It seems like overnight that CBD products have become wildly popular.
CBD, the legal non-psychoactive compound known scientifically as cannabidiol, is derived from the hemp plant. Unlike marijuana CBD only contains just a hint of THC, meaning it doesn't give you a "high."
Congress legalized hemp-derived CBD on a national level back in December and this fueled the CBD market boom. But this week, the food and Drug Administration set the first public hearing on May 31st to discuss how to regulate CBD food and beverage products.
“It’s critical that we address these unanswered questions about CBD and other cannabis and cannabis-derived products to help inform the FDA’s regulatory oversight of these products — especially as the agency considers whether it could be appropriate to exercise its authority to allow the use of CBD in dietary supplements and other foods,” said Scott Gottlieb, FDA commissioner on Tuesday, as reported by “CNBC.”
We recently reported that a few beverage giants, including Coca-Cola and New Age Beverages Corporation, are looking into developing cannabis beverage lines.
However, the FDA’s rules prohibiting CBD infused food and drinks has made companies hesitant.
But this doesn't mean there isn't a lot of potential, especially on the state level.
The Hemp Business Journal anticipates that the CBD market will be a $2.1 billion market by 2020, which would be a 700 percent spike from 2016.
Depending on the outcome of the hearing, larger companies may be more inclined to jump on the CBD bandwagon.
As for states like Colorado where marijuana is legal, some current regulations have put a major halt on this market's growth.
"Substantial proposals are predicted to unleash an influx of money from larger investors into the state’s $1.5 billion-a-year industry while setting the stage for home marijuana delivery and limited public consumption of marijuana — the latter measure aimed at resolving an issue that vexes tourists and renters alike," writes "The Denver Post."
Basically, Colorado companies are struggling to compete with companies in other states because of the current investment rules. But Colorado lawmakers and cannabis business owners are fighting for bills that will promote growth in this sector. Read more at "The Denver Post" now.
Earlier this year, we decided to take a closer look at the CBD craze and some of the companies leading the way with innovative hemp products. Watch the episode of On Foodable below to learn more about the culinary cannabis movement.