All eyes are on the U.S. FDA with key hearings seeking information on cannabis with an aim of creating a regulatory framework for CBD.
“The public hearing will give stakeholders an opportunity to provide the FDA with additional input relevant to the agency’s regulatory strategy related to existing products, as well as the lawful pathways by which appropriate products containing cannabis or cannabis-derived compounds can be marketed, and how we can make these legal pathways more predictable and efficient,” said the FDA. “We hope to gain additional information and data for the FDA to consider with respect to products containing cannabis and cannabis-derived compounds, including CBD.”
The government agency will hear from companies hoping to launch edibles and beverages that contain CBD. “Our data shows that online interest in CBD has skyrocketed in the last 2 years, doubling year over year and continues to grow rapidly,” said Michael Klein, chief executive of cannabisMD.com, as quoted by MarketWatch.
Incredible Catalysts for CBD Companies
With growing, sizable interest, the FDA could give the green-light, and create a substantial catalyst for CBD company growth. We have to remember a few things at the moment. One, nearly 7% of Americans now use CBD, according to Cowen & Co. analysts. In fact, according to Cowen’s January 2019 consumer survey of 2,500 adults, 6.9% of respondents are using CBD.
By 2025, Cowen & Co. analysts believe CBD use will grow to 10% of Americans, which implies a potential $16 billion market opportunity. Along the way, retailers have been quick to wake up to that very opportunity. In addition, according to a Consumer Reports survey, an estimated 64 million Americans have tried some form of CBD in the last 24 months, with nearly one out of seven using the compound every day.
Better, according to The General Social Survey conducted by NORC at the University of Chicago, 61% of those surveyed support legalization. That’s up from 57% in 2016. A Gallup survey found that 66% of Americans are in favor of legalization. That’s up from just 60% in 2016. A Pew survey found that 62% of Americans want to see cannabis legalization in the country, as compared to just 57% in 2015.
With a good number of catalysts for CBD companies already in place, any positive word from the U.S. FDA could really ignite related stocks.