Gaining Momentum: CBD Industry Attracts Large Investments from Both Private and Public Sectors
Introduction
The cannabidiol (CBD) industry is growing at a rapid pace, attracting large investments from both the private and public sectors. With the legalization of hemp cultivation in the United States in 2018, the CBD industry has exploded, with products ranging
from oils to edibles to topicals. This burgeoning market is expected to be worth $20 billion by 2024. As the market continues to expand, it is attracting significant investment from a variety of sources.
Private Sector Investments
The private sector has been quick to invest in the CBD industry. From venture capital firms to individual investors, many see the potential for huge returns in the industry. In 2019, there were several high-profile investments in CBD companies, including
a $300 million investment by tobacco giant Altria in Canadian cannabis company Cronos Group. This investment gave Altria a 45% stake in the company, which produces both THC and CBD products. Additionally, private equity firm TPG Growth invested $25
million in Colorado-based CBD company Weller, which produces CBD-infused snacks and drinks. These investments are just the tip of the iceberg, as many more are expected in the coming years.
Public Sector Investments
In addition to private sector investment, the CBD industry is also receiving attention from the public sector. The U.S. government has taken steps to support the industry, with the passage of the 2018 Farm Bill legalizing hemp cultivation. This has led
to increased investment in both hemp production as well as CBD product development. Additionally, many state governments are creating programs to support the industry, such as the Oregon Hemp Program, which provides research and education resources
to those interested in the hemp and CBD industries.
Conclusion
The CBD industry is rapidly gaining momentum, attracting significant investment from both the private and public sectors. As more and more consumers become interested in CBD products and the market continues to expand, we can expect to see even more
investment in the industry. Whether you are a small business owner or a large corporation, now is the time to get involved in this exciting new market.
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