Despite suffering from a bout of growing pains, trends expect the cannabis industry to be one heck of a long-term growth story. After more than tripling revenue between 2014 and 2018, Wall Street expects that the pot industry will deliver total sales growth of between 400% and 1,800% by 2030. In nominal dollar terms, we’re talking about $50 billion to $200 billion in annual sales by 2030. CBD is expected to be a fast-growing market getting attention from investors. And the FDA is starting to make some leeway for the booming CBD industry.
This Quote From the Head of the FDA Should Calm Some Nerves
With the FDA taking an exceptionally cautious stance on CBD, cannabis stocks that aimed to incorporate cannabidiol products in the U.S. have taken it on the chin.
However, fresh commentary from the relatively new FDA Commissioner should go a long way to easing investor fears. While giving a speech Wednesday, Feb. 26, Commissioner Stephen Hahn said the following:
“People are using these products [CBD products]. We’re not going to be able to say you can’t use these products. It’s a fool’s game to try to even approach that.”
Stephen Hahn, FDA Commissioner
In other words, the FDA head announced that the agency has no intention of clamping down any further on CBD than it already has. That’s excellent news considering that topicals and oils have more or less remained off of the agency’s radar. Most of the products that have put on retail shelves are of the oil or topical variety, meaning it still has plenty of sales growth momentum, even without the immediate ability to put edibles on retail shelves.
In short, things aren’t as dire for the CBD industry as you might think, but don’t expect the FDA to issue concrete guidelines anytime soon.