What’s New in the CBD Market:  A Closer Look at Growth and Trends

The CBD industry in the United States has seen explosive growth since the passage of the 2018 Farm Bill, which effectively legalized hemp-derived CBD products nationwide. From just over half a billion dollars in CBD product sales in 2018, sales in 2022 reached more than $1.9 billion. Estimates for the next five to ten years project the market will continue to grow at a robust pace as more people recognize the health benefits of CBD products, and pharmaceutical companies explore its medicinal applications. 

In an effort to keep up with growing demand, many businesses in the CBD industry are working hard to expand their product offerings by developing new types of products, some containing lesser-known types of cannabinoids such as CBG, CBN, and Delta-8 THC. Here are some of the trends in the CBD industry. 

CBG: The Major Minor Cannabinoid 

Of all the minor cannabinoids, CBG has seen the most significant growth in the last few years. Like CBD, CBG is non-psychoactive and has been found to have various health benefits. Where CBD has properties that can help relieve pain, reduce inflammation, improve sleep, and lower stress and anxiety, CBG has been found to stimulate appetite, and is being studied for its anti-cancer, antibiotic, and antibacterial properties.  CBG is also being considered for the treatment of conditions ranging from glaucoma and inflammatory bowel disease to Parkinson’s disease and multiple sclerosis. 

CBN: A More Effective Sleep Aid than CBD? 

CBN forms when THC begins to break down, but unlike THC, CBN has only very mild psychoactive properties. Studies into CBN show it is a powerful sedative, and proponents of CBN are also exploring its use for pain relief, and anti-inflammatory and neuroprotective properties. 

CBC: Reducing Pain and Inflammation

The more that minor cannabinoids are isolated and studied, the more it appears each cannabinoid has unique properties that make it particularly effective for specific applications that CBD is broadly known for. In the case of CBC, it has been studied for its ability to reduce pain and inflammation, and as a potential anti-cancer agent. As synthesizing minor cannabinoids becomes easier, and new strains are created through selective breeding, look for more research to be done on cannabinoids like CBC, and new products to be created. 

Delta-8 THC: Psychoactive but Legal? 

While Delta-8 THC is much less psychoactive than its more popular Delta-9 cousin, it still has some mildly psychoactive properties. However, because Delta-8 THC is typically derived from CBD extracted from the hemp plant, it is federally legal under the 2018 Farm Bill – though it may still be illegal or for medical use only in some states. 

Like many cannabinoids, it is often used to relieve pain, reduce inflammation, improve sleep quality, and for appetite stimulation. Delta-8 may also help prevent sensory overstimulation, and calm an overactive immune or nervous system. According to a 2021 survey, about half of people who take Delta-8 for medical reasons reported using it to relieve stress or chronic pain, or to treat depression, panic attacks, or bipolar disorder. Many found it was an acceptable substitute for Delta-9 THC, with fewer or more mild side effects. 

Delta-10 THC: Increased Energy and Euphoria 

One of the most recent cannabinoids to enter the market, like Delta-8, Delta-10 is typically synthesized from CBD because it is found naturally in very low quantities in cannabis plants. Not much research has been done on this cannabinoid, but anecdotally, people report mild euphoria, appetite stimulation, and increased energy and focus. It is less potent than Delta-9 or Delta-8 THC, so the effects tend to be more mild. 

Related:  5 Things You Need to Know About Liability Insurance for CBD and Hemp Products

Beverages: The Hottest Sector in the CBD Industry

While high inflation appears to be the main driving factor in the slowing growth of the CBD industry over the last two years, new beverage product offerings experienced significant growth over the last year. 

Pet Food: Dogs are Getting in on the Benefits of CBD too 

Since CBD appears to have many of the same effects on animals as it does humans, some companies are starting to make CBD products for pets – most notably in the form of dog treats. These can help reduce chronic pain and inflammation, and could also help reduce stress and anxiety. 

An Emerging Market with Expanding Insurance Needs

With more than 100 distinct types of cannabinoids that can be isolated, and a rapidly evolving regulatory landscape that can vary greatly from state to state, the growing insurance needs of the CBD industry can be both exciting and daunting. Companies in the health and nutrition sector as well as the pharmaceutical industry, will continue to test new cannabinoids and bring new products to market – and ensuring these companies have appropriate coverage for product liability and clinical trials requires having a team of experts like those at Admiral, who understand the CBD industry and the regulatory environment.  

Work With the Insurance Industry Experts in CBD

When writing liability insurance policies for a rapidly evolving industry like CBD, it helps to have an expert who understands the regulations, technology, and possible risks of exposure. Admiral Insurance Group provides that expertise to our wholesale brokers, and their retail brokers who work with businesses that grow, process, and sell hemp, CBD oil, and cannabis products. If you are a retail insurance broker, locate an Admiral wholesale partner. If you are a wholesaler, contact us about becoming a premier partner.