According to Bridge Market Research data, the European cannabidiol (CBD) market is booming, with an impressive CAGR of 26.7% expected between 2022 and 2029.
This unprecedented growth presents exciting opportunities for businesses to tap into this rapidly expanding market.
Will it emerge as a leader in worldwide CBD adoption? Or will other countries, such as the United States, take the lead? This article explores and answers those questions to analyze whether European markets are ready to embrace CBD products.
What are the prospects for CBD products in European markets?
The prospects for CBD products in Europe are extremely promising. Growth forecasts suggest that Cannabis Pharmaceuticals will account for 67% of global revenue, medical cannabis for 47%, and the CBD market for 32%.
As such, businesses now face a unique opportunity to capitalize on the considerable potential of these European markets. With signs indicating steady growth and increasing acceptance of this therapeutic substance, it is likely we will see a surge of investment activity reach its peak in the coming years. Market-savvy entrepreneurs should take care not to miss out on such an attractive opportunity. Here are three reasons why that's the case.
Favorable Legislation
In 2020, a judge at the CJEU ruled that CBD is not a narcotic drug for legal classification purposes.
This significant decision paved the way for the use of hemp terpenes, CBD oil, and other cannabis products in food and beverage, cosmetics, and health and wellness industries.
Across Europe, CBD is regulated differently by different countries. But the general trend is progressive and shifting towards allowing the use of CBD across a wide range of products.
Increasing Investment
The European CBD market is also seeing increased investment. More than €118 million has been invested in cannabis startups across the European Union (EU). As a result, European CBD companies have the funding they need to develop innovative products to drive the industry forward.
This level of investment is the main reason analysts predict the European CBD market will overtake the U.S. in the near future.
Strong Growth Statistics
Recent strong growth statistics signal that consumer demand for CBD products is exceptionally high.
This indicates that there are still plenty of opportunities for further growth in this area, suggesting that it is reasonable to expect record-breaking results from this industry's future development.
What Challenges May European Companies Face While Embracing CBD?
European markets may be ready to embrace CBD products, but it may be challenging for them to do so.
Here are three challenges companies involved with the CBD industry could encounter as the future progresses.
Varied Legislation Across Europe
One of the biggest challenges of selling CBD products in the EU is the inconsistency of legislation across different countries.
Although the general trend around CBD is a progressive approach, there can be different requirements for product packaging, marketing, and ingredients on a country-by-country basis.
This may become less of an issue as the industry evolves. But it will force European companies to become very familiar with legislation across multiple jurisdictions in the short term.
Finding Reliable, High-Quality CBD Providers
The foundation of high-quality CBD Oil or CBD isolates products is CBD that is produced under strict manufacturing standards for food & supplements, namely certified GMP Food Grade.
European companies must find reliable partners that can produce enough CBD at lab-tested standards to meet product specifications & legal requirements. A credible facility should provide certificates on analysis (CoA). MSDS, PDS, to ensure the products are advertised on the label can deliver this consistently from batch to batch and with each order.
Fortunately, as the industry grows and develops, finding a professional end-to-end GMP Certified manufacturer with superior quality products is possible. Companies like Sequoya help European companies source the CBD their products need and may be an option for your supplement or wellness business.
Standing Out From Other Companies That Are Also Embracing CBD
Finally, as the European CBD market becomes more competitive, it will become increasingly challenging to stand out from other businesses targeting the same niche.
Differences like the source of a company's CBD and its quality could become more important when this happens. Several factors, such as product packaging and marketing, will also become increasingly influential as the market matures.
In a Nutshell
With the European CBD Oils market expected to grow exponentially in the coming years, now is the time for large businesses in supplements, wellness & pharmacy segments to get involved.
Sequoya is here to help you navigate the White Label CBD and supplements landscape, offering one of the most advanced CBD facilities in Europe, custom formulations for new CBD white-label product manufacturing, and one of the most knowledgeable staff in producing industry standardization and the legal aspects of launching CBD products. If you're looking for a producer that's an authority on the subject to lead you through the stages, contact Sequoya Biotechnologies today. We'll work with you to customize a CBD product line that's tailor-made for your business & your target group.
