Brightfield Group Estimates US CBD Market Growth Rate Greatly Dependent on FDA Guidance - Cannabis Business Times

2022-08-27 01:11:56 By : Ms. Jenny Wong

The report states that FDA officials’ decision on whether to regulate CBD will determine the market’s overall growth rate and its presence in various distribution channels.

Consumer insights and market intelligence firm Brightfield Group focuses on the potential effects of U.S. Food and Drug Administration (FDA) regulation of CBD—or the possible lack thereof—in a new mid-year report titled, “CBD: FDA Impact & The Path Forward.”

In 2022, Brightfield forecasts that the U.S. hemp-derived CBD market will reach $5 billion in retail sales, without FDA involvement this year, according to the report.

If the FDA begins regulating CBD by 2024, retail sales of the product could reach $11 billion in 2027, according to Brightfield, per the report. Without FDA regulations, the data company expects that 2027 figure to be more than $6 billion.

The increase in sales that Brightfield predicts if FDA guidance occurs would be “driven by accelerated growth of ingestible products like capsules and gummies as well as increased acceptance by mainstream retailers,” according to the report.

And with a 2024 start for FDA guidance, the compound annual growth rate (CAGR) for the market for the years 2022 to 2027 could reach more than 40% for mass merchandiser and club as well as grocery distribution channels, Brightfield states.

If there is no FDA regulation, Brightfield predicts the highest CAGR percentages for those years to be for mass merchandisers and club, and pharmacy, channels—but with a CAGR under 10%.

Reserved for businesses that meet the state’s social equity requirements, the licenses will be awarded to those from a pool of 41 applicants.

Officials from the Connecticut Department of Consumer Protection (DCP) released the names of 16 adult-use cannabis cultivation license applicants on July 19 that they plan to move forward with in a review process.

The announcement came a week after the 16 businesses were approved by the state’s Social Equity Council for satisfactorily meeting the requirements set forth by state law to qualify for the Disproportionately Impacted Area (DIA) cultivator license type.

Selected from a pool of 41 applications—from a one-time application period of three months— the social equity licensees must own or control at least 65% of the qualifying business, as well as meet income and residency requirements outlined in the law. Specifically, individuals who applied for the licenses must have resided in a DIA for at least five of the past 10 years or at least nine years before the age of 18.  

“These important steps mean Connecticut cannabis cultivation will be primarily operated by people from those communities identified as disproportionately impacted by the war on drugs, who qualified as social equity applicants,” Gov. Ned Lamont said in a DCP press release Tuesday.

“While there is still a lot of work to be done, we are establishing Connecticut as a leader in addressing the inequities and injustices caused by cannabis prohibition,” he said. “We are ensuring those communities most harmed have an opportunity to be leaders in this newly regulated industry.”

The DIA businesses that were approved by the Social Equity Council and have been contacted by DCP officials for next steps in the review process include:

The 16 applicants and their backers have been asked to submit additional information for a required background check to be conducted by a third-party processing company. DCP’s review of the applications is expected to take several weeks.

Once the background checks and DCP reviews are complete, the qualifying applicants can pay the appropriate fees and move forward with the next phase of licensure, including establishing their business in a DIA for operation.

“I am proud of the work the council has done to get to this point in the process while maintaining a commitment to equity and inclusion, as well as future reinvestment in the communities most harmed by the war on drugs,” said DCP Deputy Commissioner Andréa Comer, who serves as chair of the Social Equity Council. “We are excited for what comes next, and to see these businesses thrive in this new marketplace.”

Adult-use cannabis legalization was approved by the state Legislature and signed by Lamont in June 2021. Commercial retail sales are anticipated to begin at the end of 2022.

A cannabis packaging company, GreenLab Packaging, a focused division of FILAMATIC, helps businesses transition to a higher level of automated manufacturing.

BALTIMORE, MD, July 20, 2022 – PRESS RELEASE – GreenLab Packaging provides innovative, advanced, and 100% USA-made liquid filling equipment while delivering the lowest cost of ownership to its partners.

“With experience working with highly regulated verticals like pharmaceuticals, cosmetics, and contract packaging, we leverage our network and industry knowledge, coupled with FILAMATIC’s innovative design and engineering for the benefit of our customers as well as the overall cannabis industry,” notes Dorjee Tenpa, Business Development, GreenLab Packaging.

Click here to schedule a virtual/live demo.

