Demand for cannabidiol products is getting higher and higher. Forecasts of the global market’s growth vary, but the numbers are invariably massive. In the summer, for instance, CBD market intelligence provider Brightfield Group predicted sales of $23.7bn (£18.4bn) by 2023 – with revenue across Europe rising by 400%.
That’s great news for a raft of suppliers in UK grocery – from big players like Vita Coco and Halewood Wines & Spirits to startups such as 7NRG sports nutrition and Blockhead chewing gum. A bonanza awaits! See you all in three years’ time.
Oh, hang on. There’s just one matter to consider first: the dizzying regulatory uncertainty both in the UK and US, birthplace of the CBD craze. As consumer interest and NPD grow, the guidelines and advice seem to get correspondingly more frustrating.
Stateside, ingestible cannabis is technically not allowed. But that doesn’t stop brands from launching CBD-related NPD. Which is presumably why the Food & Drug Administration last week announced it couldn’t guarantee CBD food products were safe. It raised serious concerns about the potential harm from cannabidiol, including drowsiness, diarrhoea and liver damage.
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“This will be devastating news for the burgeoning CBD food industry” says GlobalData’s Andy Coyne. “It is unlikely that we will see major players entering this space unless the scientific evidence changes. And those companies already offering CBD food products can expect increased scrutiny from the FDA and its equivalent in other markets.”
In the UK, that would be the FSA, which this weekend reiterated that CBD goods fall under the novel food regulation, meaning they require pre-market authorisation.
Meanwhile, however, the government seems to be turning a blind eye as major retailers make shelf space for cannabis innovations. That’s in spite of concerns some products might contain more than the legal minuscule amount of the psychoactive THC.
Even more confusingly, the government’s obliviousness hasn’t extended to the growing of hemp. In the summer, Oxfordshire hemp farming co-operative Hempen was forced to destroy its entire crop after its licence was revoked by the Home Office, leading to a £200k financial hit.
So, what to do? Should brands and retailers carry on regardless? Await the FSA’s next edict? Look to the US for guidance? Have a CBD snack bar and a lie down?
Perhaps they should attend the two-day CBD Global Summit in March. Hosted by The Grocer and its sister titles FoodNavigator, NutraIngredients and CosmeticsDesign, it will cover the regulatory environment in as much detail as possible.
Plus, expert speakers and panellists from food and drink, health & beauty, retail and science will also discuss trends, ranging, supply chain, and health and nutrition. There’ll be plenty to talk about – that is certain.
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