Ask Our Experts: Europe Union’s Crackdown on CBD


Q: Judging by recent actions among European Union member nations to deny the marketability of CBD, what is the likely fate of the promising industry there?


By Trevor Yahn-Grode, Data Analyst, New Frontier Data

A: The European CBD industry developed with explosive speed, but suddenly seems poised to have its legs legally taken out from underneath it. Despite a multitude of court challenges from European hemp organizations, the European Commission (EC)’s preliminary decision to categorize hemp extracts – including CBD – as narcotics is already having negative consequences for stakeholders across the continent. Italy’s recent decision to ban hemp extracts comes on the heels of crackdowns in both Germany and Poland against offering CBD products in vending machines, or in some retail stores.

Pending decisive legislation action from an executive level, New Frontier Data expects crackdowns to similarly prevail in the EU. Though it will likely spell dire implications for capital investment in the nascent industry, and complicate business operations for international hemp companies, the news is not universally bad. Notably, the pending Brexit by the United Kingdom affords a much more welcoming stance on CBD, rejecting the EC’s preliminary decision to categorize CBD as a narcotic, and maintaining that it will treat CBD as a novel food. Regardless, the foreseeable situation on the continent is severe, and the coming months will be critical for the European CBD industry, showing whether such regulatory obstacles shall be overcome.