CBD’s “fickle” market dynamics pushes up demand for alternatives, experts detail

22 Dec 2021 --- The maturation of the cannabidiol (CBD) market has led to a diversified array of applications for this functional ingredient, while experts are observing a rising demand for alternative compounds that similarly aid in relaxation. 

NutritionInsight speaks to specialists in the field who discuss the rising market appeal for novel CBD formats and alternatives such as cannabigerol (CBG) and Delta-8 tetrahydrocannabinol (THC).

The market for CBD alternatives
The market for CBD is fickle and consumer tastes shift quickly, Maggie McNamara, marketing director at Gencor, points out. With all the complexities in regulation surrounding the ingredient’s commercial viability, demand for alternatives is well pronounced.

For the past two years the CBD boom has fizzled out, so some CBD manufacturers have pivoted to Delta-8 THC.“For the past two years the CBD boom has fizzled out, so some CBD manufacturers have pivoted to Delta-8 THC, the hemp-derived cannabinoid that’s nearly identical to the ‘real’ THC in marijuana banned under federal law,” explains McNamara.

“Delta-8 THC absolutely gets you high, but since the source product is hemp, Delta-8 products remain federally legal – and can be found in shops and stores, even gas stations and online all over the US.”

Other minor cannabinoids are generating interest as they become more accessible, such as CBG, notes Mark Tucker, CEO of cannabinoid supplier TTS Pharma. At present, however, this particular compound has even less supporting data than CBD while being more expensive.

“CBG comes from young cannabis plants because they contain higher amounts of CBG than fully developed plants. CBG, like CBD, has been used to combat pain without having the intoxicating effect of cannabinoids like THC,” says Brandon Schaefer, marketing manager at HempRise.

CBN has a slightly more mild psychoactive response than CBD but much less than THC. “CBD tends to cause a feeling of alertness rather than sluggishness, the morning after bedtime consumption,” notes Schaefer.

Tucker adds that other phytoactive compounds – with similar therapeutic effects and claims but without the same regulatory issues – have been experiencing the “tailcoat effect” of riding the momentum of CBD’s success, such as in the case of curcumin.

Novel formats and applications
Looking ahead, Tucker forecasts that water soluble tinctures with improved bioavailability could potentially replace conventional CBD oils, which often have bitter off-notes.

“We believe water soluble technology will be the next big step-in developing products with higher bioavailability in both the F&B and cosmetics – but the intellectual property landscape requires firms to tread carefully and ensure they have the right technology partners who understand the regulatory pathway to a sustainable business model,” details Tucker.

CBD nanoemulsion, such as that supplied by HempRise, concentrates CBD using non-artificial emulsifiers and is versatile across bottled beverages, personal care items and other applications where water compatibility is critical.

“It can be added as an independent ingredient at RTD beverage bottling stage or be customarily blended with other functional ingredients to be used in concentrated beverage or fountain syrup,” details Schaefer.

Market research by TTS Pharma highlights that consumer interest has been trending toward gummies as a preferred format, versus soft gels.

“Chewing gum is an excellent media for combining CBD with other nutrients and minerals like vitamin D, zinc and magnesium,” says Tucker. “CBD is also being added to specialist sports products such as gels and shakes.”

Future R&D is likely to show that complementary effects can be achieved when CBD is combined with specific terpenes or flavonoids.Tucker anticipates that more extensive R&D is likely to show that complementary effects can be achieved when CBD is combined with specific terpenes or flavonoids, while offering a wider knowledge base about how they interact with the endocannabinoid system.

Navigating murky regulatory policy
The regulatory status of CBD and hemp as a food ingredient is a recent development in several markets around the world. In some cases, there are specific regulations and guidelines with clear conditions of use of CBD in food and food supplements. 

“In other cases, safety assessments still need to be performed before products containing hemp-derived CBD ingredients can be legally marketed. In many other countries, however, CBD ingredients are either not permitted or are highly restricted for use in foods and beverages,” says McNamara at Gencor.

“Concerns about CBD as an ingredient relate to food safety and public health, mainly due to the presence of THC. There are also concerns around the marketing of CBD products, whose claimed health benefits have to be scientifically substantiated before obtaining an authorized health claim.”

While federal law in the US allows CBD products that contain 0.3% of THC or less, each state has its own policies, with most allowing CBD in some form but many restricting its use in food or beverages – and a few outlawing it entirely. 

“Understanding the potential for CBD growth and which markets are open for business is essential for any brand looking to move into this space,” stresses McNamara.

Last August, German supermarket Lidl was forced to recall all of its hemp products from European shelves and issue a warning to consumers over allegedly high levels of the psychoactive compound THC.

The regulatory status of CBD and hemp as a food ingredient is a recent development in several markets around the world.UK leads the charge in legalization
The UK currently leads the way in regards to establishing regulated pathways to market under the Novel Foods directive and the EU’s Cosmetics Directive. However, effective regulations require policing and enforcement upon non-compliant suppliers, Tucker stresses.

“The lack of enforcement in both sectors is currently allowing all of the non-compliant supply chains to continue their practice, which helps neither the consumer nor the legitimate operators and suppresses the market growth.”

“Pending lawsuits will likely delay any decision making by the UK regulator until court positions are clear, which only serves the interests of those non-compliant supply chains.”

In the EU, CBD is regulated under novel food legislation overseen by the European Commission. As any novel food requires approval before being placed on the market, this same rule applies to CBD. 

The Court of Justice of the European Union (CJEU) has ruled that CBD products produced legally in one member state are legal to market in all the other of the Member States. “The CJEU decision marked a turning point for the European CBD industry, considering it presented a clear sign that the CBD will not be treated as a drug but as food,” says McNamara.

Scientific research on the use of cannabinoids like CBD for cancer treatment and pain relief is anticipated to continue attracting interest, as regulation surrounding this contested ingredient gradually becomes more clarified in the coming years.

By Benjamin Ferrer

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