Updated: Apr 18, 2021
It’s not every day that a product manages to grasp the attention of a global consumer market within such a short space of time.
However, cannabidiol – or “CBD” as most people call it – has contributed to a surge of enthusiasm in the medical market. Perhaps one of the most frequently discussed cannabinoids, CBD controls an industry of its own and is on-track to harvest a generous $16.32 billion in the United States by 2026.
Demand for effective CBD in the market is on the rise and there is no wonder why.
So far, scientists have successfully isolated 113 of the leafy green plant’s active chemical compounds. Formerly, the cannabis community firmly focused its attention on the plant’s psychoactive constituent THC (tetrahydrocannabinol) — but now, thanks to a swelling smorgasbord of scientific evidence pointing to the therapeutic potential of cannabis and hemp’s non-psychoactive chemical compound CBD, the market is constantly evolving.
CBD is enticing a diverse group of consumers from all ages — and even pets.
What is CBD?
A substance that does not induce feelings of psychoactivity, cannabidiol, or “CBD” as it is most commonly known, can be extracted from either the hemp or marijuana plants. The vast majority of products featured in CBD advertising strategies will be extracted from industrial hemp.
CBD falls into two main product segments:
food grade, and
Based on a report by MarketWatch, therapeutic grade CBD constitutes the vast majority of market share, with this segment accounting for 59.90% of the market in 2018.
A Running History of CBD’s Legal Status
As more people start to learn about CBD’s non-psychoactive properties and discover that it could actually present consumers of all ages with an opportunity to amplify their health/wellness routines, minus the high, the Internet is becoming suffused with cannabinoid-rich content.
In order to create the CBD market, taken into account were the following facts about CBD’s legal status:
1. Recently, legalization has swept across much of the U.S.
Up until a few years ago, marijuana and hemp were illegal across the entire United States on both the federal and state levels. However, public and political perception of marijuana is most certainly evolving. Thanks to a number of ballot and voter-approved initiatives, marijuana has been legalized in some form in a total of 33 U.S. states and the District of Columbia. However, it is still federally illegal.
While some states have legalized marijuana merely for medical purposes, others have gone as far as to legalize it on a recreational scale. Soaring demand for cannabis-containing products is putting pressure on businesses to properly navigate the complex patchwork of regulations associated with the nascent industry.
2. 2019: Farm Bill and FDA hearings.
In December of last year, President Donald Trump signed the Agriculture Improvement Act of 2018 (2018 Farm Bill, PL 115-334) (the “2018 Farm Bill”) into effect, which removed hemp from the Controlled Substances Act and maintains FDA’s authority to regulate certain hemp-containing products.
Despite the fact that commercial hemp cultivation was legalized throughout the U.S. following the passing of the 2018 Farm Bill, there has been much confusion regarding whether or not hemp-derived CBD products can legally be marketed and sold.
The FDA must treat hemp-derived CBD-containing products just like any other regulated product. However the agency has vowed to explore various regulatory pathways that will safeguard the health of patients and the general public.
3. Is CBD legal now?
Pay attention to reputable sources that publish the most recent updates regarding the legality of CBD in the U.S., such as this one. Obtain advice from an attorney. The cannabinoid’s legal status is dependent not only of federal law but also on the state in which you reside.
Attitudes about cannabis are changing on a global scale and looking at the market from the ground floor now with CBD, you can watch who will establish themselves now as well-respected brands before these emerging markets become overly saturated. Feed your industry knowledge by reading the news on a regular basis. This will enable you to observe and note changes in the industry at large.