Every industry has its tribulations and opportunities, but the CBD industry is in a unique – and critical -position. As a naturally occurring substance that was federally prohibited before the 2018 Farm Bill, hemp-derived cannabinoids with more than 0.3% THC still face a regulatory grey area. As a consequence, this uncertainty creates a host of new challenges in financing, marketing and producing products. But in the meantime, the industry and market are growing considerably fast. CBD businesses are tasked with seizing this opportunity while navigating the novel hurdles. And here’s what we found.
U.K.’s CBD Market in an All-Time High
According to the Association for the Cannabinoid Industry (ACI), Great Britain has “improbably” become the world’s second-largest CBD market after the U.S., consuming more cannabis extracts domestically than vitamin B and C in one place.
Recent findings suggest that more than eight million Britons are now purchasing CBD products, with spending surpassing £150m in the first four months of 2020 alone. In May this year, the Centre for Medicinal Cannabis estimated the U.K. cannabidiol industry would generate £690 ($951) in annual sales for 2021.
One of the key reasons cited for the swift change in the projection of the UK CBD activity was the pandemic, a view that many industry experts agree with. The cannabidiol market in the U.K. is reaching new heights, yet not the heights many commentators and analysts think. There are hundreds of CBD brands in the U.K., most of them hit less than £1m of sales per year and have little to differentiate themselves.
The pandemic, however, has driven this growth as consumers sought to experiment with CBD to relieve stress, treat pain and sleep better. CBD has skyrocketed in popularity due to its multi-use properties and benefits for health. Research on the CBD is growing, too and here’s what we found.
- CBD Offsets Anxiety and Depression
Its ability to calm is perhaps the most popular effect and the reason its use is so ubiquitous. A 2017 study found that CBD can significantly reduce public speaking anxiety. Meanwhile, at least one study in mice revealed cannabidiol had identical effects to the antidepressant imipramine hydrochloride. However, further human research is needed to confirm whether CBD can induce a similar antidepressant response in our bodies.
- CBD Helps Treat Opioid Addiction
Research on both preclinical animal and human clinical trials suggest cannabidiol could be used to help treat people who battle substance abuse. For instance, when people with heroin use disorder were administered CBD over the course of a week, they had reduced cue-induced cravings, resting heart rate, withdrawal anxiety and salivary cortisol levels. Even so, nobody experienced any side effects.
- Reduce Unmanageable Pain
Extensive studies on pain indicate that CBD is effective in treating chronic, non-cancer pain. In a 2020 study, the researchers administered cannabidiol to a group of people with symptomatic peripheral neuropathy (a result of spinal cord nerve and brain nerve damage), while the second group with a similar condition received a placebo. Results showed a considerable reduction in intense, sharp pains and itchy, cold sensations in those who were being administered topical CBD compared to the group who used the placebo. During and after the trial, no participants expressed adverse side effects.
What Trends Can We Expect to See in the CBD Market in the Near Future?
CBD continues to be an exciting growth market, though performance has fluctuated recently across the sectors. It’s expected that better regulations of cannabidiol products and regulations for advertising CBD products in the near future will bring more innovations and growth to the market. The improved quality and safety across the market offer greater confidence to consumers and brand leaders like CBD Planet to support the category and deliver the safety and purity of products. They’re expected to invest in building brand awareness and helping millions of new shoppers to discover their first CBD product.
Greater Accessibility & Ongoing Introduction of New Products
CBD-infused products sales add up to $1.9 billion in 2018, and it’s estimated to reach a whopping $20 billion by 2024 in the U.S. alone. That growth is now favoured by greater accessibility and a progressive introduction of new products.
The introduction of vending machines in the CBD market proves that nothing can stop the medicine from reaching people in need. Commonly referred to as a “dispensary in a box”, this technology automates the way consumers buy CBD products pretty much the same way banks implemented ATMs as a convenience system.
What’s more, the pandemic has triggered a greater need for social distancing and no contact sales, therefore it’s easier to imagine a world where such dispensaries will be on every street corner and products are widely enjoyed.
Education, Safety & Quality Assurance Will Skyrocket
A massive public education about cannabinoids will help convoy the mainstreaming of CBD. We’re expecting this trend to help consumers feel more confident and safer while purchasing cannabidiol products that are briskly regulated.
Many CBD brands that now mainly self-regulate will be required to augment their quality assurance and compliance efforts to remain on the floating line.
CBD’s Future Looks Promising But Still Hinges on Vital Developments
In some way, the CBD industry is on the horses. It already enjoys a multi-billion-dollar sector that will only grow higher, as millions of consumers have made their preferences clear. However, CBD giants still have to cross many unique challenges, from obtaining funds to using authorized payment processing to being able to market on current channels.
Some key developments that will give CBD the green light are the FDA or MHRA classifying CBD as a dietary supplement, the industry unhindered access to financial services and a smart regulatory system that increases product safety and quality across the board.
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