CBD News: Where CBD Is Heading in 2022
Eastern Eye Staff
The latest CBD news suggests that 2022 is going to be a year of transition for the CBD industry. Since CBD became legalized thanks to the 2018 Farm bill, the CBD industry took off.
CBD producers and retailers popped up left and right. Large corporations and celebrities saw the potential of starting a CBD business and jumped in.
If you have a CBD business or are thinking of starting one, you need to anticipate what’s going to happen so you can adjust your own business.
What does the future hold for the CBD industry? Keep reading to learn the top CBD trends and predictions for 2022.
- CBD Sales Continue to Climb
The CBD market is going to grow by 15% in 2021, reaching $5.3 billion in sales. The industry is expected to triple in the next five years.
Demand will continue to grow as we learn more about CBD. Studies on the health benefits will shed light on the product as a great alternative to pharmaceuticals.
- Acquisitions Take Center Stage
The craft brewing industry was around for 30 years before it reached critical mass. By the time 2010 rolled around, big beer conglomerates were losing market share to the smaller breweries.
They had a choice. They could develop their own craft beer brands or buy existing companies. They chose the latter.
Goose Island, Elysian, 10 Barrel, Widmer, and many more craft beer companies got bought out over the years.
What does that have to do with the CBD industry? You can expect to see a similar pattern of acquisitions, except it won’t take 30 years for the CBD market to mature and reach critical mass.
You’re seeing that growth immediately, and you can fully expect to see plenty of mergers and acquisitions in 2022.
- More Cannabinoids Take Center Stage
CBD and THC are by far the most well-known cannabinoids. Some studies suggest that there are over 100 cannabinoids.
Many of them are minor cannabinoids. What are minor cannabinoids? They’re cannabinoids that are produced in the early stages of a plant’s growth.
These minor cannabinoids form the basis of all other cannabinoids, including THC and CBD. Scientists have only just started to study minor cannabinoids in the last couple of years.
CBG, CBN, CBDa, and CBC are some of the minor cannabinoids being studied by themselves and alongside CBD and THC.
Expect to see more products in the marketplace that include minor cannabinoids and CBD.
- Online Sales Increase
You’d think that online sales peaked in 2020 during the pandemic. It only accelerated the level of growth expected. Ecommerce is expected to hit $1 trillion in sales in 2022.
That trend of increasing online sales also applies to the CBD industry. Online sales of CBD will continue to increase in 2022.
- Going Beyond Gummies
Gummies are the popular way to consume CBD. You also see CBD-infused chocolate and a few other edibles.
CBD beverages are gaining in popularity and that will continue in 2022. What will really make a difference is when major retailers get on board and sell them.
Preparing Your Business for 2022
Now that you know the latest CBD news and trends heading into 2022, how can you prepare your business to be successful in the coming year?
Start by taking an assessment of your current situation. Look at where your business stands now. Analyze the main key performance indicators of your business.
These include total revenue, total units sold, average order value, and profit margin. Your financial reports should include profit and loss statements, cash flow statements, and balance sheets.
Find out where your sales came from. Where they referrals, from social media, or another source?
These metrics tell you the overall health of your business. They also give you a baseline to work from as you enter 2022.
Did you already set annual goals? If you did, this is a great time to revisit them and compare them to your baseline measurements. Make sure that they’re attainable compared to where you are now.
If you didn’t set goals for the coming year, this is a great time to get started.
Take Advantage of CBD Trends
Your business is primed to take advantage of these trends. Start with your website and make sure that you offer online ordering. That enables you to expand your audience and increase sales.
Review your product offerings. See if there’s a way to include products with minor cannabinoids and offer different types of consumable products.
What’s Your Exit Strategy?
Do you have an exit strategy for your business? Many CBD startups don’t think about how they’ll get out of the business.
You could decide to sell the company or go public. This is something to consider as you grow your business.
One of the things that people loved about some of the smaller product companies is their independence. They appreciated the little guy companies and would go out of their way to support them.
Keep that in mind if you get an offer from a large conglomerate. Get ready to hear things like you’re a sellout or greedy because you decided to sell your CBD business to a larger company.
What the Latest CBD News Means for Your Business
You don’t have a crystal ball, so you really don’t know what 2022 holds for you or your CBD business. What these CBD news stories and trends show us is where the industry is likely going.
Knowing these trends helps you pivot your business so you can take advantage of them. Position your business and products to capitalize on the growth of the industry.
If you enjoyed learning about the latest CBD trends, check out the home page of this site for the latest news.