Cashing in on the CBD craze: What you should know

(This is an abridged version of a story that appears in the September issue of Marijuana Business Magazine.)

(This story has been updated to correct the THC-threshold set by the DEA.)

If it seems you’re seeing CBD everywhere these days, you are.

CBD products are being sold at grocery stores, convenience stores and chiropractic offices. The letters are splashed across storefronts even in the most cannabis-averse jurisdictions – such as Kansas and South Carolina.

CBD also is grabbing headlines: In a landmark decision, the U.S. Food and Drug Administration in June approved a naturally derived CBD drug to treat two kinds of epilepsy, and the Drug Enforcement Administration followed that on Sept. 27 by removing CBD with THC below 0.1% from Schedule 1.

Unlike THC, cannabis’ most famous cannabinoid, CBD doesn’t intoxicate users but offers a tantalizing array of health benefits. It’s a proven anti-inflammatory agent and can bind to the body’s cannabinoid receptors to induce feelings of calm and relieve pain.

Moreover, CBD offers much less regulatory and tax baggage than THC-laden marijuana – particularly if it’s derived from hemp. Products containing CBD can be sold across state lines, for example, and are available in non-marijuana markets.

And, in the case of hemp, growers are free of seed-to-sale tracking requirements and the onerous 280E section of the federal tax code.

Throw in growing consumer interest in all things CBD, and it’s no surprise the market is exploding.

“It’s kind of a movement,” Dr. Priyanka Sharma, owner of Colorado-based CBD company Kazmira, said of the burgeoning market.

“It’s like everybody wants to use CBD – from elderly people who have arthritis to young people who want to vape and want a recreational way to relax. It’s transcending all age groups.”

But navigating the CBD market has its own complexities, particularly if you’re coming from the marijuana industry.

Selling CBD products, for starters, requires a different approach than marijuana retailing. Federal laws governing CBD are confusing, and the legal landscape is changing rapidly.

Moreover, a boom in CBD products has fanned worries that the market may be overheating.

Marijuana Business Magazine gathered information companies will need to capitalize on the current CBD boom.

Click here to learn more about:

  • The emerging CBD market.
  • How to get started.
  • CBD’s advantages over marijuana.
  • Potential legal hurdles.

Click these links to get additional insights on:

CBD’s medical potential

Breakdown of hemp-derived CBD products in the U.S. 

Emerging retail opportunities for CBD

Marketing CBD to athletes

CBD’s growing acceptance by seniors

2 comments on “Cashing in on the CBD craze: What you should know
  1. Eric Geisterfer on

    “What this does not do is legalize or change the status of CBD oil products,” DEA spokesperson Rusty Payne told NBC affiliate WTHR. “As of right now, any other CBD product other than Epidiolex remains a Schedule I controlled substance, so it’s still illegal under federal law.”

    “While CBD currently is still Schedule I, with our limited resources marijuana has not been our highest priority,” a DEA spokesperson said after the arrest. “It is not a priority like opioids or synthetics, which are killing people.”

    Reply
  2. sabina neal on

    I have given hemp oil capsules to so many people and had amazing stories from them. Fibromyalgia pain greatly reduced after 20 years. Blood pressure dropped 15 points from another. Less migraines from another. I no longer take glucosamine chondroitin for arthritis as that problem has disappeared. Better sleep for nearly all. Pretty much seems like a miracle plant.

    Reply

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