Cannabidiol (CBD) Business Competition
Introduction
CBD has gained traction since its inception in America and other countries around the globe. CBD is derived from hemp plants and is used for various functions in several industries, and it is used as a medicine, food supplement, and for leisure. However, the business has been faced by challenges, especially its legality, as many argued, it promotes marijuana consumption. Nevertheless, it is essential for people to understand, including government agencies, the difference between hemp and marijuana plants, and the content of their products. Hemp plants have less than 0.3 % of Tetrahydrocannabinol (THC) by dry weight is regulated by the Food and Drug Administration (FDA). The CBD business development is booming as many players are gaining space in the less concentrated and regulated industries. The business is promising good returns in the next five years, but if all players comprehensively do more research to increase product range. Moreover, more regulations, laws, and industry control should be enacted to ensure products generated are safe and used according to ages required. The paper dwells on the CBD pharmaceutical industry, analyzing challenges and competition in the sector as well as ways to improve the business.
CBD in the Pharmaceutical Industry
Cannabis as medicine has been gaining interest from researches to investors as initial results are showing the market is growing exponentially. Studies and research done on the medicinal value of CBD oil have indicated that it helps in relieving chronic pain, inflammation, and treating neurodegenerative issues. The future
Industry overview: potential
The industry is offering a lucrative venture that needs many investors and players. In recent times, many people have been attracted to cannabis processing from farmers to labs and pharmacies. The medicinal value of CBD is attracting both private and public players as it has been proven CBD is being used to relieve chronic pains. As traditional pain killers are failing in relieving pains that emanates from surgical operations, cancer, migraines, and other chronic pains such as back pains, CBD has proven they can reduce such pains in a short time and consequently offer relief and reduction of anxiety.
Moreover, the CBD has provided treatment to epilepsy in children; this, however, has been used by few parents, thus with further marketing and awareness, more consumers will start trying the product. Hence this will open more doors for the FDA to legalize more drugs meant to treat seizures. World health organization (WHO) has given a holistic overview of the preclinical evidence of CBD having properties that can manage tumors, neuron-protection, severe epilepsy, hypoxia-ischemia, anxiolytic, psychosis, analgesic, inflammations, and asthmatic conditions. This offers a good chance for all players to fund more researches to prove these original scores and make the industry more marketable to doctors and patients.
Moreover, according to initial analyses and lab reports, the CBD can be used in the cosmetic industry. Dermatologist argues that due to CBD anti-inflammatory effects, it can be used to treat Acne. Also, it can cause therapeutic effects when applied on the skin hence, easing pain. More studies have shown that CBD oil has less skin pore-clogging, moisturizes dry and cracked skin, thus can be used as an anti-aging agent as it has been proven clinically. These developments offer a chance for future expansion of the company to add more products.
Anxiety is the primary factor leading to disabilities, according to WHO, hence many people tend to look for ways to minimize all alleviate nervousness they feel. In recent times, CBD cookies and other edibles have found themselves in the market, especially in regulated states such as California and Washington. They are used by people who want to relieve anxiety and general ‘GOOD FEELING.’ Moreover, some companies have been allowed to add some substantial amounts of CBD in beer, coffee, and other beverages. With clear guidelines and full support of the federal government, it offers an excellent and potential market to exploit.
Challenges facing the cannabis business
Lack of proper regulations
Despite several few countries in the world accepting controlled consumption cannabis products, the laws formulated lack the clarity of what to be consumed and by who. Moreover, since the industry is evolving in a meteorite speed, rules formulated are leaving loopholes been used by surplus investors. Some companies have been citing producing CBD oils with reduced THCs, but as evidence has shown, especially in the Netherlands, some products have been found to have elevated levels of THC against the product label ( Hazekamp, 2018). This has been the main problem faced in the industry but is being pushed by high demand for products that cause psychoactive reactions.
Moreover, there is confusion between hemp and marijuana, as companies are using either of the plants and purporting to produce CBD oils. Besides, there lack of clear guidelines for setting a cannabis lab due to different analytical methods adopted by various labs. The industry lacks standard agreeable guidelines and regulations, as well as certification rules available to be followed when one is setting the lab. This poses a significant risk in the industry as consumers are not sure who to trust, and they may lose the taste of CBD products, thus leading to failure of the whole industry.
Competition
Competition in the CBD business is intense as many players are entering the sector and innovating products. This calls for high old players in the industry to include research in their process that will help in increasing the quality of their CBD oils and adding more uses and variety. Increasing new investors are disrupting the markets as they are investing more in expanding the use of CBD oil in medicine. Some of the companies that have joined the market and posing much pressure on our company include
Verma farms are located in America, and it has been producing a wide range of products used to relieve pain, insomnia, anxiety, and stress. The company has been advertising its products as being extracted from organically grown hemp.