Unless you’ve been living under a rock for the past decade, you’ve probably taken notice of the “green rush,” or in layman’s terms, the progress that the cannabis movement has made. Once considered a taboo topic that politicians cast aside, marijuana is now a mainstream issue, and one that more people than you might realize support.
According to Gallup’s national survey that gauges the public’s perception on marijuana, an all-time record 66% of adults favored legalization in October 2018. This is a big reason why 33 U.S. states have now waved the green flag on medical marijuana, 10 of which have also legalized recreational pot.
The “rise of the derivatives” puts CBD on a pedestal
But you’d be mistaken if you thought that the marijuana movement was all about dried cannabis flower. While that might have been the case for your parents or grandparents, it isn’t anymore. Nowadays, derivative products, such as oils, vapes, edibles, concentrates, topicals, sublingual sprays, and cannabis-infused beverages, are all the rage. And stuck firmly within this “rise of the derivatives” is the increasingly popular cannabinoid known as cannabidiol (CBD).
Although there have been at least 113 different cannabinoids isolated by researchers, pretty much all the buzz surrounding marijuana and hemp plants revolves are two cannabinoids: tetrahydrocannabinol (THC) and cannabidiol. THC is the psychoactive cannabinoid that gets a user high, whereas CBD is the nonpsychoactive cannabinoid best known for its perceived medical benefits. Since CBD won’t get the user high, it’s the perfect means to lure in new customers who might otherwise not try a cannabis or hemp-related product.
What’s more, products containing CBD could turn out to be the bread and “budder” of most cannabis companies’ portfolios. Dried cannabis traditionally is a low-margin product since it’s easily oversupplied and tends to be commoditized over time. Meanwhile, CBD has yet to be oversupplied, and it can be extracted in abundance from cheap-to-grow hemp plants. This makes CBD products a higher-priced, higher-margin opportunity for the marijuana industry.