As demand for cannabis and cannabidiol (CBD) products is growing at a swift rate in Europe, a European Union (EU) administrative body has recommended that CBD products be regulated as narcotics.
The European Commission (EC), the executive branch of the EU, recently suspended applications for CBD inclusion in its Novel Food Catalogue, stating CBD and other extracts from hemp flowers would be better regulated as narcotics under the United Nations (U.N.) Single Convention on Narcotics of 1961.
Should the “preliminary conclusion” stand, the implications for Europe’s CBD market cannot be overstated. The ruling would not only make it impossible for Europe’s CBD market to exist in its current form, but also constrict cannabinoid research and innovation throughout the continent.
Global cannabis industry business analyst New Frontier Data, in partnership with Deep Nature Project and Mile High Labs, recently released the third volume of its targeted European CBD consumer series, “EU CBD Consumer Report Series: Market Size & Demand.”
Leveraging New Frontier Data’s proprietary survey of over 3,000 European CBD consumers across 17 European nations and insight from the U.S. CBD market, the report projects the EU CBD market will grow at a CAGR of 10.4% to reach €13.6 billion by 2025 without regulatory changes.
“Despite existing regulatory hurdles, demand for CBD in Europe continues to grow quickly as consumers embrace this cannabinoid for medical and general wellness, creating opportunities for large Food & Beverage and Health & Beauty brands,” said New Frontier Data Founder and CEO Giadha A. DeCarcer. “This provisionary conclusion will likely trigger objections and may increase pressure to amend the U.N. Single Convention to remove cannabis from its prohibited classification.”
Doing so, said DeCarcer, would have implications far beyond extracts, potentially reshaping the future of higher-THC cannabis in Europe.
Other key findings include:
- Annual spending on CBD in the EU is expected to total an estimated €8.3 billion for 2020.
- Current annual CBD spending in Germany is estimated at €1.83 billion, the highest annual spending on CBD in the EU.
To download the New Frontier Data report, “EU CBD Consumer Report Series: Market Size & Demand,” visit: http://newfrontierdata.com/EUCBD3.