By Lisa Chau November 12, 2021<\/p>\n
New York \u2014 \u00a0In 2018, CBD-infused products sales totaled $1.9 billion, according to research by Colorado-based\u00a0BDS Analytics<\/a>\u00a0in partnership with Arcview Market Research. That number is forecasted to grow to a whopping $20 billion by 2024, spurred by greater accessibility and an ongoing introduction of new products.<\/p>\n Setting the stage for that explosive growth was the 2018 Farm Bill, which legalized industrial hemp cultivation for products manufactured with cannabis sativa plants containing less than 0.3 percent THC, the main psychoactive compound in cannabis. As a result, the active compound in hemp, CBD (cannabidiol) has infiltrated the beauty, health, and food markets. While\u00a0THC and CBD<\/a>\u00a0are both natural compounds found in plants of the cannabis genus, the latter does not produce a \u201chigh\u201d or euphoric sensation for users only seeking to alleviate pain or anxiety.<\/p>\n Evidence of the expected rapid growth in the CBD product category was on display at the\u00a0White Label World Expo New York<\/a>, an online retail sourcing show held earlier this fall at the Javits Convention Center.<\/p>\n There, Andre Addison explained that his\u00a0Canaboxx<\/a> invention is a CBD product vending machine, known as a \u201cdispensary in a box.\u201d<\/p>\n \u201cThe technology automates the way consumers purchase CBD products much the same way banks integrated ATMs as a system for convenience,\u201d said Addison, the company\u2019s owner, and president. \u201cAdditionally, the Covid pandemic has created a greater need for no-contact sales and social distancing.\u201d He imagines a world where such vending machines will be on every street corner once all 50 states have deregulated marijuana usage.<\/p>\n Meanwhile,\u00a0Milkweed Cannabis Confections\u2019<\/a>\u00a0Will Fleming is focusing on the top end of the spectrum, with edibles for luxury clients.<\/p>\n \u201cThe vast majority of cannabis edibles in the market today are commodity products: mediocre quality, mediocre ingredients, lackluster flavors,\u201d said Fleming, the company\u2019s director of sales and operations. \u201cMilkweed Cannabis Confections is the brainchild of former New York City pastry chef Andrew LeStourgeon, whose mission is to bring luxury cannabis edibles to the market\u2026 utilizing local and high-quality ingredients, creating unique and compelling flavor profiles, and executing all of this at a top-tier level.\u201d His team imagines a world where their products are widely enjoyed at upscale weddings.<\/p>\n Carolindica<\/a> CEO and Founder Chris Karazin launched his company in 2019 as a craft CBD manufacturer, specializing in tinctures and vape cartridges. Over time, he branched out into a variety of other product types, including gummies, capsules, topicals, and candy.<\/p>\n \u201cLike tectonic plates, being involved at this time in the hemp industry means we get to fill in the huge cracks that develop as the industry shifts, flowing like lava to adapt to the emerging niches,\u201d Karazin said. \u201cCurrently, the market for pure CBD products is extremely saturated, so the industry is trending towards working with the more unique hemp compounds in order to expand the benefit offerings and stay ahead of the curve.\u201d<\/p>\n Carolindica segments itself by working with just about anything it can extract from the hemp plant, including CBD, but also CBG, CBC, CBN, and Delta 8 THC. Each of these compounds has different properties. \u00a0For instance, CBN is the most sedative and provides the best benefits for sleeping, while Delta 8 offers the most recreational value to consumers.<\/p>\n By blending these cannabinoids together with terpenes, the company creates formulations that target specific issues like sleeping difficulties, pain and anxiety, while blending the lines between recreational enjoyment and pure medicinal value. There are well over 100 cannabinoids in the hemp plant, and the industry can only work with a tiny percentage of them currently. \u00a0Karazin fully believes that the future of this industry will revolve around unique compounds focused on both the medicinal and recreational values offered by the hemp plant.<\/p>\n Deborah and her son Stephon Morton entered the industry in 2019, by launching four major products: Mor-Hemp CBD coconut oil, \u201cLadi Mary\u201d smokable CBD Flower, and TUSK Hemp-infused Vodka and Rum. \u00a0As a new liquor brand, they\u2019ve found it difficult to partner with distributors in major states because the company cannot provide a proven track record of consistent profits.<\/p>\n Moreover, their family-owned business\u00a0Mor-Hemp<\/a> has faced challenges getting grants for minority farmers to purchase farming equipment, supplies, and facilities needed to effectively expand. For example, they applied for a grant for disadvantaged farmers in Halifax County, Virginia.<\/p>\n \u201cWe submitted all the proper paperwork and patiently awaited the outcome. After months of no pertinent feedback or information, we did our due diligence of communicating with the office. Only when we reached out were we informed that the agency was changing directors and our\u00a0paperwork suddenly went missing<\/a>, and we were not awarded the grant,\u201d Deborah Morton said.<\/p>\n As explosive as the growth of the CBD has been in recent years, there are still many unknowns and hurdles to overcome.\u00a0Trojan Horse Cannabis<\/a> Founder and CEO Christopher Fontes currently serve on the Government Affairs Committee for the National Industrial Hemp Council. He says the next big trend for the industry is the realization that Delta-9 THC is a legal product, so long as it is hemp-derived from a Farm Bill-approved program and remains below the federal threshold of 0.3 percent Delta-9 THC by dry weight. If that happens, attempts to create THC alternatives like D8, D10 and THCp will start to slow down or disappear.<\/p>\n More and more manufacturers are realizing that FD&C [Federal Food, Drug, and Cosmetic Act] regulations will treat their products like dietary supplements regarding safety and truth-in-labeling, Fontes said. \u201cThe industry fully expects hemp-derived ingestibles to be regulated as a dietary supplement at some point by the Food and Drug Administration. Doing so creates a regulatory framework of consumer safety, and is welcomed by the good actors in the industry. \u00a0This could also have significant impacts on the hemp supply chain.\u201d<\/p>\n Recent laws legalizing commercial hemp farming have led to explosive growth in the CBD industry. \u00a0However, the marketplace is still in its infancy as many obstacles and unknowns remain.<\/p>\n Minority farmers need grants, and a stigma still remains\u2014\u00a0some studies<\/a>\u00a0have shown that CBD \u201cusers were\u00a0frequently labeled\u00a0as irresponsible and unreliable \u2018potheads\u2019 by a variety of people including employers, colleagues, and even healthcare providers\u201d. Consumers are increasingly interested in the benefits of CBD, but quality control and safety need to be addressed and regulated quickly.<\/p>\n