Ever since the legalization of cannabis for recreational use in Colorado back in 2014, many companies have maximized the potential market and transformed it into an industry worth billions of dollars.
With the news of recent legalization of hemp, the nationwide interest on CBD oil and other CBD products have skyrocketed and Colorado companies have a giant head start on the others.
What is CBD?
Cannabidiol or more popularly known as “CBD” is a compound that can be extracted from the cannabis plant and hemp. Its popularity as a substance stems from its ability to make users feel more relaxed and pleasant without the psychoactive properties or “high” usually associated with its sister compound, THC (Tetrahydrocannabinol).
As it doesn’t produce a high, many prefer CBD products such as CBD oil over other substances with similar effects. They can be used in a variety of situations like:
- Self-care routines
- Pain relief
- Treatment of anxiety and PTSD
Although the more popular source is the cannabis plant, it can also be extracted from hemp; which contains a significantly less amount of THC. Because of this, hemp and hemp-derived CBD products are considered to be legal in the majority of states.
CBD Industry in Colorado
As the interest in the benefits of CBD increases, many Colorado companies are trying to make the most of the market’s potential, with Mile High Labs being the leader in the industry.
Mile High Labs is a company that was founded in 2016 and made it to the top by creating a comprehensive CBD product line on a massive scale. Moreover, the Colorado-based company just recently raised a loan facility worth $65 million.
This is so it could secure what could be considered as one of the largest purchases of hemp in history. Jason Roth, the CEO of said company, said that this is so they can continue meeting the rising global demand for CBD products.
Future of the CBD Industry
The CEO of Mile High Labs has also stated that he could see CBD products as becoming one of life’s daily staples, comparable to that of coffee and health supplements; with the leading business analysts of the industry agreeing with him.
The Brightfield Group has predicted that the hemp-derived CBD market will reach a worth of $22 billion in 2022; greatly overtaking the rest of the cannabis product market.
However, the future of these predictions lies greatly on the continual legality of the substance. Although it is still considered legal in most states, restrictions on CBD products like CBD oil are starting to appear. This mostly due to lack of in-depth understanding of what the substance actually is.
Mile High Labs seeks to end the controversies and misunderstandings surrounding the substance through a combination of strict compliance with the law and education of the consumers.
The recent legalization of hemp has made it easy to find CBD products in many areas, especially Colorado. However, despite its legal status, many shop owners find it difficult to advertise them because of the confusion surrounding the substance.
Nevertheless, the rising popularity of CBD and its many benefits have many Colorado-based companies seeking to maximize its potential such as the industry’s frontrunner, Mile High Labs. They, along with some of the industry’s top business analysts, foresee CBD as the next daily staple in our lives.
With CBD’s many benefits, it’s not surprising that it’s set to become a billion-dollar industry.