What is the current situation of CBD market in the United States? How to layout CBD industry?
The rapid development of overseas CBD attracts market attention. How about the development of us CBD market? What is the most valuable link in the industrial chain? How do American enterprises layout CBD market? We investigated pureskye, a medical marijuana company in California, and Keef brands, a beverage brand in CBD. We hope to find out the reasons why CBD is popular, the industrial chain links worthy of layout and the policy trend.
1、 Us CBD products are popular, improving mood is an important function
Among all the cannabinoids, CBD (cannabinoids) is most commonly used in medical and health care, for example, in the treatment of anxiety and depression, in the relief of stress, in the relief of pain, and in the reduction of acne. Mainstream health product retailers in North America, such as CVS health, Rite Aid, Walgreens boots alliance, etc., have widely sold CBD products in stores. The new crown epidemic is spreading around the world, and the sales of cannabinoid products in the United States and other places have increased during the epidemic, because consumers use CBD products to fight anxiety. The survey shows that 5% of American consumers say they are using over-the-counter stress relief products, and the typical product is CBD.
2、 The price of CBD falls slowly, the key is to grasp the channel and product end
With the increase of industrial marijuana cultivation and processing in the United States, CBD prices are slowly falling. Take broad-spectrum oil as an example. The current price of broad-spectrum oil with zero thc is about 4000 US dollars / kg. The price of broad-spectrum oil with THC but less than 0.3% is about 2000 US dollars / kg, which is lower than the same period last year. The decrease of CBD price is more favorable for the application of downstream products. Compared with the previous focus on the planting and construction of processing plants at the source, there may be more opportunities in terms of channels and products. From the perspective of function, the consumers who buy CBD at present are more interested in the anti-inflammatory, antibacterial and decompression effects of CBD on human body. From the perspective of channels, products need to be presented to customers and consumer groups through channels.
3、 In the future, the US policy is expected to allow the development of CBD, and regulate the management of tobacco and alcohol in the future
Once industrial marijuana is legally available at the federal level, CBD will not be classified as an illegal product. Policies need to regulate CBD within this legal scope - such as variety, purity, product form, etc. In terms of the regulation of planting industry, USDA and FDA will inspect the CBD varieties currently planted in the United States, and give the growers a 2-4-year change period. The THC content of the varieties to be planted should be less than 0.3%, otherwise it will not be allowed. In terms of the supervision of consumer goods, CBD is similar to the management of alcohol products: in terms of children's consumption of CBD, unless the child has a specific disease that needs to be treated by CBD, then CBD should not appear in children's normal food. In the future, the United States will help the United Nations health organization to make corresponding proposals and changes.
1. US CBD products are popular, and improving mood is an important function
Among all the cannabinoids, CBD (cannabinoids) is most commonly used in medicine for its lack of mental activity, such as the treatment of anxiety and depression, stress relief, pain relief, acne reduction, etc. As more and more CBD products are used to treat various diseases, the US CBD market is expected to grow at a considerable rate.
The new crown epidemic is spreading all over the world, and the sales of cannabinoid products in the United States and other places have increased during the epidemic. In the United States, compared with March last year, the comprehensive legal cannabinoid products in California and other states have seen a significant growth, with some growth rates even exceeding 100%. Because of the new outbreak, people in overseas areas were also asked to reduce outdoor activities time and increase the difficulty of purchasing cannabinoid products, so there was a phenomenon of "hoarding". A boss of a marijuana pharmacy in Washington State said that "during the crisis, people always store enough food, water, cannabinoid products, etc.".
Why do Americans increase their purchase of CBD during the outbreak? According to the census survey in the United States, the pressure felt by the public is increasing, and 5% of consumers use CBD products to fight anxiety. According to the data of census survey, 61% of American people feel "stressed" for the new crown disease. In order to combat the anxiety caused by the outbreak, 5% of American consumers said they were using over-the-counter stress relief products, a typical product is CBD.
2. Industrial chain: CBD prices are falling slowly, and the key is to grasp the channel and product end
With the increase of industrial marijuana cultivation and processing in the United States, CBD prices are slowly falling. Take broad-spectrum oil as an example. The current price of broad-spectrum oil with zero thc is about 4000 US dollars / kg. The price of broad-spectrum oil with THC but less than 0.3% is about 2000 US dollars / kg, which is lower than the same period last year.
The decrease of CBD price is more favorable for the application of downstream products. Puresky found that before practitioners paid more attention to planting at the source and building processing plants, but now they are slowly finding more opportunities in terms of channels and products. Only when the downstream products are qualitative, can they return to continue to develop the upstream industry. So the market expectation for this year and next year is that there will be more brands crowding into the entire CBD industry chain, rather than more processing plants and planting houses.
3. U.S. policy: allow CBD development and future regulatory tobacco and alcohol management
Once industrial marijuana is legally available at the federal level, CBD will not be classified as an illegal product. Policies need to regulate CBD within this legal scope - such as variety, purity, product form, etc. In the future, the policy may put forward more requirements in planting, in variety selection or breeding, and the final products will be tested to ensure that the CBD products can meet the standards.
How does the United States regulate the cultivation of CBD varieties? For CBD products, the U.S. policy requires that the THC content of industrial marijuana CBD products sold be lower than 0.3%. The U.S. Department of agriculture and the FDA will conduct a comprehensive test on the farmers who are currently planting CBD in the United States. If the THC of the variety is higher than 0.3% at the time of planting, the variety is not allowed. Now the policies issued by the U.S. Department of agriculture and FDA give growers a 2-4-year period of change. Growers need to reduce the THC content of the planted varieties within the next 2-4 years. As long as the THC content of the planted varieties is within the legal provisions, no measures will be taken against growers. However, if the THC content of the planted varieties is higher than the provisions, the government will not allow the cultivation of this variety.
How will future policies regulate consumer goods in CBD? Shaw, a partner of puresky, believes that CBD may regulate alcohol products in the future: in terms of children's consumption of CBD, unless the child has a specific disease that needs CBD treatment, CBD should not appear in children's normal food. So in the future, FDA will add more CBD to adults. If children have epilepsy or related diseases, it may give parents a choice (let children take painkillers or CBD), and CBD can directly enter products like medicine.
What is the view of who's call for CBD liberalization? Shaw said that if it is the United States and the whole Federation that is legal, the United States will definitely export to the world in addition to domestic use, so the United States will help the United Nations health organization to make corresponding proposals and changes, such as using their existing industry regulations to help the United Nations improve some bills and tell the United Nations what to do.
