HEMP/CBD OIL A lack of federal regulation governing cannabis, hemp and CBD oil in the USA is impeding growth of the industry but across the Atlantic, EU legislation due to come into effect in January 2023 is expected to smooth trade and ease operations Jens Kastner Demand for cannabidiol (CBD) oil has steadily been on the rise due to its growing usage in food, pharmaceuticals, supplements, nutraceuticals, lotions, shampoos, soaps, bath gels, massage oils and cosmetics. With the growing liberalisation of cannabis products containing CBD compounds (and, to a lesser extent, the psychoactive tetrahydrocannabinol [THC] compound), sales are growing in the major market of the USA. As of May 2022, 19 US states allow recreational cannabis use and 38 permit medical sales, with US legal cannabis sales growing by 40% year-on-year in 2021 to US$25bn, according to research from New York-based BofA Securities Inc. Of this total, approximately 50% of sales related to oils, says Oregon-based hemp consultancy Whitney Economics. Another statistical snapshot by UKbased market researcher Euromonitor International shows that North American (USA and Canada) retail sales of tinctures and sprays for prescription medical uses and non-prescription medical uses that are extracts of cannabinoids dissolved in oils (as well as alcohol, vinegar and/or glycerine) totalled €1.7bn in 2021. With cannabis completely legalised across Canada, boosting sales in North America, Euromonitor predicts CBD
Ambiguous laws impede growth solution sales of €1.9bn this year. While Europe has yet to follow the liberalised Canadian model on THC (although CBD oils are widely available), sales are forecast to grow to €1.8bn this year, against €1.2bn in 2021. “In Germany and Switzerland, tinctures and sprays as well as topicals are the most
Cannabis, hemp and CBD: the differences Cannabis is a family of plants with two primary classifications – Indica and Sativa. While marijuana can be considered a member of either classification, hemp is a member of the Sativa family. Cannabis contains a variety of different compounds called cannabinoids, the two most common ones being cannabidiol (CBD) and tetrahydrocannabinol (THC). THC induces psychoactive effects (a ‘high’) while CBD does not contain any psychoactive properties. Hemp contains a very low concentration of THC (0.3% or less) while marijuana has 15%-40% THC. As a result, hemp is mainly grown for industrial purposes while marijuana is grown for recreational and medicinal purposes. However, with the fast-growing popularity of CBD, hemp is also used to produce a wide variety of THC-free CBD products. 34 OFI – JULY/AUGUST 2022
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dynamic categories in CBD whereas the Swiss market has reached somewhat more maturity compared to the German market, where CBD products are still a relatively new lifestyle product,” Euromonitor told Oils & Fats International (OFI). In truth, legalisation for various kinds of cannabis products is a developing process.
Lack of federal regulation in USA
In the USA, hempseed oil has been legalised federally since 2018, when hemp made from the Cannabis sativa L variety, including products with CBD, was legalised under the 2018 Farm Bill, where it has no more than 0.3% THC content. However, the regulatory picture for other cannabis varieties is less clear because of the lack of federal regulation. Cannabis industry insiders told OFI that CBD oil market dynamics will be much stronger once regulatory ambiguity is removed, as large players are still shying
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25/07/2022 14:22:06
