a rare form of epilepsy. As CBD oil becomes more mainstream, the medicine industry is bound to feel the effects
But CBD oil will not just have an impact on the medicine industry alone. Due to the higher levels of interest in the product, many other industries are going to be affected.
Here are 10 industries that are going to be disrupted by CBD oil.
Let’s start with the obvious. As more states across the US legalize CBD oil, the bigger the disruption it will cause. However, there is a rising legal sector that is benefitting the most: cannabis lawyers.
In 2015, The National Cannabis Bar Association was formed. It is now in the middle of a reorganization to become the International Cannabis Bar Association.
Cannabis lawyers are faced with the job of interpreting the laws and providing legal advice on CBD oil and cannabis for businesses and regular consumers.
CBD oil is attracting a lot of attention in the beauty industry. While it can help relieve pain due to its anti-inflammatory properties, it also has antioxidants to help with clearing acne and breakouts.
Don’t be surprised to see it used by large manufacturers. While face creams are a natural fit for CBD, it could even spread into areas such as mascara and lip balm.
For example, Sephora, a large retail company, is selling a wide range of products that contain CBD. These items are sometimes referred to as ‘beauty and bong’. Lord Jones also makes CBD body lotion to help treat skin conditions such as eczema.
And it seems to already have some merit. Actress Melissa McCarthy claims that she used CBD oil over her feet before the Oscars, while other celebrities including Katy Perry are using Lord Jones’ CBD lotion before walking across the red carpet.
Legalization of CBD will see more and more products like these hit the shelves.
Large banks are not currently willing to part with their cash and provide loans or accounts to cannabis businesses. This is largely due to the fact that marijuana is still illegal at the Federal level.
As a result, smaller banks and credit unions are filling in to provide cannabis businesses with the money they need to grow.
Since 2014, over 400 credit unions and local banks have taken on clients in the cannabis industry. For example, Severn Bancorp provides this service in Maryland. In return for taking on these ‘risky’ clients, they charge large fees for opening and running accounts.
While large banks miss out on this revenue stream, these small firms and unions can also grow.
CBD provides a great opportunity for farmers to grow hem. Compared to cotton plants, it takes nowhere near as much land to grow. Hemp can be used for producing clothing, rope and other commercial purposes.
It’s also not that difficult to grow. It can thrive in a number of soil types and weather temperatures and even has benefits to the farmer themselves since it can remove pollutants from the soil.
With this in mind, the agriculture industry is going to be disrupted by CBD. In fact, according to Brightfield Group, the CBD market is expected to be worth around $22 billion by the year 2022.
Most retailers right now only deal in cash and brick-and-mortar stores so it’s only a matter of time before e-commerce becomes a major player in the CBD oil industry.
Companies are already preparing for it. For example, the European company MeadowLife allows consumers to access and purchase CBD oil online.
When e-commerce becomes the norm in the US, expect CBD retailers to scale faster and grow exponentially; more people can get access and have it shipped directly to their door.
6. Breweries And Alcohol
According to research conducted by IWSR, more people are consuming products that contain both alcohol and cannabis. With fewer people drinking alcohol than ever before, breweries, wineries and spirit companies are looking at cannabis-based drinks.
For example, in the UK, a company called Diageo, responsible for producing popular brands such as Smirnoff Vodka and Guinness, are in talks with Canadian cannabis companies to create a drink together.
AB InBev has already taken the leap, joining up with Tilray in a deal with $100 million.
So, next time you go looking for a drink, keep an eye out for a new cannabis-based product on the shelf.
7. Non-Alcoholic Beverages
Producers of alcoholic beverages also often offer non-alcoholic alternatives so consumers can enjoy their drink without coming into contact with the drug.
They will also do the same for their CBD oil-infused drinks along with other soft drink producers. This sector alone is expected to be worth $600 million by 2022.
It has been reported that Coca Cola is in talks to roll out a CBD-infused beverage so watch this space.
Pot brownies are nothing new. However, with legalization, CBD is going to disrupt the entire food industry. In fact, a survey taken by The National Restaurant Association and the American Culinary Federation showed that 75% of chefs chose CBD-infused food as one of the top trends for 2019.
Since Dixie Elixirs started producing truffles and other treats infused with marijuana, other companies are following suit, such as high-end chocolate company Defonce Chocolatier.
9. Sleeping Aids
It’s estimated that 25% of all adults in the US have difficulty falling or staying asleep. However, CBD oil may disrupt the sleeping aids market to help people drift off and stay asleep all night.
According to CB Insights’ Industry Analyst Consensus, this industry is worth nearly $63 billion and companies like Mellowment are taking advantage. They are combining CBD with melatonin and chamomile to produce a soothing drink that will give you a great night’s rest.
This is perhaps the industry that is most disrupted by CBD oil and the legalization of marijuana. Tobacco companies are already making the switch in preparation for Federal law.
For example, Alliance One International, one of the biggest tobacco companies in the US, bought a majority shareholding in two cannabis firms, namely Goldleaf Pharm and Island Garden.
There has also been a lot of investment in research. Casa Verde and Imperial Brands combined to invest $10 million in Oxford Cannabinoid Technologies, a British medical marijuana firm.