The opportunity for cannabidiol (CBD) sales in c-stores hangs in the balance as retailers wait to learn the fate of this growing category.
In 2018, the Agriculture Improvement Act (Farm Bill) removed hemp and hemp-derived CBD from the Controlled Substance Act. Also, since the Farm Bill has been in effect, the Food and Drug Administration (FDA) announced that CBD can’t be marketed as a food additive or dietary supplement.
However, the Farm Bill is up for renewal after five years, and CBD and other cannabinoids are again up for consideration. To help find a legal pathway for CBD and other hemp-derived cannabinoid products, Congress recently announced a Request for Information (RFI), which allowed individuals to provide input on a way to create an approach to regulate these cannabinoids through Aug. 18.
“I am waiting to see how Congress will tackle hemp-derived products in the Farm Bill. Every five years, the Farm Bill is renewed. One portion of the bill passed in 2018 reclassified and redefined cannabis sativa as hemp, making it legal to grow and sell in the U.S.,” said Leah Heise, constellation advisor to global strategy and management consultancy for Kearney. “Essentially, Congress defined a plant. They did not define what the finished products were, which created a booming industry based on ambiguity. It’s time for that ambiguity to be clarified for the public and the industry itself.”
Some experts also believe that the RFI is a great way for Congress to find a way to regulate CBD products.
“As Congress continues to deliberate reform for the 2023 Farm Bill, it’s important to hear from cannabis operators, scientists, nonprofits, industry groups and advocates,” said Madeline Grant, business development manager for Management Science Associates Inc. “It’s important that members of Congress consider all these thought-out priorities as it would be instrumental in providing clarity and safety to the cannabis industry.”
The CBD Market Today
Even though Congress and the FDA are still looking for a way to regulate CBD products, the CBD market continues to thrive.
“The market for CBD has grown rapidly since the passage of the Farm Bill. Today, the market is projected to be valued at $7.7 billion with a valuation in 2030 of $22.05 billion,” said Heise.
Heise pointed out that CBD vape products led CBD sales at convenience stores in 2022 with $74 million in sales, according to Statista.
Consumers use different cannabinoids for many reasons, including anxiety, pain relief, inflammation and even lowering blood pressure. Nonetheless, once there is a way to regulate cannabinoid products, the use of these products could potentially increase even more.
It’s important to remember that before the 2018 Farm Bill, there was no legal market for hemp-derived CBD products in the U.S. Now that the Farm Bill is in place, the CBD market is booming in most states and countries, Heise noted.
Tactics for Regulating CBD
As the FDA and Congress work together to regulate CBD amidst the Farm Bill renewal, they must consider many factors to ensure the products are used safely and correctly.
“The U.S. Hemp Roundtable, with numerous other industry-leading groups, has stated research as a major priority for the 2023 Farm Bill. There is still a lot to learn about CBD and hemp products,” Grant noted. “It is extremely important that we continue to work with scientists to research and understand these products.”
Aside from doing research on the different cannabinoids as a whole, experts suggested that Congress and the FDA should also do extensive research on the side effects and the benefits of cannabinoids.
All in all, through the renewal of the Farm Bill, experts emphasize the importance of safety and consumer access to the products.
“Any new framework should require no unsubstantiated health claims, testing for a variety of toxins, molds and additives, and should have clear labeling and packaging requirements,” said Heise. “No product should be sold without a certificate of authenticity informing the consumer of what the product contains.”