CBD Industry Behaving Like the Wild West
We’re back with a new podcast episode and this time we are talking CBD! Perhaps you have heard already, or maybe this is new news to you – but the CBD industry is filling up with bad actors and taking on a wild west atmosphere lately.
CBD is definitely all the rage across any number of demographics – from baby boomers to pet parents to health and wellness practitioners. You can purchase it almost anywhere from mini-marts to Amazon.com. We recently ran an episode detailing the FDA’s increasingly aggressive stance toward the industry and the products, but that may only be a drop in the proverbial bucket compared to what’s going to come next.
[LISTEN: FDA to CBD Industry: It’s a drug, and we’re going to regulate it like one – PODCAST EPISODE]
The passage of the Farm Bill in 2018 has created a situation where CBD derived from hemp is legal, while CBD derived from cannabis is not. We aren’t going to dispute the science behind this division, or why it makes absolutely no sense, especially since it seemed to be in the industry’s best interest when this occurred.
Unintended consequences at work here perhaps?
Recent events are creating a difficult scenario for the CBD industry – untested, mislabeled, and harmful products are making their way into circulation – whether its bad actors, greedy business, or just plain stupidity doesn’t really matter. People are being harmed by the products they are using, and that is just wrong.
How is the CBD industry going to overcome this problem before the FDA or Congress decides to shut down the industry and force manufacturers and distributors to spend millions of dollars to create products that are FDA approved before they can be sold?
Is there even a way to head off the trouble at the pass, or has it already morphed into a runaway train, headed down the hill, where both the brakes and the bridge are out?
The CBD industry could be in grave danger, and we need to address these issues and try to find solutions as fast as possible.
The Wild West of Wellness: A Look at the US CBD Industry in August 2019
The CBD industry in the United States in August 2019 resembled the Wild West – a period of rapid growth, immense potential, and a regulatory landscape riddled with uncertainty. Here’s a closer look at the key characteristics of this nascent market:
A Booming Market:
Consumer demand for CBD products was skyrocketing. Fueled by anecdotal evidence of CBD’s potential health benefits, products like oils, tinctures, edibles, and topical creams were flying off shelves. Market research indicated the industry was on track to reach billions of dollars within a few years.
The Hemp Farming Bill’s Impact:
The 2018 Farm Bill legalized hemp cultivation at the federal level, paving the way for a surge in domestic CBD production. This opened doors for new businesses to enter the market and increased the availability of CBD products.
A Regulatory Maze:
Despite the Farm Bill, the regulatory environment remained hazy. The Food and Drug Administration (FDA) had yet to establish clear guidelines for CBD products, creating confusion for both consumers and businesses. This lack of regulation led to concerns about product quality, safety, and marketing claims.
A Spectrum of Products:
The CBD market offered a vast array of products, often with varying quality and potency. Consumers, with limited guidance, struggled to differentiate between reputable brands and those offering dubious products. Transparency and clear labeling were major concerns.
Marketing in a Gray Area:
Marketing CBD products presented a challenge. The FDA strictly limited health claims, forcing companies to get creative in their advertising strategies. Many companies resorted to focusing on general wellness benefits, avoiding any explicit mention of potential health cures.
Investment and Innovation:
Despite the regulatory hurdles, the potential of the CBD market attracted significant investment. Venture capitalists saw an opportunity, and funding poured into CBD product development, research, and distribution channels.
Looking Forward:
The future of the CBD industry in August 2019 was a mixed bag. While the market was booming, its long-term sustainability hinged on clear regulations, improved product quality standards, and responsible marketing practices. Industry leaders were hopeful that the FDA would provide much-needed clarity to establish a more stable and legitimate market in the years to come.
In Conclusion:
The US CBD industry in August 2019 was a fascinating paradox. It was an exciting market brimming with potential, yet constrained by a lack of clear regulations. As the industry matured, navigating this complex landscape would be crucial for businesses seeking to thrive and for consumers seeking safe and effective CBD products.