We can’t escape those three letters that seem to be everywhere and in everything. We’re talking about CBD and it’s not going anywhere, anytime soon.
From foods, beverages, cosmetics, health products, skin-care, dog treats, kid’s vitamins, and pharmaceuticals, CBD sales are expected to exceed $20 billion in the U.S. by 2024, according to BDS Analytics and Arcview Market Research.
Do we have your attention? The CBD business has become a bit out of control and quite saturated, meaning everyone wants in. So much so, it is hard to know who is doing it right and who is doing it wrong.
To comprehend where the CBD industry is going, it is important to understand where it came from. Only the strong will survive and we will witness the many casualties as consumers begin to understand more about what CBD is, how it is grown, and what it does.
What is CBD
In a 2018 article written for The New York Times, the author asks the same question. “What is CBD? Plenty of people still have no idea.” Fast forward to 2020 and people still do not have a solid grasp on the ins and outs of CBD. The world of CBD still remains murky for several reasons:
- Lack of FDA approval
- Lack of education for consumers and business owners
- Too many bad products
- Lack of transparency
- Unclear future
CBD is a cannabinoid derived from non-psychoactive hemp. In other words, it will not get you high. Hemp-derived CBD growth and marketing became legal in 2018 with the introduction of the Farm Bill, which protected hemp farmers, removed hemp from the definition of marijuana, and reclassified it as an agricultural commodity. There was a dramatic growth in the industrial hemp farming market as many farmers speculatively rushed in to try to cash in on the Farm Act.
- Below are up-to-date facts about CBD gathered from various sources as stated on SingleCare.com:
- 33% of American adults have used CBD once or more
- Hemp-derived CBD products are legal in all 50 states, as long as they contain no more than 0.3% THC
- Of the Americans who use CBD, the most common uses are for pain relief (64%), anxiety (49%), and insomnia (42%)
There are numerous in-demand uses for hemp fiber, seeds, and oil. Cannabis, including hemp, is a vital part of the alternative and holistic treatment options for many patients suffering from cancer, multiple sclerosis, anxiety, nausea due to chemotherapy, and chronic pain, among various other issues.
How CBD Became Mainstream
With more and more consumers focusing on health and wellness, including millennials who take self-care very seriously, CBD is a very attractive trend, especially to those seeking alternative health treatments. Katie Gilsenan, a consumer insights manager for the trends and insights team at GlobalWebIndex says, “Health nowadays for consumers has become more than just going to the gym. It’s more holistic and includes different wellness activities like meditation and yoga.”
Even before COVID, consumers have been searching for a different way to approach their health and wellness. Now it is even more imperative to keep healthy and strong. Access to CBD products is abundant and if a label says these products are healthy, consumers believe it. This helps me sleep? Sounds good. This makes my skin look younger? Sounds good. This will make my dog less anxious when I leave the house? Sounds good.
All it takes is a celebrity influencer, like one of the Kardashians posting an image of her drinking CBD infused iced tea or hosting a CBD themed baby shower. Followers want to emulate these celebrities, even if it means a lack of education on the product.
Important factors to purchasing CBD products include accountability and transparency about where and how it was grown, how clean it is, and if it was produced sustainably. Just because it says so on the label does not make it true.
Regarding FDA approval of CBD, a report was issued to Congress that states the “FDA will continue to work on a regulatory framework for Hemp CBD but in the meantime will provide enforcement priorities that will provide transparency to the industry.”
Why are so many CBD products currently allowed on the market? There are certain rules that need to be followed including no mention of health and medical claims, CBD cannot be added to any FDA-approved ingredients and CBD marketing is now allowed on certain social media platforms, to name a few. Does everyone follow these rules? No.
Where Is the Out of Control CBD Fad Heading
An explosion of CBD products continues to burst across the scene as the reigns are loosened a bit. Everyone is a CBD expert now hence, the CBD industry is a bit like the “wild west,” in terms of how products are produced, processed, and advertised to customers. Who will succeed and who will fail? Joan Sutton, founder of 707 Flora thinks “what we will see is the FDA and USDA being more clear with their guidelines and regulations, and this will push out companies that are not on the up and up.”
Standard Dose founder Anthony Saniger predicts a brand pruning in 2020, too. “You will see brands fall out of the market and major players entering the market,” he says. “Additionally, with legislation, there will be changes required to packaging and ingredients causing smaller brands to reformulate and repackage, which will take an expensive toll.”
Big names are currently quiet, for now, but they are preparing for some “skin” in the game. Well-known acne brands like Proactive and Neutrogena may soon be challenged with cannabinoid skincare known for its anti-inflammatory agents and powerful antioxidants.
LB Equity founder, Jay Lucas says, “Right now, partly because of the regulations and partly just the found uncertainty, the murky environment, the big guys are still not anywhere involved. So whether it be Procter & Gamble or L’Oréal or any of the big players, they’re totally on the sidelines.
Nielsen research tells us, “The next decade for the hemp-based CBD market has the potential to be a game-changer for the traditional CPG and retail industry.
Key Ingredients for CBD Success
The inundation of CBD products from companies who do not have a vertical supply chain or remain transparent has taken away from those businesses who are educated, sustainable, honest, and truly care for the health and wellness of their consumers. Consumers are smart and will figure out the real deal from the quick money makers.
Though the market for industrial-level hemp growing is in its infancy, as production accelerates, agribusinesses are needed that can create marketable products from large volumes of hemp.
Within this market, we at Greenfield Groves, Founded by Lindsay Giguiere, are building vertically integrated health, wellness, and beauty business specifically based on the development and distribution of proprietary formulations combining adaptogens, proprietary blends of CBD/CBG/CBN, and other therapeutic botanicals into our superior consumer products.
Establishing vertical integration is already a huge differentiator in the CBD industry, something not every company can achieve. We oversee the entire journey of CBD from seed to shelf, providing us with quality control, consistency, and scalability. Why does this matter to consumers? Trust. Consumers want to know what they are putting in and on their bodies.
In such a crowded space, it is vital to stand out and our farming operations in Southern Oregon allow us to capture margins while simultaneously controlling the quality and efficacy of our catalyst ingredients for growth.
Our first consumer brand to launch was Herban Goods, which is a science-backed series of services and product collections that incorporate organically grown adaptogens and the hemp-derived cannabinoids CBD, CBG, and CBN, along with other therapeutic botanicals as catalyst ingredients. We are very excited about introducing these special products to our target audience.
From genetics and agriculture to wholesale bulk to product development and marketing, having a company-operated agribusiness has given us a thorough education that comes with a 360-degree view on the potential of modern, vertically aligned farming practices, with a fully-transparent and sustainable supply chain tied to a complete digital blockchain ledger furthering our promise to the consumer of the highest-quality, efficacious, sole-sourced adaptogens, hemp-derived CBD, CBG, CBN, as well as other therapeutic botanicals.
Perhaps a mouthful, but a mouthful of truth and transparency is what consumers expect and deserve. There is no stopping the possibilities that lie ahead for the real CBD players.