Regulation set to bring “fundamental shift” to CBD industry

07 Jul 2022 --- As the cannabinoid (CBD) space proliferates amid consumer demands ranging from immunity to mood, industry is simultaneously observing a rise of alternatives. Companies are eager to experiment with different formats, as R&D aims to drive innovation forward.

NutritionInsight speaks to Gencor, DSM, TTS Pharma, Kadenwood and the European Food Safety Authority (EFSA) on the latest trends, challenges and technological developments.

“Palmitoylethanolamide (PEA) is gaining a lot of traction in recent years due to its ability to influence the endocannabinoid system, specifically on anandamide, which can promote analgesic and anxiolytic properties. It also has potent anti-inflammatory and immuno-modulatory properties,” says Mariko Hill, global innovation manager at Gencor.

PEA is an alternative to CBD that offers similar benefits and does not have the same regulatory process.

“Thus, it is proven beneficial for multiple end-benefits such as joint pain, exercise recovery and immunity,” says Hill. She adds that there is a lack of belief in a trend shift in the industry for CBD and alternatives, as “establishments have already been built and various benefits have been confirmed.”

Trend shifts in CBD?Forecasts in trends for CBD and alternatives differ among industry members.
Kadenwood identifies topicality in CBD products as the major trend: “Because ingestibles are still not sold in major retailers and there are challenges to advertising and promoting ingestible CBD. Therefore, larger CBD companies are prioritizing topical products.”

“We do believe there will be a fundamental shift in the CBD industry once there is clarity and direction about the status of CBD and how the US Food and Drug Administration (FDA) categorizes it,” Kadenwood adds.

Hill believes companies will leverage opportunities by experimenting with different formats. “The industry may see more incorporation of such products in more unique supplement formats such as direct-to-mouth stick packs and effervescents.”

She adds that CBD has started appearing more frequently in F&B, and alternatives are seeing similar trends such as PEA in drinks and gummies. PEA is lipophilic and thus has challenges with dispersion in water.

“CBD and CBD alternatives are typically lipophilic in nature (i.e. 'fat-loving'). This means that it clumps up and agglomerates when in contact with water, limiting the absorption and ability to be incorporated into broader formats beyond capsules and tablets,” says Hill.

“I see synthetics predominantly in pharmaceutical uses whereas when using CBD as a wellness ingredient, consumers often prefer a botanical source and want to know where their product originates from,” says Mark Tucker, CEO, TTS Pharma.

“They want to understand its provenance and journey into its finished package and I believe synthetic options will have a tough passage along this consumer-led pathway, especially if labeling regulations require each type of product to be declared,” Tucker adds.

Different consumer targets
Hill explains there are two main groups of consumers. “Older individuals aged above 50 who want to manage pain and stay independent, as well as young adults aged 18-30 who want to stay proactive about their health and well-being.” 

Additionally, those who look to manage sleep disturbance, mood, recovery and joint pain may turn to CBD alternatives, especially for the PEA ingredient, she adds.

Penny Antonopoulos, director of dietary supplements in health, nutrition and care, DSM North America, says that 72% of consumers are below 44 years old, and are typically based in the US, looking for solutions to support health concerns like stress, mood and sleep.

“Now, almost 65% of individuals in the US say they are familiar with the ingredient and one-third of American adults report using CBD products. What is also promising is that, of those that have already EFSA has not yet classified CBD as a novel food due to insufficient data.used CBD products, satisfaction is high – 94% reported finding them effective, while 82% would ‘definitely or probably’ repurchase based on their experiences to date,” Antonopoulos adds.

“There is no specific type of consumer that is more important than another, but greater general awareness of CBD benefits leads to a steady uptick in inquiries across most demographics,” says Tucker. 

Kadenwood refers to their target group as anyone striving for personal betterment and continued growth or overcoming a physical setback. 

Alternatives to CBD
Tucker mentions that “alternative natural remedies will always have an incidence in the market, but they must be comparable in cost and benefit to persuade loyal CBD users to switch away.” Previously reported on is the rising demand for alternatives to CBD.

“Substantial clinical studies for CBD and other cannabinoids are ongoing around the world that will grow the evidence database behind some of the claims currently made, and over time, these are expected to cement existing consumer confidence and attract those who have been previously skeptical,” says Tucker.

“For that matter, Gencor has developed a cold-water dispersible PEA with superior absorption for brands to formulate PEA products in innovative formats. This allows brands to follow trends of the CBD industry while keeping consumers happy and healthy.”

Challenges for the industry
The European Food and Safety Authority (EFSA) explains there is insufficient data on the effect of CBD on several organs such as the liver, gastrointestinal tract, endocrine system, nervous system and psychological well-being. 

They highlight that animal studies show significant adverse effects, especially regarding reproduction.

“It is important to determine if these effects are also seen in humans. It is a normal part of the novel food assessment process for the clock to be stopped for data or clarifications to be requested from applicants. EFSA has nine months to complete its risk assessments of novel foods. This excludes the time taken by applicants to provide missing data or clarifications,” an EFSA spokesperson underscores.

“In recent increases in cost of living prices, people are becoming more sensitive to value and in the absence of a fully regulated market, poor quality products and their supply chains are affecting consumer confidence as they search for information they can trust,“ says Tucker.Cold-water dispersibility and track and trace systems are some upcoming technological innovations in CBD.

“EFSA has not yet completed a safety assessment of cannabidiol-related novel food. We have identified many data gaps on health effects that need filling before the pending evaluations can go ahead,” EFSA says.

The role of technology
Australian-based Pharmako Biotechnologies has developed a patented delivery technology.

“LipiSperse can help enhance the absorption and cold-water dispersibility of lipophilic powders. It has been “proven to have 1.75 times more absorption compared to standard PEA,” Hill notes. 

Due to its ability to be cold-water dispersible, Levagen+ has also been incorporated into various formats such as effervescent, RTM powders, beverages, gummies and more.”

“Production and extraction of CBD, especially as a bulk ingredient, is constantly evolving, and we are continually improving our processes and leading innovation in many ways. We have a large production facility where we do the extraction, solvent recovery, decarboxylation, distillation, proprietary processing and formulation,” Kadenwood says.

The company mentioned they “design and fabricate new equipment”, conducting R&D and putting them into “the very forefront of innovation,” to supply and produce CBD efficiently and economically.

Tucker mentions another aspect of technology for CBD, namely track and trace systems. “It allows full transparency of cannabinoid ingredients, allowing everyone along the supply chain (from grower to consumer) and the regulators access to key quality and custody data.”

By Beatrice Wihlander