The Complex Situation for the CBD Market

Last Summer, Tamarind Media launched CBD-Intel, a research resource for the CBD industry market, which provides comprehensive market and legal analysis as well as a daily news service.

Last week, the CBD research resource explained that the legal status of CBD oil “varies wildly across the globe”, and while in some countries it may be subject to strict regulations, in others it may be fully banned. In the brief report below, it offered an overview of the situation in Europe, the US and Canada:

Market openings, legal uncertainty
CBD-Intel reported recently on the Senate version of the US Farm Bill, which would have failed legalise the farming of low-THC cannabis strains at federal level. This would potentially commoditise CBD – driving down the price, while opening up market opportunities to growers and producers.

In Canada, the cannabis plant and some of its by-products, including CBD, were legalised on 17th October 2018, opening the door to a whole new market. But sale, access and possession of cannabis products – including CBD – will now be subject to a new strict regulatory framework.

CBD products will for now be regulated exactly like any other cannabis product. However, the Canadian authorities may in due course loosen the cords for “less potent” cannabis products, including CBD products.

Perils of the grey area
Meanwhile, in Europe too the outlook is varied and uncertain.
The market is blooming in Switzerland, where a great range of CBD products are offered. Vape stores there are taking a back seat and head shops taking the lead because CBD in e-liquids is prohibited in concentrations thought to have “pharmacologically active” properties. 

In neighbouring France, a variety of CBD products appeared on the market last year. However – in a clear example of the way a legal grey area can be interpreted one way by would-be businesses and another way entirely by the authorities – a number of stores have been raided by police, supposed “narcotic products” seized, and shop managers taken into custody.

Leave A Comment