One of the most exhilarating parts of working in public relations is the ability to closely monitor trending news stories. Since December 2018’s Farm Bill announcement, the cannabinoid (CBD) oil industry has been buzzing with new products, stories, and quite a few questions on its benefit to consumers. Here at Fort Lauderdale- and Aspen-based public relations agency Durée & Company, we wanted to share some key facts about the industry’s growth and importance in today’s marketplace.
For those new to this topic, cannabinoid (CBD) oil is known for its non psycho-active effects (which means one will not get high like with CBD’s counterpart tetrahydrocannabinol or THC). The effects are derived from the non-intoxicating compounds found in the hemp plant and are commonly used to promote wellness. To learn more about this cultivator, review our CBD: Yes, It’s Legal – and It’s Booming! blog post for additional resources.
Estimated CBD Industry Growth & Value:
- Business Insider is reporting that Wall Street is estimating the CBD industry could be worth $16 billion by 2025.
- It is expected to generate over $300 million in revenue in 2019, a $100 million increase from 2018, according to Megan Olsen of the Council for Responsible Nutrition.
- Even more impressive, this year alone, the industry is slated to see a 35 percent increase in placement across retailers all over the U.S., estimating a near $30 billion in profit by 2023.
- According to Andrew Kline of Cannabis Industry, nearly 22 million Americans use CBD as a supplement. In five years, it is expected to grow 8 times that amount.
CBD is more common than people think. Not only is it accessible at favorite grocery chains or convenience stores; it is also readily available online. It is safe to say, the “green rush” is here! However, what does this mean for consumers who are unsure about the legalities of CBD, the proper dosage, and how to trust the companies producing said product?
Trust, Transparency, and Debate:
As the legality of cannabis continues to change on both the state and federal levels, there is immense pressure from the public to have standard regulations set in place. Since the passing of the Farm Bill, it opened up a wide net for the CBD industry manufacturers, but left little to no ruling on how to promote said product, any formulaic labeling system, or the proper dosage amount that should be consumed. Therefore, in February 2019, Dr. Scott Gottlieb, who at the time was the commissioner of the Food and Drug Administration (FDA), requested to host a public hearing to identify these growing concerns.
The FDA held its first-ever public hearing ― titled “Scientific Data and Information about Products Containing Cannabis or Cannabis-Derived Compounds; Public Hearing” ― on Friday, May 31, 2019. Throughout the 10-hour hearing, 140 speakers were invited to present their case in front of FDA constituents covering a multitude of topics like public safety, manufacturing, and agriculture.
Here are 5 key takeaways from the hearing:
- Create a strong regulatory framework for clear and concise labeling on products
- A better understanding of dosage use for all age groups, and particularly those looking to substitute prescribed medication with CBD
- A national standard for reputable marketing, as well as advertising
- A need for third party labs that offer impeccable manufacturing practices, so consumers know what is in the product they are consuming
- The FDA is relying heavily on scientific data and evidence to ensure the product being offered is safe for public consumption and highlights the potential risk factors
Throughout the hearing, many companies provided unique findings, including the Clean Label Project that reported >30 percent of the top CBD products on the market showed inaccurate or misleading labeling. Consumer Reports surveyed thousands of individuals and reported that 26 percent of Americans have tried CBD at least once in the past two years and more shockingly, 22 percent of those individuals have replaced their prescribed medication with CBD. While no brands can make any direct claims, many scientists examined the implications of CBD and those suffering from epilepsy, Alzheimer’s, and cerebral palsy, to name a few; to offer the FDA data and research for consideration while making their future regulations.
Individuals have until July 2, 2019 to submit their written comments to the FDA for evaluation. It is undetermined when the FDA regulations will be set forth, but the industry is urging for standards to issued immediately.
As the industry continues to expand and evolve, we are eager to learn more about the FDA regulations and how such decision making will impact the future of the cannabinoid (CBD) oil industry. Stay tuned as we continue monitoring this ever-changing industry and have a pulse in the breaking news.
About Durée & Company
Durée & Company, Inc. is an award-winning full-service public relations, marketing and special events firm with offices in Fort Lauderdale, Florida and Aspen, Colorado. The firm serves the corporate, agency and non-profit arenas for local, national and international clients focusing on public relations for real estate, public relations for restaurants, public relations for law firms, public relations for charities, public relations for healthcare, and many more. Durée & Company services include Public Relations, Social Media, Marketing, Advertising, Special Events, and Radio Promotions and Outreach.