GreenLab Packaging provides the industry with a new, formal standard as it relates to liquid packaging experience needed to help businesses achieve their growth goals – while still maintaining required levels of quality, accuracy, and product packaging repeatability.  Whether you require a tabletop filling machine, a turnkey fill-cap-label system, or a fully automated, integrated filling and capping solution, G-LAB has the experience to ensure your satisfaction is exceeded.

Liquid filling systems for your business needs:

Aaron Saxton, Director of Sales/Marketing, FILAMATIC, says, “Despite some of the familiar issues that still exist today regarding industry acceptance or legal hurdles, downstream challenges like satisfying regulatory and compliance needs, packaging criteria, quality equipment, product traceability, and reliable vendor partnerships continue to drain organizations of energy and resources. That’s how GreenLab Packaging with FILAMATIC adds value by providing a high level of manufacturing quality and reliability, allowing you to do what you do best – not spending time maintaining equipment, but developing products, meeting new customers, and growing as an organization.”

GreenLab Packaging offers standard as well as customized liquid filling solutions for the following types of cannabis products: CBD oils, tinctures, hemp oils, different Delta products, a range of terpene-rich oils and distillate recipes for cartridges and disposable pens, as well as plant-infused gels, creams, and lotions.

For more information on GreenLab Packaging liquid filling systems, please visit www.greenlabpack.com today. You can also email or call 866.258.1914 and a representative will contact you shortly.

Canapa unveils new "grow as you go" preroll automation.

July 20, 2022 – PRESS RELEASE – Canapa has announced that its JuanaRoll automated preroll machine is now available in eight different configurations to fill most every production rate need.

The JuanaRoll is the industry’s most flexible pre-roll machine with a straight-line design that allows users to expand production as needed. Customers can now start with a one-channel model and produce up to 4,000 prerolls in an eight-hour shift and then expand up to an eight-channel model or anything in between to produce up to 32,000 prerolls per eight-hour shift.

Featuring the most edge weight cell technology with 2/1000g resolution, an integrated PreCheQ check weigher and stations for compacting, tamping, twisting, trimming and crowning, this high-performance machine also includes no cone-no fill detection, a cone open camera vision system, and two digital cameras with free online support and training.

The JuanaRoll is designed for speed, accuracy, flexibility and expandability. This highly productive machine is built with a stainless-steel frame and contact parts to allow for easy cleaning and includes a user-friendly HMI for unlimited recipe setup and precise control over compaction and twisting. Real-time production reporting can be displayed at the touch of a button and data is easily exported to USB or email.

For a full-length testimonial video and to learn more about the JuanaRoll pre-roll machine, including operational videos from facilities around the world, visit www.canapasolutions.com/pre-roll-packaging-machine.

The change was approved last year and is separate from a state law that took effect July 1 to allow the sale of edibles and beverages infused with hemp-derived THC.

Big changes are coming to Minnesota’s medical cannabis program next month, when patients will be able to access edibles starting Aug. 1.

The change was approved last year, when the Minnesota Department of Health (MDH) announced that cannabis edibles and flower would be made available to the state’s patient base.

RELATED: Minnesota to Add Infused Edibles to Medical Cannabis Program

Minnesota’s dispensaries began selling flower March 1 as part of the rule change.

To access new product formats, such as flower and edibles, patients enrolled in Minnesota’s medical cannabis program must have a consultation with their dispensary, according to a local KSTP report, and patients are encouraged to set up an appointment ahead of Aug. 1 if they are interested in edible products.

“The state’s medical cannabis program continues to respond to the needs of patients, and gummies and chews may be useful options for those who may have difficulty swallowing pills or tablets, do not want to smoke medical cannabis, or don’t like the taste of other forms of medicine,” MDH Commissioner Jan Malcolm said in a statement.

The rule change regarding medical cannabis edibles is separate from a state law that took effect July 1 to allow the sale of edibles and beverages infused with hemp-derived THC.

RELATED: Cannabis Edibles and Beverages Containing Hemp-Derived THC Now Legal in Minnesota

Under that law, adults 21 and older can purchase “edible cannabinoid products” that contain a maximum of 5 milligrams of hemp-derived THC per serving and 50 milligrams per package, and a maximum of 0.3% THC by dry weight.

The sale of edibles containing CBD and delta-8 THC was already legal in Minnesota, but the new law that took effect this month allows for delta-9 THC to be used as an additive in edibles and beverages as long as it is derived from legally certified hemp.

The Minnesota Board of Pharmacy is responsible for regulating those products, while the MDH continues to oversee the state’s medical cannabis program.

Cannabis Business Times’ interactive legislative map is another tool to help cultivators quickly navigate state cannabis laws and find news relevant to their markets. View More