Cannabinoids are the fastest-growing sub-industry in the industry. According to a report by Hemp Industry Daily, about 94% of the cultivators cultivated cannabis specifically for the production of cannabinoids. Although the price of virgin CBD biomass has fallen by more than 80% since 2015, the CBD and secondary cannabinoid markets still provide abundant opportunities for industry operators.
One of the looming problems facing the cannabinoid market is how the US Food and Drug Administration (FDA) regulates CBD. For some observers, the agency’s unresponsiveness means that it is unwilling to monitor it at all.
According to Steve Groff, founder of Groff North America, the FDA is very willing to take action, but maintain its standard level of due diligence.
“The FDA is looking for a way to accept this,” said Groff. “From the science side, I understand what those folks are looking for, and the scientific data is not that they would typically expect, and that is the challenge for the CBD side.”
Groff also stated that his company has considerable long-term value in the cannabis drug market, especially in the medical field.
“We’ve tried to carve out a niche that plays our strengths from the medical side,” Groff explained. “We think that ultimately we need a lot more data. We’ve come at it with this approach where CBD is the entry point into cannabis exploration and other uses of cannabinoids.”
Jay Hartenbach, CEO of the CBD brand Medterra is optimistic. He believes that the CBD market will especially begin to show daily consumer growth and higher demand for complex CBD products.
According to Hartenbach, Medterra has seen a shift. Tin agents account for most of Medterra’s sales, and Hartenbach reports that sales have fallen from 85% of sales to 45% of sales (or about 47%). However, due to the decline in tin agents’ sales, the sales of relatively mainstream products (such as CBD capsules and gummies) have steadily increased.
“I think you’re going to see as more and more mainstream consumers come into CBD,” he said, “that trend continue or potentially accelerate,” adding that The other thing we’re starting to see is that consumers are starting to demand a lot more than just CBD.”
This article is issued by New Frontier Data.