The global market for cannabidiol (CBD), worth $9.3 billion in 2020, is expected to grow to $23.6 billion by 2025. With an estimated compound annual growth rate of 22.2 percent from 2019 to 2025, businesses capitalizing on CBD’s rising popularity have a bright future ahead of them.
North America continues to dominate the market, accounting for 40% of worldwide CBD market share2, although this may not be the case for much longer. With a 31 percent market share, Europe is bridging the gap and is expected to exceed North America’s regional demand.
The Valens Company is well-positioned to address the international demand for CBD as a global leader in end-to-end development and manufacturing of new cannabinoid-based products. Valens is the CBD wellness industry’s preferred partner since it provides specialized services ranging from plant processing and extraction to product creation, analytical testing, and white labeling.
CBD is legal in Europe.
In Europe, the legality of cannabis varies by country, with many only allowing medical use. Hemp-derived CBD products for recreational use have been widely legalized. However, some technically operate in a legal grey area due to differing definitions of hemp qualifies as hemp. Product quality, consistency, and regulation issues have stifled industry expansion and jeopardized consumer safety.
The CBD industry in Europe is loaded with promise, with an estimated value of €1.5 billion4 by 20235. The Court of Justice of the European Union concluded in November 20206 that CBD is not a narcotic, allowing it to be freely sold throughout the European Union. This decision has paved the way for a clearer regulatory road for the legal use of CBD, favoring enterprises that produce high-quality CBD products.
Valens is actively involved in creating wellness-focused product solutions, looking beyond the market for traditional CBD-forward cannabis products. By 2028, CBD products are expected to account for more than 0.15 percent of the total health and wellness market. Valens hopes to partner with businesses to appeal to a new generation of cannabis users who have never tried the drug before. With technological improvements and product innovation, CBD’s potential for integration into the wellness category is virtually endless.
Overview of CBD products
Imitations and false product claims stifle the market for quality-oriented businesses while legislation lags behind customer demand. Many individuals are interested in CBD, but because they are unfamiliar with the industry, they are confused about finding the ideal product for them. Consumer education and quality assurance are crucial for companies investing in high-quality, compliant CBD products.
CBD isolates and oils
The need for edible oils has hitherto dominated the CBD market. As a result of processing, there are some significant changes in the composition of different oils:
- Full-spectrum CBD: the most similar to the original material in terms of composition, this product comprises cannabinoids, flavonoids, and terpenes, and if THC is present in the starting material, it will also be present in the finished product.
- CBD oil with a broad spectrum — this type of oil is made in the same way as full-spectrum oil, but without the THC.
- Distillates of CBD: Distillates are high-potency distilled CBD that has been refined to remove flavor and odor — they are commonly used in vaporizer cartridges, edibles, and topicals.
- CBD isolates are CBD in its purest form, usually in the form of a powder or crystal.
Integrating CBD into additional products
One of the obstacles in introducing CBD oil into health products is miscibility: incorporating an oil-based ingredient into generally water-based products causes product separation. If not handled appropriately, this can result in dosage discrepancies and incorrect labeling.
Rather than addressing the challenge of mixing oil and water, Valens came up with a solution: an enlarged license to create and distribute goods based on SRSETM technology. Valens provides European partners with the capacity to convert CBD oil into a water-soluble emulsion in international markets.
