The global CBD business is booming; oils, pills, lotions, you name it, and while the efficacy of these products can be debated for years to come, we know it’s just the beginning. Cannabis and cannabis-derivatives are increasingly popular for medical and nutritional supplement use.
A recent report by Data Bridge Market Research forecasts the CBD oil market will experience unprecedented growth between 2020 and 2027; growing 31.90% due to the focus of unconventional applications of hemp extract and CBD oil for medical purposes.
While there may be no new or pending legislation on the table, with the infancy of the industry in Canada, not to mention growing international markets and new legalization in the US, it’s not unreasonable to expect a change in rules and regulations over the coming decade.
For us in Canada, it’s worth remembering that CBD, regardless of whether it’s extracted from cannabis or hemp plants is subject entirely to the cannabis regulatory regime, and not the more progressive and tolerant industrial hemp system. Despite its non-psychoactive properties, CBD is still treated as a controlled substance under the Cannabis Act and as such, only licensed retailers can sell CBD products, with strict limitations on marketing.
Meanwhile, elsewhere in the world, CBD is emerging in countless natural health products; rationalizing that CBD is not an intoxicant and tolerated (and enjoyed) by humans very well. Governments are taking note, with more pragmatic views of CBD and aware of its medicinal properties and its stability, the use is permitted in a variety of products. The Canadian government however, is looking to appear more reasonable, and is blocking access to these types of medicines, not to mention the economic benefits it would offer.
What Does the Future Look Like?
Thanks to Covid-19, the North American economy, like most around the world, has seen better days. If the demand is there for CBD products, the government under the new administration is likely to consider a cannabis reform and open up any industries that can offer our GDP a boost. Imagine the jobs and wealth that would create. In our recovery from the pandemic recession, all options will likely be on the table.
Back in 2019, consultations between the government and entrepreneurs were opened to understand and seek feedback on purchasing, manufacturing, or selling cannabis health products and how to establish a legal pathway to market for non-prescription based products. Most respondents want CBD health products, with a call for CBD to be treated differently than THC.
Loosening regulations on CBD can increase the boom and so the regulatory picture continues to evolve. Could we see CBD regulations begin to change in some markets within the next 12 to 18 months as we look to recover from the effects of the global pandemic?
What does that mean for growth in Canada and who will be overseeing these regulations?
At the end of 2018, the U.S. Congress passed the Farm Bill, opening the doors to growing a highly desirable cash crop: hemp. The bill removed hemp from the list of controlled substances and left it to states and territories to establish growing requirements or restrictions.
The Farm Bill caused a ripple effect across the United States. CBD oil is suddenly in high demand as companies look to add it to a number of products: food, beverages, beauty, skincare products, and more. For growers in North America, this means a greater demand for high-quality hemp plants.
We can’t predict the future, but for us, the key is to partner with regulatory systems that are building the future. Vitalis has complete control over the quality of its systems and ensures regulatory certifications are met and in some cases, exceeded. It's given our customers that confidence and assurance knowing no matter what might come in the future-their systems will check off all of the necessary boxes.
For more information on the CO2 extraction process or how we’re future-proofing our business contact us.
Vitalis helps prepare farmers and extractors in the hemp industry. Our state-of-the-art extraction equipment, services, and financing lead to better partnerships, higher quality products, and cutting-edge opportunities. Contact us.