The UK’s growing CBD marketplace
According to the Centre for Medicinal Cannabis, the CBD market in the UK is currently worth around £300M per year. CMC anticipates this amount will reach £1 billion per year by 2025. This is a lot of potential income from taxes, and that doesn’t even begin to describe the advantages.
The promise of CBD has caused a stir on the domestic market. Large corporations including Coca-Cola have expressed interest in producing CBD products in the UK. Once CBD oils, tinctures, and creams go more mainstream, early adopters expect high returns on their investments. Coca-Cola isn’t the only company to announce plans to enter the UK market. The company nordicoil.eu has done so as well.
Why is continued CBD market growth expected in the UK? According to data of the Cannabis Trades Association, the number of CBD oil users doubled just two years ago. Currently, there are more than 250,000 regular users. CBD is one of the fastest growing industries in the country.
Consumer interest in CBD has increased without a doubt. The shift is further demonstrated by the changing drivers of the economy in the agricultural hemp sector. There are signs that the current “hype” around CBD is not just a trend.
Data shows CBD’s popularity in the UK has reached a level of market penetration that is here to stay. Consumers span all classes and age groups. Major condition charities in the UK have started publishing educational output in response to this demand.
The UK’s CBD market has strong prospects with increasing demand and a willingness among people in the UK to try CBD products and even spend large amounts of money on a regular wellness routine that integrates CBD.
The British CBD market can expect a series of fundamental developments in the next three years according to the Centre for Medicinal Cannabis. These include greater competition and imports into the UK and increased product diversification, along with the issues around traceability and provenance.
Evidence shows CBD is well tolerated by the human body and long-term use doesn’t present any health risk whatsoever. There has been a rapid increase in the number of global studies into CBD. 10% of these are based in the UK.
Some CBD products are also subject to UK law in respect of regulations governing cosmetics or food. Any product containing CBD must have a product license if it claims to have medicinal benefits. Producers are not allowed to make medical claims, or else they face enforcement by the MHRA.
The European Union’s Novel Food of 2019 classified all extracted cannabinoids as “novel”. This has yet to be enforced in the UK, but if it is, it will present a major challenge to the CBD market.
The UK CBD industry is obligated to behave responsibly around how it uses and promotes CBD. If not, there is a risk that negative connotations with CBD will form. These, in turn, will have wider ramifications in terms of public perception of the product. Some companies are setting an example in respect of responsible behaviour and adherence to standards, pushing for more detailed sales and labeling literature in the case of the above company.
The editorial unit