A year of NPD: Innovative launches deepen CBD’s industry footprint, amid regulatory confusion

06 Dec 2019 --- Following the 2018 Farm Bill’s removal of hemp from the definition of marijuana in the Controlled Substances Act, industry has seen a boom in cannabidiol (CBD)-based product development. In 2019, the trend intensified tremendously with big and small players alike looking to explore the compound’s market potential. NutritionInsight takes a look at the stand-out NPD that bolstered the trend, as well as some exciting CBD-infused beverage innovations.

CBD products are still subject to the same laws and requirements as any other products regulated by the US Food and Drug Administration (FDA). The federal agency is focusing its attention on monitoring products making health claims that are virtually unsubstantiated. Other than that, there is no regulation that mandates a significant intervention on CBD products. Recently, it was reported that CBD will gain Novel Food status in Germany, but as of yet, nothing has been officially disclosed from the country’s policy bodies.

Innova Market Insights has also featured CBD as a trend to look out for, part of its top trends of 2020 list entry “A Star is Born.” 

The trend has also spurred some uncertainty among consumers. Research by the Grocery Manufacturers Association (GMA) found increased consumer confusion over what CBD is, what it does and whether it is safe. One in three US consumers use CBD, the study highlights, while 76 percent of CBD users assume that products are subject to federal regulations and safety oversight. The multi-billion-dollar CBD industry operates within a “disjointed, patchwork system of state regulations,” the research underscores, calling for federal agencies to implement a “uniform regulatory framework.”

Innova Market Insights has also featured CBD as a trend to look out for, part of its top trends of 2020 list entry “A Star is Born.”

NPD CBD flourishes
Despite all the above, NPD is still going strong. Delivering 20 ml CBD per serving, Nuriv’s CBD oral formulations expand upon its range of stand-alone CBD products. The offerings contain a micellized form of CBD, meaning it is water-insoluble, is absorbed quicker and comprises improved pharmacokinetics. To process CBD in its products through this patented process, Nuriv has obtained global licensing from Virun, a biotechnology company in the F&B and dietary supplement space.

Also tapping into this dynamic market is US beverage brand mood33, which launched a line of hemp-infused herbal teas that contain organic, locally grown, full-spectrum hemp extract, premium botanicals and real fruit juices. The company markets the range as “mindfully sweetened to create bliss-inducing flavors,” bringing consumers the effects of the hemp plant in an herbal iced tea drink format. Each bottle of mood33 provides 33 mg of full-spectrum hemp to support the body’s endocannabinoid system (ECS). 

Dixie Botanicals, a subsidiary of Medical Marijuana – the first-ever publicly traded cannabis company in the US and specialist in marijuana-derived nutraceutical products – released watermelon-flavored CBD gummies in response to a growing market demand for edible CBD products. Each CBD gummy offers 10 mg of the brand’s hemp-derived CBD isolate. The product is marketed as tetrahydrocannabinol (THC)-free, making it non-psychoactive.

Dutch start-up Tranz used the Anuga showfloor to underscore how it bypassed EU regulations on CBD-infused beverages to debut its potentially disruptive drink. Speaking with NutritionInsight, the company’s Co-Founder explained how its Sparkling CBD Water contains pharma-grade cannabis oil that allows it to be commercialized in Europe. 

US-based brand Good Day launched a line of CBD-infused beverages designed to keep one balanced throughout every part of the day. The range includes cold brew coffee for a boost of energy, a citrus sparkling water for mental and physical refreshment, and chamomile herbal tea for enhanced relaxation and stress release. 

CBD products are still subject to the same laws and requirements as any other products regulated by the US FDA.Holistik Wellness, a start-up health and wellness company, introduced Holistik Stir Stik. The CBD product provides the health benefits of broad-spectrum, water-soluble hemp extract powder in a convenient, easy-to-use Stir Stik delivery system that consumers can either pop open and pour or stir gradually into their favorite beverage, hot or cold. 

WeHo Bev Co., a US-based, wellness-centered beverage start-up, launched its first brand “Chaser,” a distinctive, zero-calorie, sugar-free, cocktail mixer and chaser, infused with electrolytes and CBD. As the only product of its kind on the market, Chaser effectively masks the aftertaste of alcohol, to provide drinkers with a healthier, smoother drinking experience, the company says.

Lastly, Kicco Koffie is supporting small businesses and entrepreneurs across the globe by brewing up the perfect blend of organic CBD-infused coffee and micro-loans for emerging businesses. The CBD coffee company donates US$1 for every pound of beans sold to fund microloans, supporting small businesses across the globe. 

In November, former PepsiCo Global Chief Marketing Officer, Jill Beraud, launched Sh'nnong Beverage Company. The Sh'nnong Beverage Company features Má Functional Iced Teas with CBD+ natural botanicals with a national roll-out to over 500 The Vitamin Shoppe stores. The brand’s “next-generation” plant-based beverages come in Green, Oolong or Bai Mudan Tea varieties blended with CBD+ natural botanicals to detox, focus or relax.

By Kristiana Lalou