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Industry Overview

Cannabis Industry Overview

Modified Date: December 23, 2019
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For decades, the hemp industry has been listed as a controlled substance by the Federal Government. Essentially, equating hemp and CBD oil along with marijuana and other intoxicating substances. Prohibition of hemp all started with the Marihuana Tax Act of 1937. This was one of the first actions taken against the industry as it greatly reduced consumer access to the product. Later, leading to the passage of the Controlled Substances Act in 1970. In short, this act served as a replacement for the Marihuana Tax Act of 1937. Ultimately, placing hemp as a controlled substance. 

Regulatory Reform

Thankfully, under the 2018 Farm Bill, hemp is again considered an agricultural product. Hence, opening the floodgates for both research and development. These newly rolled back regulations will not only impact hemp, but CBD and other cannabinoids as well. Finally, CBD oil will be studied now like never before. With the marketplace opening up and twenty-first century technology at our disposal, there is no telling what is yet to be discovered! The medicinal value of CBD has outstanding healing properties that help alleviate inflammation, pain, anxiety, epilepsy, insomnia and much more. The potency levels and dosages vary with differing symptoms, but the results have already been proven effective. 

Impact

Now on American soil, the most common form of CBD will be extracted from the hemp plant. Typically, being from the males of the cannabis sativa strain, which contains THC traces of 0.3% or lower. This is the commonly accepted definition outlined by the federal government to legally grow hemp plants. The insignificant amount of THC has been selectively bred by growers over the years. In a more real-world sense, similar to how dog breeders operate to select desired traits for pet owners. However, individual states have adopted their own doctrine for THC potency levels. From this, some states have legalized cannabis on the recreational level completely. Although, a majority of states still adhere to the federal guidelines listed above. 

CBD Beverage Market

In regard to emerging cannabis products, the market for CBD infused beverages poses great potential for success. However, there is a mountain of legal complications that hinder the industry from taking off. Technically, Federal jurisdiction falls under the Alcohol and Tobacco Tax Trade Bureau. From this, individual distilleries must apply for the permit to concoct such combinations. For example, Fat Dog Spirits in Tampa, Florida, reported how the licensing approval alone takes about a year and a half to complete from start to finish. So, an overnight startup cannabis brewing company is probably not ideal. Furthermore, bartending without pre-approved bottles is illegal. Essentially meaning that in any dignified establishment, adding separate doses of CBD to alcoholic beverages is unlawful. On the bright side, mixologists get a green light for virgin cocktails with cannabis. Reports by the Chicago Tribune state that, “the CBD beverage market has unofficially adopted a 25-30 milligram standard serving size.” This is in step with most average recommended oil tincture dosages found online as well.

CBD Edibles Market

Besides just beverages, there are also CBD edibles breaking in the market as well. For example, CBD gummies have become popular for alternative consumption to vapors or tinctures. They look like candy and have different flavors, cuts, and sizes. Ranging from the CBD sour worms to rainbow belts or even the conventional gummies shape. Just like the oil, CBD gummies are consumables that boast a range of therapeutic benefits. These analgesic properties extend from anxiety relief to reduced pain. Furthermore, many products can be synthesized from the hemp plants to treat insomnia, stress, acute pain and epilepsy. Additionally, hemp research has led to the holistic treatment of various cancers, HIV, immune-deficiency symptoms and even nausea. However, the most advisable gummies to consume are strictly CBD based. Otherwise, users may accidentally consume tetrahydrocannabinol. This is the psychoactive cannabinoid that leaves users feeling “high.” Thankfully, CBD gummies do not contain any psychoactive qualities. Although, there are other therapeutic cannabis compounds. For instance, terpenes can improve the performance of CBD on the body. Thus, strengthening the overall effects.

Overall

CBD gummies and beverages present us with a whole range of uses. While it is true that the top shelf gummies can be used in the treatment of a number of diseases, there is just not enough scientific evidence to make gummies a household staple yet. Overall, the industry itself is so new that regulating agencies often lag behind on consumption laws. After further research and testing, there will be more certainty going forward. For now, it’s best to explore with cautious optimism. At least until the CBD scene moves away from the fringe into mainstream America.

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