The Future Of The CBD Industry: Five Emerging Trends
Thanks to the Agriculture Improvement Act of 2018, businesses could start farming hemp and producing CBD products. It coincided with greater societal acceptance of the use of CBD and marijuana to treat physical and mental health problems. These changes have replaced the previously illegal market for CBD with a legitimate one and have led to more people using the substance to treat their ailments.
The future of CBD and the cannabinoid industry seems promising, and entrepreneurs looking to enter this market should remain well-versed with these five emerging trends that will define the scale and scope of this industry.
Consumer Demand For Diverse Product Line
Businesses being allowed to farm hemp on a federal level has changed how people consume CBD to treat themselves. Instead of going to trusted distributors, users would have to rely on drug dealers for their supply, such that CBD was only accessible through marijuana consumption.
The ability to farm hemp means that consumers can now access CBD that is either entirely free of THC or contains negligible amounts. Legalization has also led companies to invest in RnD to create concentrates of cannabinoids such as CBD, CBC, CBN, and CBG. Businesses looking to enter this market must provide a diverse catalog of products with different chemical compositions and concentrations.
Further, the increasing acceptance of marijuana consumption in mainstream culture has created a demand for a wider variety of cannabis products. Websites like Youtube are full of videos with titles like ‘Edible-making tips for beginners’ or ‘How to Dab CBD’, which have caused an increased demand for different cannabinoid products like CBD-infused butter and wax.
Legalization Has Increased Demands For Transparency
For people self-medicating for their conditions when CBD was still illegal, there was little to no information about the drug they were buying. The dealer could tell them about the strain and its concentrations of cannabinoids, which was uncommon, but there was no way of verifying this information.
With its legalization and growing retail presence, there has been a corresponding increase in demand for transparency on the part of the consumer. Companies must provide users with exact information about the concentration of CBD and any additional ingredients in the product.
For entrepreneurs looking to invest in the CBD industry, ensure that all products pass through a robust testing regimen. It includes hemp plant testing to ensure that the raw materials are below the legal limit of THC and do not contain harmful substances like pesticides and heavy metals. Following this, an extraction test is required to confirm the substance’s potency.
Alongside testing, ensure the product’s labeling meets legal standards and provides consumers with comprehensive information about the product, its potency, and the recommended dosage.
There Is A Need For More Legal Clarity
While the Farm Act has relaxed restrictions on CBD farming and production on a federal level, the classification of marijuana as a Schedule 1 drug continues to create an environment of confusion where a lack of coherence between state and federal laws continues to disrupt business. Business activities that are perfectly legal in one state are criminal in another based on the differing perspectives of the state legislatures. It has created a situation where companies can experience difficulties expanding into new territories out of fear of engaging in illegal business practices.
Moreover, while the sale of CBD products has been made legal on a federal level, a lack of clarity over the precise boundaries of the law has resulted in the FDA being slow in approving CBD products. So far, only Epidiolex, a purified form of CBD used to treat certain seizures, has been approved. For this industry to truly grow across the country, businesses must lobby for new laws and regulations that clarify and expand the potential medical uses of CBD.
Expanding Medical Uses For CBD
Initially, the uses of CBD were limited to dealing with symptoms of conditions like epilepsy and seizures. Growing societal acceptance and relaxation of legal restrictions have led to research that has expanded our knowledge to show much more diverse potential uses.
Research has identified the use of CBD for its stress-relieving properties means it is experiencing growing use in the general health and wellness industry. CBD is often an alternative to conventional medication for treating anxiety and insomnia. It is also often used in wellness products like bath salts, candles, and essential oils for its aromatherapeutic properties.
CBD is even a popular ingredient within the skincare industry! Due to its potential anti-inflammatory properties, CBD is used to elevate products like moisturizers and face serums. It is said to help with oil regulation and reduce the excess production of sebum, which helps deal with issues of blocked pores and acne.
Businesses looking to invest in the production of CBD should also be business-facing and nurture relationships with companies in other industries like wellness and skincare.
Need For Greater Levels of Public Awareness
Marijuana and its cannabinoid properties like CBD have had a remarked transformation in their public perception. The drug was previously seen as threatening the country’s social fabric and inspired harsh laws to control the sale and use of the substance. Marijuana users were deviants who rejected conventional societal goals and aspirations and were more inclined toward criminality.
Since then, society has progressed to a point where marijuana has a similar social status to the consumption of other vices like tobacco or alcohol in many states. To further curtail its social taboo and deal with any misconceptions surrounding the substance, businesses must make a concerted effort to inform the public about the many uses of CBD.
There should be a public campaign that tries to debunk the many myths surrounding CBD consumption and a concerted effort to lobby toward greater recognition and approval of CBD usage in states with strict laws surrounding the consumption of marijuana and any of its cannabinoid properties. Public campaigns can result in the substance becoming more commonly used amongst demographics with the highest rates of disapproval, like the elderly, who coincidentally probably need it more than others.
The use of marijuana has become increasingly common, especially among young adults, where the number of daily users has reached the highest levels ever recorded, and almost half of the young adult population reported past-year use. It means that there is likely to be a stable and growing demand for cannabinoid products like CBD, which will continue to grow as its potential uses expand to different industries. Businesses looking to invest in CBD should be mindful of the trends in this article when creating their business vision and plan to give themselves the highest chances of achieving success.