Since 2012, eighteen states and the District of Columbia have legalized recreational marijuana, and in 2018, the federal government decriminalized industrial hemp farming. In just two years from the time hemp with less than .3% THC became legal to grow and sell, Consumer Reports estimated that 64 million Americans tried CBD products––almost 20% of the population. CBD sales have neared five billion dollars annually in the last few years.
The growth is just getting started. The shift in public opinion and the laws surrounding sales means that executives, investors, and manufacturers should all be thinking hard about the available opportunities.
More Options, More Consumers
In the personal care industry, we are just beginning to discover the possibilities of these products. Research has advanced enough to know that CBD is not the only cannabinoid––there are at least 113 in marijuana, and each has its own properties and potential uses. Studies have shown that some may even have better-targeted effects than CBD. CBN, for example, may be a good sleep aid that producers can use in oils, chest rubs, sleep drops, or anything else that brands can dream up.
As the tools to extract more from the hemp plant become mainstream and costs come down, more of these different compounds will be viable for the mass market. As new uses are discovered, the versatility of hemp and cannabis-derived cannabinoids opens up new markets.
New Delivery Systems
So far, the majority of CBD products are oils and edibles. However, dietary supplements, skin products, and other personal care items are starting to appear on the market. The next few years will see greater experimentation with various food items and cosmetics that utilize CBD and other cannabinoids.
Some consumers may still feel reluctant to ingest CBD, so incorporating topical products may be more palatable. Customers interested in scalp healing, promoting hair growth, relieving inflammation or skin irritation, along with a variety of other conditions, through hemp and its derivatives, will have more options and specialized care products to choose from.
Legal Classification Holds the Industry Back
Investors and lenders have stayed on the sidelines while the CBD industry finds its footing, mainly due to legal concerns. Very few banks are prepared to back a business loan for selling CBD products. CBD is still considered a very risky investment because of the continued federal classification of marijuana as a schedule 1 drug.
Most big brands have also chosen to wait and see what the future holds for cannabinoids. However, marijuana reform has growing bipartisan support in congress, and rumors that President Biden may consider decriminalizing marijuana on a federal level continue to surface. Even if an executive order is not granted, cannabis reform bills continue to be sponsored in both the House and Senate, and it is only a matter of time before one breaks through the gridlock.
Companies that leave CBD on the table will find themselves far behind other industry players if and when the legislation changes.
Education is Key to Moving Forward
While public opinions on CBD and other hemp products have come a long way, if the industry is to reach its full potential, there is work to be done by insiders. Some people continue to believe that CBD is either a gateway drug or a bunch of snake oil with no discernible effects.=
Scientists and companies that create CBD can do a lot to push the needle. Continued studies, statistics, and facts will be what move hesitant individuals to overcome the stigma and give CBD a chance.
More research and added credibility can also help convince lawmakers that not only are cannabinoids safe; they can provide real relief to a full spectrum of people with everything from anxiety to dry skin.
Conclusion
CBD has never been closer to being fully embraced in the United States and many other countries throughout the world. The availability of new cannabinoids for more targeted uses and changing laws surrounding hemp and marijuana should be all the incentives that entrepreneurs and investors need to take another look at the industry.
As consumers learn more about the benefits of CBD in all types of products, producers must be ready for the tidal wave of demand that comes.
About the Author: Jordan Erskine has almost 20 years in the beauty/skincare industry. Jordan currently serves as Co-Founder & Principal for the award-winning contract manufacturer Dynamic Blending. He has spent his entire career in the manufacturing and R&D world. Jordan started his career at a large contract manufacturing facility, Wasatch Product Development, in Draper, Utah. There he wore many hats in R&D, and manufacturing, In 2015, Jordan decided to start Dynamic Blending with Gavin Collier due to the huge need for innovation in a stale industry, contract manufacturing.
Dynamic Blending Specialists is a full-service turnkey contract manufacturer of cosmetics, personal care, skincare, dietary supplements, nutraceuticals, and much more. Our team consists of industry experts with an extensive background in cosmetic chemistry (R&D), formulations, manufacturing, packaging, shipping, and quality.
