What does the rising popularity of CBD mean for the industry?
You may have noticed that over the past few years, CBD is a hot topic, with many consumers turning to CBD as an alternative way of managing health conditions such as anxiety and chronic pain.
It seems that there are new CBD companies starting every day, and what was once a niche product is now mainstream. But how will the rising popularity of CBD impact the industry?
A comparison of the various prices of CBD products in 2019 and 2020 conducted by Prohibition Partners shows that CBD oils and CBD vapes have both seen a decrease in pricing this year.
This is not because of decreasing sales, but rather due an increase in demand for these products, resulting in more affordable products being put on the market.
This doesn’t necessarily mean that you need to reduce your prices, however it does mean that you need to focus on your customers’ needs, build a strong brand and create innovative products to bring the value required for customer loyalty.
The increasing demand for CBD also means that more hemp is being grown and so the cost of buying CBD biomass, flower, oil and isolate has significantly decreased over the last year.
As the CBD industry continues to grow, governing bodies are developing regulations which suit the industry and ensure that the products sold are both safe, contain the ingredients promised and do not make claims which are misleading or unfounded.
Both the FDA and the European Commission have recently developed new regulations for CBD products, with the FDA to finalise their rules and the EC requiring CBD manufacturers to apply for Novel Food authorisation by March 31st, 2021 to keep their products on the market. After the UK leaves the European Union on 31st January 2021, they will have their own authorisation process for CBD products.
CBD is likely to continue to increase in popularity and demand, which means that the landscape of this industry will most likely change significantly over the next few years.If you are a CBD manufacturer, our regulatory and laboratory services can help you to ensure that your products are safe and comply with regulations. Contact us or email firstname.lastname@example.org for a quote.
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