Overall, Slovik said, the formula for success is simple, even if the process is complicated.
Hemp and cannabis are closely related; in fact, industrial hemp is actually Cannabis sativa L. The difference in name is mostly a function of a legal definition, which sets the threshold for THC content. The flowers of a hemp plant contain little to no THC, while the flowers of a cannabis plant (commonly referred to as marijuana) contain much higher levels of THC.
If you're considering getting involved in the CBD industry, you first need to understand more about cannabinoids and the products that utilize them.
How to gain a competitive advantage
Some trends the CBD market might experience in 2020 are increased potency of products, more brick-and-mortar CBD shops, more pharmaceutical CBD products, and more access to products online through CBD websites and e-commerce shops. In fact, CBD online sales currently account for 60% of the sales channels.
"This industry has been more or less illegal for the past century," said Slovik. "At this point, there's major, major momentum. Many people are trying to break in, so don't follow the herd. You want to be a leader."
CBD isolate, as the name suggests, is a concentrate that only contains CBD and no other cannabinoids or terpenes. While the purity of CBD isolate might sound desirable, there is some evidence to suggest that full-spectrum CBD promotes an "entourage effect;" that is, the compounds in a full-spectrum hemp extract work together to promote more significant effects. The entourage effect is still under investigation by researchers studying CBD and other cannabinoids.
Industry analyst BDS Analytics predicts the U.S. CBD market will reach $20 billion in sales by 2024. This would be a major surge from $1.9 billion in 2018 (a 49% annual growth rate).
Products made with hemp grown overseas can be even more problematic, because they are not subject to any state or federal testing, say both Lanier and Boyar. “There needs to be testing results available to consumers,” Lanier says, “and manufacturers should follow the FDA’s guidance for good manufacturing practices.”
And those choices are soon likely to become even more confusing: The CBD market is expected to multiply at least sevenfold by 2021, to $2.15 billion, up from $292 million in 2016, according to the Brightfield Group, a market research firm that specializes in cannabis. Even Coca-Cola says it’s “closely watching” the growing interest in CBD and its potential as an ingredient in some of the company’s beverages.
To be sure, that notion is more theoretical than proven. And only a small amount of THC—as low as the 0.3 percent cutoff required for CBD products made from hemp—may be needed to enhance CBD’s therapeutic effect.
5. Look for Products That List the CBD Amount
If an online manufacturer or a retail store doesn’t have the information, or refuses to share it, avoid the product and the retailer.
Some CBD products also describe themselves as including or coming from “hemp oil.” In some cases, manufacturers use that term to mean CBD oil, which is oil rich in CBD made mainly from the leaves, resin, or flowering tops of hemp plants. But “hemp oil” more often, and more properly, refers to oil made from the seeds of the plant, and contains only very small amounts of CBD, says Lanier at the Hemp Industries Association. That oil is often included in hemp-based soaps, cosmetics, and similar products.
In addition to THC, Meyer and consumers also need to worry about whether CBD products have contaminants. That’s because cannabis plants readily absorb heavy metals, pesticides, and other potentially harmful chemicals that may be in the soil or water, says Kyle Boyar, a cannabis scientist at Medicinal Genomics, a company that develops tests that help labs comply with state rules. To protect against that risk, cannabis plants should be tested frequently while they are growing, and finished products should be tested, using validated methods, too, Boyar says.
This is important mainly if you want to avoid the head-high that comes with THC, something that is important to many people who are considering CBD. But knowing the THC level can be important for other reasons, too, including how effective a product might be, as well as where you can buy it.