Thanks to increasing acceptance by consumers and lawmakers, cannabidiol (CBD) and tetrahydrocannabinol (THC), as well as foods and beverages containing them, are increasing in popularity.
Eleven states have now legalized marijuana recreationally and 33 allow it for medicinal use. CBD sales, now legal in some form in 46 states, reached $5.3 billion in 2021, up 15% from the previous year, and are forecast to reach $26 billion in 2026, according to cannabis research and data firm Brightfield Group.
And IBIE will feature its first central cannabis pavilion, where attendees can explore the growing world of cannabis-infused foods.
“I think the evolution of acceptance of CBD in the last four to five years has really opened people’s minds and hearts to the use of cannabis,” said Lauren Gockley, co-founder and chief innovation officer at Coda. Signature in Denver, offering cannabis infusion. chocolate, bath bombs and more. “The presence of CBD and other cannabinoids will only increase as the industry matures and more people seek alternatives to conventional prescription drugs.”
CBD is the non-psychoactive component of cannabis derived from hemp, unlike THC which provides the high cannabis is known for. The federal government defines cannabis with less than 0.3% THC as hemp and cannabis with more than 0.3% THC as marijuana.
The Agricultural Improvement Act of 2018, commonly known as the Farm Bill, legalized the use of hemp, paving the way for the widespread production of CBD. But because CBD is also an ingredient in the US Food and Drug Administration (FDA)-approved drug Epidiolex, it is not allowed in foods, beverages and dietary supplements under federal law.
This has left the CBD market in a state of limbo that poses challenges for many sellers, some of whom are in trouble with the FDA. In May, the agency sent warning letters to five companies that sell CBD and delta-8 THC products ranging from chocolate, coffee and honey to tinctures and capsules. The warning letters addressed the companies’ unapproved health claims that CBD and delta-8 products help treat various medical conditions or have other therapeutic purposes, which the FDA has called “egregious” and “superior.”
“The FDA is very concerned about the growing popularity of delta-8 THC products being sold online and in stores across the country,” said Janet Woodcock, MD, FDA’s principal deputy commissioner. “These products often include claims that they treat or alleviate side effects related to a wide variety of diseases or medical disorders, including cancer, multiple sclerosis, chronic pain, nausea and anxiety.”
Delta-8 is a cannabis compound similar to the psychoactive component of marijuana, delta-9, and has intoxicating effects according to the FDA that can be dangerous for consumers. Delta-8 is made from CBD, meaning the psychoactive drug can be sold in states where marijuana is illegal.
Drew Hathaway, senior food scientist at Caliper CBD, Commerce City, Colo., said he appreciates the FDA’s consistency in warning companies that make claims it agrees are exaggerated, including that their products can cure cancer or the coronavirus (COVID-19). But he’s not satisfied with the agency’s overall lack of action and tough stance against other health claims.
“They’ve really just left the whole CBD market in a murky, gray area on purpose, and I don’t think that was the intent of Congress when they passed the farm bill,” he said. “I think the challenge for me is that it’s very clear that cannabinoids, whether it’s CBD or THC, can help with some of these medical conditions.”
Ms Gockley agreed, saying the FDA’s refusal to regulate is preventing further research into the potential benefits of cannabis products.
“We will continue to exist in a kind of paradox where the FDA makes ‘blatant’ and ‘over the line’ claims about the ineffectiveness of cannabinoids without providing the framework for the science to prove otherwise,” he said.
When the Farm Bill was passed, many in the CBD industry were hopeful that the FDA would soon allow its widespread use. Four years later, Mr. Hathaway doesn’t think that day will come soon.
“I think there’s a pretty low chance that the FDA will clear all of this up for CBD, and so I think, ironically, the ball is back in Congress’ court,” he said. “And because of the popularity of THC and cannabis, ironically it seems more likely that Congress will legalize or at least decriminalize them before they do anything to fix the current CBD and delta-8 situation.”
Without FDA regulation or congressional legislation, the situation can best be described as a Wild West market that poses potential health risks to consumers. Mr. Hathaway said he is particularly concerned about the growing popularity of delta-8. The compound does not occur naturally in hemp and is an artificial chemical reaction, he notes, and if not properly converted from CBD, it can contain high levels of solvents and chemicals harmful to consumers. Twenty states have restricted or banned its use, and Mr. Hathaway expects that number to grow.
Because CBD and delta-8 are not federally regulated, critical bakers and snack makers entering the space vet their suppliers before purchasing. Caliper CBD, for example, sells flavored and unflavored CBD powders nationwide, testing them regularly to ensure their effectiveness.
“This is something that we’ve generally received very positive feedback from,” said Mr. Hathaway. “Having the test results, being transparent, having a supply chain traced. That’s certainly the key advice.”
CBD and other cannabis products are also a big opportunity for companies with a well-established e-commerce channel, since most people buy these items online, he continued.
“On the other hand, if you do the vast majority of your sales through traditional retailers, such as grocery stores or convenience chains, many of them, especially the big ones, are not willing to put ingestible CBD products in their shelves,” he said.
While the murky waters surrounding CBD and delta-8 are unlikely to clear up anytime soon, the cannabis-infused food and beverage industry continues to thrive. Bakers who do their homework on these products, vet their suppliers and avoid making nuisance claims can capitalize on their growth.