It was only a few short years back that insiders were arguing how the “budding” CBD industry (no pun intended) was rapidly becoming a money-making, profitable industry powerhouse. However, it hasn’t quite lived up to expectations. Interestingly enough, the market has witnessed considerable shrinkage over the past few years. Yet while the CBD market may be down, it’s far from being out. So what are the reasons behind this downswing and what does the future hold for this market?
Reasons for the slumping Market
Although cannabis is always in vogue, business owners and experts have pointed to 4 reasons behind the slumping CBD market which include, but may not be limited to:
- disappearance of below average or poor quality products
- increased consumer education
- potential stabilization of the market
- US Congress has yet to improve current circumstances
The CBD floodgates opened after the prohibition of hemp began thawing out under then President Obama when former President Trump the Farm Bill of 2018 into law. The bill legalized the growth and manufacture of hemp-based products throughout the US provided their THC content was less than 0.3%.
The impact of poor Quality Products
With the passage of the Farm Bill, we witnessed an increase in poor quality products. This may have turned potential CBD customers off. Those consumers who had the misfortune of getting their hands on these subpar products became disenchanted about using CBD products. Furthermore, the bill made it legal for manufacturers to convert hemp into several psychoactive cannabinoids such as Delta-8, hemp-derived Delta-9, and more. Consequently, they provided more of a THC experience which discouraged those individuals who were searching for CBD products only.
Can We blame the FDA as well for the weakened Market Conditions?
According to numerous insiders, the FDA (Food and Drug Administration) has played a significant role in choking the CBD market. In 2019, then-FDA Commissioner Gottlieb passed the job regulating CBD as a dietary supplement to Congress. As of this past January, Congress has done nothing about regulating it. This has adversely impacted many big retailers such as Kroger, Safeway, Walgreens, Whole Foods, and many more that want to carry CBD products but are unable to do so due to the lack of regulation.
The current consensus among CBD insiders and statistical analysts is that the market is finally starting to stabilize after the initial boom and slump periods. However, the future is still uncertain based on current economic conditions. For the time being, it’s a waiting game. To learn more, send your questions to Tank Glass at firstname.lastname@example.org. Additionally, you can browse a wide range of smoking accessories, bongs, beakers and pipes online at our website.