This archive report was first published on 14 June 2020.
Revolutionizing the CBD Industry ¶
As the demand for CBD continues to rise, the industry is expected to reach over $20 billion by 2024, according to a new study published on May 20, 2019, in Forbes.
The growth of the CBD market has been exponential, with a 706% increase in the United States in 2019 alone. This trend is also true outside of North America, with many countries now legally allowing the use of CBD due to its non-psychoactive effects.
As the CBD industry grows, suppliers are looking for ways to compete in a saturated market, and technology is already reshaping the way the industry functions.
From transforming cultivation processes to improving extraction methods and enhancing market research, technology is playing a significant role in the growth and transformation of the CBD industry.
Transforming Cultivation Processes
Traditionally, cannabis plants are costly and challenging to cultivate, largely due to lighting needs. However, technology has answered with the development of LED bulbs, which provide a wider light spectrum without adding significant heat, making it easier to sustain optimal growing temperatures while saving energy.
Improving Extraction Processes
CBD products can be expensive due to the difficulty of cultivation and extraction processes. However, manufacturers are using CO2 extraction processes to form CBD via rosin presses, which are designed to heat and cool the compound quickly.
Catering to Consumer Desires
Technology is also being used to improve user experience by optimizing the design of CBD delivery. For example, CBD company CBDfx has developed technologically advanced CBD vape kits with ceramic glass and steel cartridges, and temperature settings optimized for the best experience.
Enhancing Market Research and Data Collection
Big data is playing a significant role in the CBD industry, with data collection being used to help CBD companies access valuable information on consumer demand and habits. This information is guiding advertising, sales, and branding decisions, and allowing growers to adapt their products to consistently produce those that sell best.
Artificial intelligence and big data are also being used to improve efficiency in the growing and manufacturing processes, reducing costs and increasing production.
Final Notes ¶
The CBD industry is bound to experience change as profits grow, and technology will likely play a large role in the upcoming shifts. While the above trends have transformed the industry already, we're excited to see how tech influences CBD in the future.
