38-39 - The purity approach

The global cannabidiol (CBD) market is growing exponentially. In 2018, the market was estimated to be worth $4.6 billion, but a recent report predicted that this figure could rocket to $123.2 billion by 2027.

Whilst attention typically centres on US and Canadian markets, over the last two years the UK CBD market has also experienced a period of exponential growth. In fact, a recent study commissioned by the Centre for Medicinal Cannabis found that the UK CBD market is currently worth over £300 million, and, given its annual double-digit growth, is expected to reach £1 billion by 2025.

Over 8 million Brits are now buying into the CBD market and, as a result, the UK market for CBD products is already greater than the Vitamin D and the Vitamin C market combined. More are expected to turn to CBD as a natural alternative for relieving anxiety and stress, getting better sleep and improving overall well-being, especially as COVID-19 has exacerbated these issues as people struggle with lockdown restrictions, job losses and a general sense of uncertainty.
With such a sustained period of market growth, the rise of CBD is clearly not a passing fad. It remains one of the few resilient industries that has maintained an upward trajectory amidst the recent period of economic turmoil triggered by the pandemic.

However, despite the CBD market going mainstream, the UK’s CBD market has been characterised by lax regulation and poor testing standards which means that some CBD products in the UK differ in quality and potency. This has left the market muddled and the regulatory framework confusing, ambiguous and constantly changing. Whilst the UK is by no means the only country with undeniably lax market regulations, now consumers and industry professionals alike are calling for a more stringent approach.

There are some rules under UK law: any claims around medical benefits are a strict no-go and CBD products such as CBD oils, tinctures and teas are sold as food supplements. The Food Standards Agency (FSA) accepts the EU’s classification of CBD as Novel Foods and pushed legislation last year requiring companies to have fully validated novel food authorisation certificates for their products by March 31, 2021. It stated that any CBD product currently on the market may continue to be sold, but after the March deadline, they will be removed from the shelves if a ‘validated application’ for Novel Food authorisation has not been submitted for them. Recently, the FSA revised the restrictions and will allow any product which was on the market on February 13, 2020, and linked to a novel food application to remain on sale after the March 31 deadline.

This new regulation aims to improve public safety and create a responsible and thriving CBD industry in the UK.

While regulations can be fantastic guard rails for safety and quality assurance and command compliance and good manufacturing practice from industry players, it’s vital that this doesn’t become a global regulatory minefield.

Despite consumer demand for CBD products rising due to its reported therapeutic properties, there is still a lack of official industry standards and, as a relatively new retail category, it can be difficult for customers to know which products they should be choosing and the criteria to judge them against.

Over the past few years there has been an explosion of products on the shelves, from traditional CBD oils to capsules, topicals, edibles and beverages. Whilst catering for evolving market trends has been instrumental in the success of the UK’s CBD market, a lack of legal clarity and standard regulations means a disparity of quality across products.

There are concerns that product labelling can be inaccurate and misleading, resulting in products on the retail shelf that contain little to none of the extract itself, contrary to their market claims and associated price points. There is no apparent law that obligates UK manufacturers to label their products accurately or to verify their CBD content claims. There is also little governance on the testing of CBD products such as accepted testing methods.

While responsible CBD companies make it their business to seek robust CBD analysis from an accredited laboratory to thoroughly test products or go through the API accreditation route, consumers deserve products that are safe, reliable, and free of contamination so it’s vital that the industry eradicates these issues.

Over the past few years, the CBD market has seen an unprecedented boom. Increasingly individuals are turning to CBD-based products to help with their ailments and knowledge regarding the potential benefits of these products is ever growing. However, scientific evidence is now vital if this upward trajectory is to continue.

A strong and regulated industry that produces high quality, consistent and refined products can help remove the ambiguity around the ever-growing range of CBD products on offer. This is where pharmaceuticals and scientific based companies can play a positive role.

Pharma companies, small and big, have ploughed investments into CBD and medical cannabis. This includes a growing number of clinical trials and research and development from industry behemoths like GW, Sanofi, Novartis and Teva Pharmaceuticals. This recent interest has been attributed to an increase in scientific research surrounding the medical benefits of CBD, the legalisation of cannabis in several countries, and the increasing number of people opting to use cannabis as a substitute for pharmaceuticals and opioids.

Big pharma companies have the means and resources to ensure there is a standardised methodology and uniformity for CBD products. One of the potential benefits of big pharma moving into the market is that CBD can be better researched and regulated. The conclusive research alone it can produce is beneficial for manufacturers, consumers and healthcare professionals alike and will boost the credibility of cannabis as a legitimate treatment for medical and wider wellness purposes.

Big pharma’s involvement is likely to diversify products and formulations to satisfy the needs of patients and customer with new strains, delivery mechanisms and flavours expected. These developments will undoubtedly strengthen the pipeline of cannabis-related products and medicines, unlocking new prospects in the cannabis pharmaceuticals market and undoubtedly help to improve the quality and safety of products.

With estimates also suggesting that the CBD market could account for up to $4 billion worth of pharma sales each year, pharmaceutical interest will grow and inevitably change the market in the future.

While it’s certain that CBD will begin to feature in more pharmaceutical products and capitalised, there is concern that big pharma will push smaller businesses out of the market, creating a CBD monopoly. Only time will tell if (and how) big pharma will impact other producers and cannabis brands.