What factors to consider before selling CBD products in the UK
The CBD market is one of the fastest-growing markets in the UK right now. It’s estimated that around 4-6 million adults have tried a CBD product, and this number is set to continue climbing.
To give an idea of how quickly the CBD market is expected to grow; Market research commissioned by the Centre for Medicinal Cannabis (CMC) estimates the CBD market to currently be worth more than £300 million a year, and they estimate that by 2025 it will be worth around £1 billion.
This means there are plenty of opportunities for entrepreneurs and businesses to enter the CBD market with their own products.
The issue is that it’s more complicated to enter the CBD market than typical product categories. There’s a lot to learn from a regulatory standpoint, and even when a product is passed to enter the market, building trust in the busy and fast-growing landscape is essential.
Here are some of the main factors businesses need to consider before selling CBD products in the UK:
There are various regulations governing the sale of CBD products in the UK. The main ones being the type of product, how it’s going to be used, and its THC content. There are also some other factors and legal terms and conditions that need to be carefully followed.
It’s not possible to list all of the regulations here as it depends on the exact product. The best advice is to first establish a product, then consult with a legal professional regarding the regulations, directives, and reports that will be needed
For example, the current UK laws state that the amount of THC in a CBD product cannot exceed 0.2%. In addition to this, the total amount of the substance cannot exceed 1mg per container.
This is not the case in some other countries. Businesses working with overseas manufacturers need to clearly communicate what the laws are here in the UK as they may differ from what they are used to.
CBD is legal in the UK, but a lot of the claims companies would like to make are not allowed. For example, at the time of publishing this, CBD oil has not been approved as a medicine.
Therefore, manufacturers and distributors cannot make any claims about health or medicinal benefits.
The Medicines and Healthcare products Regulatory Agency outline this in more detail. Discussing some of the wellness applications are allowed, but strictly not any medical effectiveness.
Navigating A Crowded Market
As already explained, there are lots of opportunities in the rapidly growing UK CBD market right now. This means there are a lot of individuals/companies thinking about entering the market with a new product.
To date, we know that companies that have been more dynamic with their marketing and unique with their products have performed better.
Building a brand and adding to a product line over time is a much better and more sustainable business model than looking for that one successful product.
The UK CBD industry is rapidly changing, companies able to change with it have a better chance of survival.
Set up Infrastructure in Advance
There is still a stigma and a certain degree of misunderstanding in regard to CBD products from agencies and businesses that do not understand the CBD industry.
Even some of the simpler steps involved in setting up a business, such as opening a bank account, working with marketing agencies, or hosting a website can generate more hurdles to jump over.
Form Strategic Partnerships If Applicable
Forming strategic partnerships is a core element to growing any new business. However, it’s even more beneficial to businesses bringing new products to the CBD market due to the amount of catch-up a new company has to do in such a fast-paced industry.
The various regulations, licensing requirements, legal terms and conditions can all feel overwhelming to a new business. At the very least, businesses should talk with a legal professional experienced in the CBD industry.
How we can help
We are specialists in the innovation of NRT smoking cessation technologies and CBD products.
We have a regulatory team that combines years of pharmaceutical experience and regulatory expertise. If you need help with any part of the process from creating to launching a CBD product, we can help.
For example, on 13th February of this year, the FSA set a new deadline of 31st March 2021 for the Novel Foods CBD Dossier, this means any CBD products being sold in the UK have to have a scientific dossier approved by the FSA. The deadline for sending a dossier to be cleared in time is December 2020 – which is fast approaching.
If you haven’t yet created your scientific dossier, contact a member of our team to find out how we can help.
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