The Parliament of Japan has recently passed bills to legalize the usage of medical cannabis. The upper house has approved of this change and it will allow the usage of cannabis-based medical products in the country as has been reported by South China Morning Post. On the other hand, more than 50 new startups have emerged in India in the last three years in the CBD and Hemp-based nutraceuticals segment, according to the Pan India Medical Cannabis and Hemp Association (PIMCHA) which is a Mumbai-based trade association established in 2021 representing legal medical cannabis and hemp businesses. Driven by several other changing market dynamics, the Asia-Pacific Cannabidiol (CBD) Oil Market is expected to reach USD 1755.34 million by 2029, registering a CAGR of 33.56% until 2029. Extensive growth in the usage of CBD and hemp derivatives for the production of nutraceuticals and wellness products have been observed over the past years and the market for related products is currently registering a CAGR of 18.2%.
“Every industry has its challenges and opportunities, but I believe the CBD industry is in a unique — and pivotal — position. As a substance that was federally illegal before the passage of the 2018 Farm Bill, hemp-derived cannabinoids with no more than 0.3% THC still face a regulatory grey area. This ambiguity creates a host of novel challenges in financing, marketing, and producing products. But simultaneously, the industry and market are growing incredibly fast”, mentioned Mike Sill, CEO & Co-founder, Sunday Scaries.
The growth for these products is being influenced by a number of factors. These not only include health benefits beyond basic nutrition, but also the growing acceptance of CBD nutraceuticals by businesses and consumers.
Research has proved that CBD products have shown positive effects for the regulation of physical pain by interacting with receptors in the endocannabinoid system. They have also been found have provide relief to anxiety and stress by interacting with the serotonin receptors in the brain. People suffering from insomnia or poor quality of sleep are also able to use CBD-based products to improve these disorders. Several products have also emerged in the market for the treatment of diseases like epilepsy and multiple sclerosis.
To give an example, a complete range of products by India Hemp Organics is being widely recommended by medical practitioners which have helped consumers with pain, anxiety, and sleeping disorders.
With the growing popularity of CBD and Hemp-based products, the regulatory compliances around them have also been subject to dynamic changes. We have witnessed legalization decisions being taken or under process in several countries across the world. Many new regulatory authorities have also been established to look over the compliance requirements for businesses in this industry.
In this regard, the U.S. Food and Drug Administration (FDA) has been active in its involvement in regulation of CBD products. CBD which is a derivative of hemp is no more under the classification of controlled substances. This has created considerable pressure on FDA for maintenance and regulation of products like food supplements, additives, and drugs in which CBD is used as raw material. Epidiolex, a medicine for the treatment of epilepsy has been the only FDA-approved drug in this segment. The approval processes for various nutraceuticals in this domain are underway.
Consumers at large are now aware of the several health benefits that can be availed from CBD and hemp-based products. This market is gradually gaining momentum as people have started seeking out for alternative holistic approaches towards wellness. Information about the advantages of CBD is being proliferated through various educational resources that include websites, blogs, social media platforms and podcasts. These have helped consumers in gaining knowledge about the products and in what ways can they use them in order to get the required results. The increase in the number of retail and e-commerce businesses in this segment has also immensely helped in increasing consumer awareness. An increasing amount of customer testimonials and reviews are being posted over the internet and various social media platforms that is helping people eliminate the trust factor associated with the usage of these products.
To give an example, Charlotte's Web is a company that is involved in the production of hemp-derived CBD products, including oils, capsules, and topicals. They are popular for providing high-quality products and commitment to education, providing resources on their website to help consumers understand how CBD works and what benefits can be availed from them.
In spite of positive momentum, it is worth mentioning that research on the long-term effects and efficacy of CBD is still under process, and regulatory frameworks may continue to evolve with changing trends of this market. Consumers should exercise caution, do thorough research, and consult with healthcare professionals prior to the incorporation of CBD or hemp-based products into their wellness routines.
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