How The Legal Status of CBD in the United States Will Affect the Industry

The farm bill 2018 is a massive piece of legislation which is supposed to be renewed after every five years. The legislation outlines a variety of things from environmental land issues to food stamps. The main difference between the 2018 legislation and the previous ones is that it has legalized industrial hemp which was not there in the previous versions. Plants used to produce CBD oil have also been legalized.

Congress has agreed to the final version of the Farm Bill 2018 and President Donald Trump is expected to sign the legislation soon. However, this is not a typical farm bill as it provides important nutritional and agricultural policy extensions which involve the cannabis plant. Cannabis has not been part of the conversation historically, but this year Mitch McConnell, the Senate Majority Leader supported the legalization of Hemp products which has brought the cannabis plant into the limelight.

CBD has always existed in confusing legal gray where it has been governed by laws that are different according to states. Despite the questionable legality the consumption CBD products reached $350million in 2017. This figure is however expected to rise once the figure has been signed into law.

Future of cannabis after the legalization

The fastest growing segment in the cannabis industry is the sale and purchase of products that contain cannabidiol (CBD). CBD is similar to THC in its chemical structure which is the main psychoactive compound in marijuana. However, CBD does not have any euphoric effect due to its low content of THC and has been used in the treatment of anxiety, inflammation, and other neurological disorders.

In the legislation, hemp is defined as the cannabis plant that cannot contain more than 0.3 percent THC. The CBD legality requires that any CBD oil product does not contain high levels of THC that is associated with the “euphoric” effect. As such, hemp will not get you high. With the legalization of CBD oil, the industry is expected to experience improved marketing as many people are expected to start using CBD oil products.

According to reports by the Hemp Business Journal, the CBD industry is expected to reach $2.1 billion by 2020. Canada and the European Union have also started cultivating CBD which is imported legally as an isolate into the US. With this trend, the market is expected to grow rapidly within the next few years with the importation of the product to other parts of the world. CBD oil distributors are also expected to increase as the demand for CBD continues to grow.

Bethany Gomez a Director of Research at the CBD market Research Organization Brightfield group, views the farm bill 2018 legalization as a watershed moment for CBD oil in the United States. CBD has now moved into the light from the legal gray after Hemp and all its derivatives were removed from the controlled substance act. This will allow CBD oil products to make their way into the mainstream distribution channels. These will include mainstream consumer packaged goods like drinks, skincare, tobacco, and pet products that will capitalize on the emerging market.

CBD infused beer

Marijuana-infused beer is also expected to join the CBD market in the near future. A number of beer companies have been spending millions of dollars on research and clearing the path of rules and regulations associated with Hemp products. In San Diego, there is a startup that is trying to get its weed beer to the masses. To achieve this, there is a new way of engineering that is expected to enhance the way CBD enters into the bloodstream.

A multi-state production system is being developed that will only infuse the pot into the drink once the drink reaches a state where it is sold. Nevada and California have seen a number of the CBD infused beer sold to some of the residents. The trend is expected to continue in other major states as CBD legality continues to grow.

Future CBD market

The CBD hemp products market is expected to continue with the growth in the future with many products being infused with CBD. Drinkables make a very small market in the CBD industry. According to Troy Dayton, ArcView Chief Executive "many big companies are looking for ways of intersecting functional beverages and beer". Arcview is an organization that conducts research into the cannabis market and helps to connect different investors with early-stage companies. The intersection will enable people to have their favorite drink, but at the same time have the health benefit that comes with CBD oil.

Sales and values of CBD products are expected to rise due to the increasing demand for hemp products. Many companies are racing to get involved in different levels. The growing awareness with regards to the dietary advantage of hemp oil and hemp seed is also expected to propel the demand. There are three primary sectors in the US market which are expected to experience expansive growth and these include pharmaceutical CBD, marijuana-derived CBD, and hemp-derived CBD. Farmers across the US will also turn their attention into commercialization of their CBD products as a way of increasing profitability.

Many countries are also expected to legalize the use of Hemp products as the popularity of CBD oil continues. Currently, Canada and the European Union have legalized the growth importation and exportation of CBD isolates. With the trend, there is an expectation that many countries around the world will legalize the use of medicinal and recreational marijuana in the future.