The Agriculture Improvement Act of 2018 was signed into law on Dec. 20, 2018 Among other things, the new law changed certain federal authorities relating to the production and marketing of hemp, defined as cannabis (Cannabis sativa L.), and derivatives of cannabis with extremely low (less than 0.3% on a dry weight basis) concentrations of the psychoactive compound delta-9-tetrahydrocannabinol (THC). These changes, said FDA, include removing hemp from the Controlled Substances Act, which means that it will no longer be an illegal substance under federal law.
Within the hemp industry, CBD products held the largest market value in 2017, delivering $190 million in sales. And as CBD was also recently delisted from its status of a Schedule 1 drug by the US Food and Drug Administration (FDA), robust growth is predicted. By 2022, the segment is expected to drive in sales of $646 million and continue to dominate the overall US hemp industry.
"I have never seen anything like the explosion that we're seeing right now in CBD, even with the bizarre legal gray area where CBD now operates. A few years ago almost no one knew what hemp-derived CBD was," said Bethany Gomez, managing director at Brightfield Group. "All of a sudden, CBD is everywhere - it is both a trendy new ingredient in drinks, face creams and pet treats and an answer to the prayers of so many people suffering from medical conditions ranging from epilepsy to anxiety and chronic pain."