The Farm Bill Legalized CBD and hemp in 2018, and specified guidelines, that hemp can be sold as long as contained less than <.03 THC; anything that contains more than this is deemed to be federally illegal. The legalization has really bombed the industry in such a way that CBD has become a thing for vendors, retailers, advertisers, and manufacturers. As the market changes more and more investment groups and investors are turning to new opportunities in manufacturing facilities and product development. Although banks are still in the grey area, as FDA is clamping down on business that sell CBD as food additives or label as dietary supplements.
A press release from Patrick McCarthy, who is the CEO and co-Founder of ValidCare and a provider for market intelligence and research for the hemp-derived product industry is providing predictions in this space.
“Today’s consumer cares about where the products they put in, and on, their bodies come from. From big breweries to boutique ice creams, mainstream brands showcase their farmers in their advertising and market organic, cruelty-free and hyper-local manufacturing practices on their packaging to assure consumers their products are natural, safe and worth a premium price. This trend will hit the hemp industry next, as consumers demand information on plant origin, farming practices, product composition and sustainability.”
Baby Boomer Consumption Escalates
“The AARP crowd is one of the largest demographics using hemp-derived CBD for chronic joint pain and sleep. Expect this trend to increase as Boomers seek to replace prescription and OTC pharmaceuticals with hemp-derived products — and to lobby for coverage and/or reimbursement through FSAs, HSAs and supplemental MediCare policies.”
Hemp As Mental Health Aid
“Today, one in five Americans report they use hemp-derived CBD for ‘mental health reasons’ such as anxiety. In 2020, we’ll see even more people ditch Prozac prescriptions for non-impairing hemp-derived CBD to support their mental health goals. Expect brands targeting this audience to commission research on hemp-derived CBD’s functional benefits for mental health.”
Paving The Way For Minor Supplements
“CBD was this decade’s craze, but as the market for cannabidiol becomes oversaturated, product companies will introduce other interesting minor cannabinoids like CBN and CBG, already touted as having functional benefits tied to sleep and appetite. Expect the FDA to voice concerns about these ‘cannabis derived compounds’ and mirror its communication to industry and the public about the need for these products to be properly vetted for safety and use – and for product companies to market them nonetheless.”
At CNP Operating we believe that being transparent with our customers is very important. We have aligned ourselves so we can in full control of the entire vertical when it comes to manufacturing CBD. We strongly believe that in order to have a long lasting product you need to have a reliable manufacturer. We pride ourselves with opening our facility and doors to our clients to know exactly what they are getting each and everytime.