Economists have recently noticed that CBD products have been getting cheaper and it appears to them that this trend will continue. Factors that have affected the price of CBD products include the recent pandemic and a surge in CBD availability as supply has increased massively. As compared to last year, CBD sales are expected to be 14% higher, and a large contributing factor is that CBD users are buying more than they have before. However, this growth is a smaller percentage than it could be due to the price drop in the CBD market.
In 2018, the Farm Bill was passed which allowed CBD products to be sold more widely as they were no longer considered federally illegal substances. After this, CBD was sold more often in new locations such as stores and on the internet. This abundant supply led to a price war which drove down prices, and these lower prices were continued from the Covid-19 pandemic. Considering all of these changes overall, the hemp industry is expected to be a $16.8 billion industry by 2025, which is lower than previous expectations of $24 billion. However, considering all of the recent difficulties, the CBD industry has still seen significant growth which is expected to continue.
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