'Money talks'
Euromonitor analyst Zora Milenkovic explained the sudden interest in this emerging sector.
Much of the conversation around CBD centers on the consumer trends underpinning it, such as mindful consumption, health and wellness and the decline of tobacco and alcohol.
While these trends are a driving factor, including in Latin America, there is also a much more prosaic fact. "Money talks," she said.
Determining the value of the global CBD market and its projected growth is difficult because estimates depend on predicting which countries will legalize production.
However, according to Transparency Market Research, the global CBD hemp oil market will grow from US$950 million in 2017 to US$2.5 billion by 2026.
For governments around the world, cannabis and its derivatives are taxable products that can create jobs and make up for the decline in tobacco tax revenue.
“It’s a very nascent industry and everyone wants to be first out of gate, not just to cultivate but also to refine, process and create added-value products using the CBD and THC extracts.
"[The extracts] are higher value and have higher margins than the flower and ‘smokable’ stuff. This is a whole new value chain that can be monetized, and governments don’t want to miss out.”
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