Cannabidiol (CBD) is now everywhere. It’s gaining more and more traction in the forms of beers, gummies, chocolates, lotions, oils, and more. This article will help you with the right CBD merchant account for your business. Also, it’ll tell you more about synthetic cannabinoids.
Modern CBD Market: CBD Merchant Account
The CBD market is growing fast. Let’s look at some figures:
- According to Brightfield Group, a research company, the hemp-related CBD products market was about $591 million last year, and is expected to reach $22 billion by 2022.
- According to Hemp Business Journal, the market accounted for nearly $190 million in 2017, and is anticipated to make up $646 million by 2022. It’s growing at a CAGR (compound annual growth rate) of more than 30%. The number isn’t projected to change by 2022.
- According to LP Information, the CBD market will grow at a CAGR of 30.7%, thus jumping to $760 million in revenue by 2023.
However, there’s still a lot of confusion about the federal legality of CBD-derived products in terms of commerce. Given all this, you, as a CBD merchant, can’t do without working with a reliable merchant services provider in your field.
A true payment processing company that specializes in the high risk space can get you the safest, most reliable and cheapest CBD merchant account in the marketplace.
What Synthetic Cannabinoids Is
You can find CBD products at supermarkets, health/wellness stores, smoke and coffee shops, and farmer’s markets these days. According to the Hemp Business Journal, a number of high-profile companies in Colorado have been offering products that contained synthetic CBD, with their customers having no idea of this.
Synthetic CBD is a CBD isolate produced in a labs. The substance is thought to have the same chemical features as natural CBD, however, it hasn’t been studied much. So now, artificial cannabinoids like synthetic CBD are entering the market and creating a new situation both for merchants and consumers.
You can come across several synthetic cannabinoids being legally sold on the market today. One of them is called “Marinol.” This is a synthetic form of THC (Tetrahydrocannabinol), one of at least 113 cannabinoids identified in cannabis.
Based on the estimates by the Hemp Business Journal, U.S. CBD pharmaceutical sales of Epidiolex will account for $310 million by 2022. However, more cannabinoid-derived drugs, including those derived from synthetic CBD, may appear on the market within 10 years.
What could you expect from synthetic CBD? Well, pharmaceutical companies may get focused on it as a cost-effective option. However, like any other new drug, one with CBD will have to pass the FDA’s strict approval process. This may not be applied to CBD oils and supplements, which aren’t, in fact, under strict regulation.
To sum up, the growing popularity of CBD is no more a surprise. However, the market has a “newcomer” and this is synthetic CBD. The latter is creating a new situation in the field, so if you’re interested in taking your CBD business to the next level, work only with a respectable processor in the industry.
Author Bio: Electronic payments expert Blair Thomas is the co-founder of high risk payment processing company eMerchantBroker that offers the most secure and cheapest CBD merchant account in the marketplace. He’s just as passionate about his business as he is with traveling and spending time with his dog Cooper.