Australian Businesses Look to Capitalize Off CBD Topicals Market
In 2016, the Australian Federal Government passed the Narcotic Drugs Amendment Bill, which legalised medical cannabis. With the passage of the bill, Australia hopes to become a dominant figure in the global medical cannabis market. One aspect of the medical cannabis market that has seen significant growth throughout the world is CBD topicals.
Global CBD Topicals Market
Countries such as the United States and Canada are investing heavily into the CBD market and expect significant returns. In countries such as the UK, demand for CBD products is significantly increasing.
CBD in the United States and Canada
The United States is expected to see a 107% sales growth in CBD annually, with expected sales revenue of 23.3 billion by 2023. Due to such a high demand for CBD topicals, Canada is trying to maximise off the United States’s CBD market. Canadian hemp producers supply hemp directly to American CBD topical, essential oil, and skincare companies. Some successful hemp-producing businesses utilise vertical farming technologies. This maximises output and efficiency. The increase in demand in the United States is due to large pharmaceutical retailers such as CVS, Walgreens, and Rite Aid. CBD products will create new foot traffic and bring in more repeated business for these retailers. If the projections are correct, Canadian hemp producers and American pharmaceutical retailers can expect great returns from CBD for the foreseeable future.
CBD in the United Kingdom
In the UK, the CBD market is expected to be worth approximately 2 billion dollars by 2025. Despite the demand, it is difficult for UK producers to get the licensing to produce the hemp for CBD products. Since the UK lacks a strong production sector, much of the UK’s hemp comes from the EU. Due to Brexit, the hemp market may become more volatile for the UK in the coming years. This is especially true with political pressure for a “harder” Brexit. A “harder” Brexit alludes to more trade restrictions and barriers between the UK and EU.
The EU also labelled all cannabinoid products as “novel”. This indicates the need for proper regulations to ensure the safe distribution of CBD topicals and other cannabinoid products. However, the EU is leaving it to national governments to decide if they want to legalize the medical cannabis industry. A referendum on the issue takes years to develop.
CBD in Australia
The Australian cannabis industry is currently worth 52 million dollars. Additionally, projections indicate that the Australian cannabis industry is expected to be worth 1.2 billion dollars by 2027. This would make Australia the fifth largest medical cannabis market in the world. Likewise, jobs related to the medical cannabis industry will surpass 50,000 by 2028. The Australian Federal Government has made it apparent that Australia will be one of the leaders in the global cannabis industry. Without as many trade restrictions as the EU, Australia could be the leading supplier for CBD and other medical cannabis products to the Oceania region. If you would like to learn more about the benefits of CBD topicals, essential oils, or any other of our products, feel free to contact us and we will gladly tell you more about all the wonderful benefits of CBD!