This year , covid-19 has hit severely, with wide-reaching economic implications for nations around the globe. In the United Kingdom is no exception since the economy has borne the brunt of its negative impacts.
Certain markets, however, continue to thrive in spite of all challenges. One of these markets is the Cannabidiol (CBD) industry , which seems to flourish despite the specific restrictions that are associated with an epidemic that is global.
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The UK CBD market’s success depends mostly on the rising popularity of CBD oil as well as various other CBD products. According to a survey conducted in 2019 that found over 6 million Britons have tried the CBD product that is approximately 11 percent of UK people over the age of. A large portion of those who use CBD oil do so CBD oil to benefit from its medicinal benefits to manage insomnia, anxiety, stress and general well-being.
Recently, reports indicate that the consumer demand in CBD products has increased dramatically since the outbreak of covid-19. This increase is not a surprise since the pandemic has intensified the symptoms CBD users seek for treatment. Stress from dealing with restrictions on movement, financial issues in the workplace, job loss, and general uncertainty over the future have made people feeling more anxious and stressed than ever before. In the present, UK CBD consumers seek for relief from CBD products that can restore some peace to their life.
The increase in demand from consumers is a positive sign to this UK CBD sector. Experts are now putting the CBD market worth to be over PS1 billion in 2025, an increase of nearly PS300M in 2019.
UK Regulators Kick Against Treating CBD as a Narcotic
Since its inception, CBD has always stirred quite a bit of controversy because of the close ties it has with cannabis. The reason for this is the fact cannabis is an illegal substance in the UK and is also the main source of the raw material from the CBD is commercially available. CBD extracts. While the majority of CBD products available are made from hemp plants that have been that have been certified to be by the Home Office, the tussle to completely legalize CBD continues.
The year before earlier in the year, this year the European Commission (EC) announced its preliminary decision to classify CBD as an opioid. If the EC’s decision becomes lawful then all CBD products within the European Union will effectively get labeled as illicit. A move like this could be catastrophic and halt the growth of the industry, which is expected to reach 400 percent in 2025.
In this way in this vein, the UK CBD industry was able to win an important dispute when food regulators took a stand at the European Commission’s (EC) decision to classify CBD as an drug. In the UK, Food Standards Agency (FSA) released a statement in September. In it, the regulator stated that it is the UK Home Office is not able to agree with the European Commission’s position about making CBD an drug. This means that producers don’t need to be concerned about CBD products being deemed unlawful across the continent.
CBD Gets a Novel Food Status
Another obstacle that is looming over CBD’s UK CBD industry was when the FSA made plans to follow in the EU’s model and recognize CBD as a food item that is considered novel. Foods that aren’t consumed in any significant amount prior to April 15, 1997 are classified as Novel Foods.
As per the rules, UK CBD manufacturers are now required to undergo an extensive and long-winded procedure of vetting their CBD products according to the FSA’s standards. If they fail to receive the required authorization will have their CBD products removed from the shelves and then barred from selling on the shelves in the UK. This has received an unpopular reception from stakeholders as they are divided over the implications for the market of the new regulations.
On the other side, a lot of UK CBD companies share the belief that the new regulation could hamper the business activities. Small-sized companies are especially at the risk of being excluded of the marketdue to the expense of the process of obtaining the Novel Food authorisation. In addition, the volume of technical information needed in a novel food application can also be a deterrent element for many businesses.
On the other hand established manufacturers are cheering the decision as a positive step in this CBD industry. The FSA states it is practical steps aimed to combine the protection of public health and consumers’ choices. Health authorities, however, have full support for the new regulations because the new rules can help to make CBD products more secure for consumers as well as build confidence from the general public.
A peek into the future of CBD in the UK
While the British CBD sector is still shrouded in legal uncertainty and a myriad of issues, demand from consumers has continued to grow. As CBD oil has gained popularity as a cult product the producers continue to offer consumers other intriguing product types.
CBD manufacturers are leading the way by offering innovative Wholesale CBD items that include CBD Gummies such as ZenBears to topicals, drinks capsules, and much more. CBD customers are now spoilt with choices because there’s a product available to satisfy every need.
It is believed that the world’s CBD industry is sure to be benefited by more efficient regulation that focuses on quality of products and consumer confidence. But, the recent efforts to structure the market that is largely unregulated suggests that further positive developments are to be expected for the burgeoning sector.
