Forbes has recently decided to jump on board the CBD hype train by republishing an article first authored by the Hemp Business Journal. In it, both the HBJ and Forbes make strong points for CBD sales to grow to $2.1 billion by 2020. 

In the original article from The Hemp Business Journal it was estimated that the CBD market will grow to $2.1 billion market in consumer sales by 2020. Perhaps even more interesting was the guess that roughly 25% of those CBD sales would be derived from industrial hemp. If the guess estimate is met, it would mean a 700% increase from 2016. The market in 2015 for consumer sales of hemp-derived CBD products was $90 million, plus another $112 million in marijuana-derived CBD products which were sold through dispensaries – bringing the 2015 total CBD market to $202 million.

Matt Karnes of Greenwave Advisors is more optimistic about the growth of the CBD market. “In terms of the CBD market size, I estimate an almost $3 billion market by 2021. Right now there are 15 states that allow CBD only -- this is in addition to the 28 states plus DC that have legalized medical marijuana” he said.

Another interesting point that may signify even higher CBD growth potential is the evidence that traditional marijuana users are willing to give CBD a try. Outco, the largest licensed cultivator in Southern California learned that 38% of users and non-users said they wanted to learn more about CBD oil. Outco also believes that CBD’s are poised for strong growth over the next few years.

Entrepreneurs and established industry leaders alike have not missed this potential either. According to Headset Research data, in Washington state alone there are over 800 CBD products in the marketplace.

But this high growth leads to problems as well. The high number of products makes it difficult for consumers to know what is what when they are trying to buy CBD products. CBD products additionally claim to make all kinds of improvements to various health ailments but they can't actually make those claims legally. Because of this, most labels on these products are intentionally vague making it difficult for consumers to know what they are buying.

The government's approach towards CBD doesn’t clear this up either. The Federal government is unclear as to oversight of these products. CBD isn't specifically defined under the Controlled Substances Act, however the Drug Enforcement Agency (DEA) believes it is a Schedule 1 controlled substance and took The Hemp Association to court over that designation, but they lost in 2003. The Industrial Hemp Farming Act of 2015 would amend the Controlled Substance Act or CSA to exclude hemp and thus hemp-based CBD. Still some hemp-based CBD products are sold in every state believing they aren't subject to the law.

It is critical for consumers to educate themselves.

Since CBD’s are not regulated in the same way as THC, CBD producers can import industrial CBD oil. Many order large vats of CBD oil that is produced from Chinese industrial hemp and cut that into their products. This makes it difficult for those who grow and extract CBD locally to compete and consumers aren't currently educated enough to have a preference for 'homegrown' CBD products.

It is up to consumers to do their homework and check with these CBD companies to learn what products they should buy and where the company gets its CBD extract. It is also a bit or a trial and error process. Users will only know if the product works for them by giving it a try.