The Food and Drug Administration (FDA) is the governing body for all things food and drug-related, including additives, prescription and non-prescription medications, tobacco products and more. Supplements have remained largely unregulated by the agency, but as the cannabidiol, CBD, industry continues to grow at a rapid pace the market is calling for some guidance.
They finally issued a new update on their stance, but it wasn’t what CBD consumers or manufacturers were hoping to hear. The FDA stated consumers use extreme caution when using CBD products due to the potential to harm.
What does this mean for those investing in CBD? Any industry that experiences the type of growth CBD has experienced over such a short period is sure to peak the interested of seasoned and novice investors. The most recent update from the FDA could have the potential to scare off new and current CBD investors alike, but experts are stating this shouldn’t be the case.
Making an investment is a serious decision. You work hard for your money and should not risk losing it on a failed investment.
This is why it is necessary to invest in reputable CBD product manufacturers. When, or if, the FDA begins to provide guidance to the market the manufacturers who are already making safe and high-quality products will be more stable.
The Brightfield Group released a statement in early 2019 that CBD sales in the U.S. will reach nearly $24 billion dollars by 2023. This is an extreme amount of growth from 2018’s sales of just $600 million.
The 2018 Farm Bill is another reason the CBD industry seems stable at this point. The Bill made it legal for industrial hemp to be grown, which is where CBD is derived. While cannabis is still illegal nationwide due to its psychoactive component, THC, hemp is now legal to be grown and used in manufacturing.
It is understandable that the FDA essentially rejecting any form of support for the CBD industry would make investors nervous. As with any financial move, it shouldn’t be taken lightly or without proper education.
Reputable suppliers are those companies that follow certain protocols to ensure the safety of their products while maintaining quality. Because there is little regulation of CBD products there are many manufacturers that are producing products that contain little or no CBD, more THC than allowed (0.3% or less), and potential contaminants and toxins.
Companies that are worth investing in use third-party lab testing to ensure they are providing their consumers with the CBD content they are advertising. They will also test their products for THC content and potential contaminants. Look for companies that provide these lab results on their website.
It is always wise to seek professional advice on investing. There are a few confidence-boosting facts surrounding CBD that you should consider; market growth, the versatility of the product, and the USDA’s stance.
The growth of the CBD market, reaching over 100% annual growth over the next five years, is not a number indicating a quick rise and fall. This fact could show that the CBD industry will continue to rise at a steady rate.
CBD can be used in a wide variety of ways; gummies, vaping, capsules, topicals, pet products, and much more. The versatility of cannabidiol extract means the market is likely to continue to expand into other areas and become more concrete in the areas it already exists.
While the FDA has not gotten on board with cannabidiol, the U.S. Department of Agriculture (USDA) is a different story. They announced in October the legal growth of hemp through the U.S. Domestic Hemp Production Program. It is a part of the 2018 Farm Bill and provides a regulatory framework for hemp growth and production.
Note: The information in this article does not constitute an investment offer or recommendation