Regarding today’s FDA hearing on cannabis-derived compounds
A statement from Giadha Aguirre de Carcer
Anticipation has been building in the cannabis industry as the U.S. Food and Drug Administration (FDA) meets today regarding how to regulate cannabidiol (CBD), one of the most important compounds in the cannabis plant.
CBD is a non-psychotropic cannabinoid, which research has shown to have antiepileptic and anti-inflammatory properties. CBD represents the fastest-growing sector of the global hemp industry and will continue to be a catalyst for the cannabis industry’s expansion and maturation. CBD can be produced in three different ways – pharmaceutically, derived from hemp, or derived from marijuana.
New Frontier Data is the industry leader in providing accurate data and analysis of the major trends defining the global CBD market. Growth in global CBD sales will be largely driven by the United States, where CBD sales are expected to grow at a 36% CAGR between 2018 and 2022. By 2022, pharmaceutical, marijuana-derived, and hemp-derived CBD project to represent 14%, 29%, and 58% of total CBD sales, respectively. Today, the split is 51% hemp-based CBD and 49% marijuana-based CBD. (The first pharmaceutical CBD product, Epidiolex, has recently been approved and had shown promising early sales growth).
The FDA meeting is significant for several reasons. The clarification of rules surrounding the production and sale of CBD products will create a level playing field for companies and ensure consistent product-quality and labeling standards for consumers who are currently dealing within a highly opaque environment. Additionally, there are many companies eager to enter the market, yet awaiting clearer federal guidelines to avoid risking the considerable investments required to activate large-scale cultivation, processing, and product manufacturing operations.
New Frontier Data’s recent series of hemp and CBD industry reports – The Global State of Hemp: 2019 Industry Outlook and The CBD Report: 2018 Industry Outlook – further detail the market dynamics. New Frontier Data also offers free industry reports about each of the cannabis, hemp, and CBD sectors at region levels, including The Africa Regional Hemp and Cannabis Report: 2019 Industry Outlook and The Latin America Regional Cannabis Report: 2019 Industry Outlook.