The CBD industry is one of the fastest growing business sectors in the world.
This industry is currently predicted to grow a further 20% to $61 billion by 2025. According to the Cannabis Trades Association, the number of CBD oil users doubled just two years ago. The question is how to maximise the opportunities and avoid the pitfalls.
With the European cannabidiol market currently worth around £480m, the UK commands the biggest share at around £110m. The CBD industry is threatening to reach pivotal levels in the UK.
By 2025, it is estimated that the CBD market will be worth £938m, making it equal to the entire UK herbal supplement market.
This data shows CBD’s popularity in the UK has reached a level of market penetration that is here to stay, with consumers spanning all classes and age groups and products emerging in all retail sectors from vaping to pet care.
CBD is legal in the UK and increasingly across the globe, most countries are now onboard, full list below* The legal position is that the THC content must be less than 0.2%.
With major condition charities in the UK now starting to publish educational information in response to demand, this means the UK’s CBD market has strong prospects in healthcare, with increasing willingness among people in the UK to try CBD products and spend large amounts of money on a regular wellness routine that integrates CBD.
The British CBD market can expect a series of fundamental developments in the next three years according to the Centre for Medicinal Cannabis. These include greater competition and imports into the UK and increased product diversification, along with the issues around traceability and provenance. It’s a good time to secure your supply chain, capitalise on emerging markets and suppliers to be one step ahead in the industry.
48 countries have come online with new CBD legislation, with another nine expected in 2020.
We are seeing growing demand for import and export of products in countries such as Israel, South Africa, Japan and South Korea.
In Asia they are pushing for the lead in international CBD cosmetics. Canna is antibacterial and antimicrobial – so using CBD products in skincare could eliminate acne and other skin irritant issues. However, the challenge here is that Japan and South Korea have a very strict zero THC expectation for their imports. So education and precise testing will play a huge role in products clearing customs to keep this supply chain going smoothly.
In the US hemp products can be shipped legally between states, however there are a few destination restrictions – domestic addresses are ok, but military and some international destinations are not.
Shipping within this industry is not easy to navigate – regulations, tariffs and even shipping codes seem to change daily when dealing with hundreds of countries.
The Import / export of Hemp and CBD is a complicated process that should not be taken lightly. Before engaging in this business, be sure to get advice in order to navigate national and international law. With Hemp and CBD not being legal in all countries, your trade routes can impact the legality of your product.
If you are looking to expand your business overseas, we recommend speaking to a reputable freight forwarding partner for the smooth shipping and supply chain solutions.
Our experienced team are used to handling these kind of shipments and can navigate complicated customs procedures. For more information contact one of the team on +44 (0)1622 237979 or email us sales@tps-global.com
*As of 2019, CBD products are legal in the following countries, typically as long as they’re extracted from industrial hemp and generally contain less than 0.2 percent THC:
Antilles
Argentina
Austria
Belgium
Belize
Bulgaria
Canada
Chile
China
Colombia
Costa Rica
Croatia
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Georgia
Germany
Greece
Guam
Guatemala
Hong Kong
Hungary
Iceland
India
Ireland
Italy
Latvia
Lithuania
Luxembourg
Malta
Mexico
Netherlands
New Zealand
Norway
Paraguay
Peru
Poland
Portugal
Republic of Slovenia
Romania
Slovakia
South Africa
South Korea
Sweden
Switzerland
United Kingdom
Uruguay
Virgin Islands
CBD products are banned in the following countries:
United Arab Emirates
Russia
Malaysia
Australia is a unique case due to its changing laws. Though the Australian government legalized cannabis for medical reasons in 2016 and reclassified CBD from a prohibited drug to being legal by prescription only, CBD is still highly regulated and available to only a limited number of people by medical prescription without exception.