CBD stands for Cannabidiol, which is a component of cannabis which according to research can have several health benefits for its users. CBD has demonstrated preliminary efficacy for a range of physical and mental health care problems (Shannon, Lewis and Lee, 2019).
Additionally, it has been reported that CBD may be able to treat addiction through reduced activation of the amygdala during negative emotional processing and has been found to reduce heroin-seeking behaviour, likely through its modulation of dopamine and serotonin (Ren et al., 2009)
Another component of cannabis is THC (Tetrahydrocannabinol). This is the part that is psychoactive and gives you a ‘high’. THC attaches directly to ECS receptors, called CB1 and CB2 receptors, and this direct attachment causes that tell-tale feeling of being high
It is THC in concentration levels of 0.2% which here in the UK is illegal, however, All legal cannabis-derived product — such as CBD oil, with a THC concentration of under 0.2% is legal in the eyes of UK Law
In my studies I came across 2 types of CBD: Full-spectrum CBD & CBD isolate,
Full-spectrum CBD not only contains other cannabinoids found in the source material but compounds known as terpenes, which are responsible for creating the flavour profile, aroma and specific effects of the plant.
CBD isolate, as the name suggests, is a concentrate that only contains CBD and no other cannabinoids or terpenes. While the purity of CBD isolate might sound desirable, there is some evidence to suggest that full-spectrum CBD promotes an “entourage effect;” that is, the compounds in a full-spectrum hemp extract work together to promote more significant effects.
Regulation
Cannabis is listed as a Class B drug under the Misuse of Drugs Act in the UK, but CBD is not listed as a controlled substance under this act.
The rules for THC limits in CBD products are not explicit which is probably the reason for the confusion in the industry. However, we can get some clarity from the cannabis and controlled drug laws including Misuse of Drugs Act 1971, 2001 and 2010. These laws lay down the conditions for which THC is allowed. Under the Misuse of Drugs Regulations 2001, ‘exempt product’ status allows for under certain conditions the presence of no more than 1 mg of THC per pack in any given CBD product
Growing
To note, hemp cultivation is legal in the UK as long as a license and permission from the UK Home Office has been granted. If you were interested in new hemp cultivation licenses cost £580, whereas a license renewal costs £326. Only seeds that have been EU-approved and contain less than 0.2%THC will be allowed to be planted. Also, a Disclosure and Baring Service (DBS) must be undertaken to check for eligibility.
Selling
We are seeing an increase in CBD in what the European Commission describes as ‘novel food’ which is defined as “a food that had not been consumed to a significant degree by humans in the EU before 15 May 1997, when the first Regulation on novel food came into force”
Examples of CBD foods in the scope of novel food regulations:
- CBD oils, capsules & oral sprays
- CBD gummies, mints & other sweets
- CBD infused tea, coffee, beer and soft drinks
- CBD snacks including energy bars
In layman’s term what this breaks down into is the following:
- Drops under your tongue
- Water-soluble CBD
- Creams to rub onto skin
As of 31st March 2021, all producers need to comply with novel food regulation and are required to submit a novel food application before marketing.
Also, businesses need to verify that the products they sell contain no THC (or ‘not detected’) using an accredited lab running an accredited THC test with a limit of detection at 0.01% or lower.
It’s also important to be aware of Medicines and Healthcare products Regulatory Agency (MHRA) regulations. CBD products are considered a food supplement by the MHRA, which means companies cannot make any health claims. These laws are quite strict, meaning that even citing the results of medical research on CBD can be interpreted as a claim that your product can cure or treat a disease or symptom. These rules apply to both CBD product labels and advertisements.
BD oil obtained from the plant might contain other cannabinoids and compounds found in the source plant.
What’s next?
I believe we will see an increase in CBD companies being set up and scaling here in the UK, many will focus on novel food products with some acquiring licenses which will them to grow hemp.
Market research commissioned by the Centre for Medicinal Cannabis (CMC) currently values the CBD market at £300m a year and if growth continues at the current rate, they claim it will be worth almost £1bn per year by the year 2025 — the equivalent of the entire UK herbal supplement market today. This is a 45% growth rate, which compares to soft drinks at just 3%, and tobacco at a mere 1.2%.
As many as 6 million Brits have tried a CBD product and the industry is projected to continue its rapid growth, reaching £1 billion by 2025.
For consumers with veteran and novice what they will experience is an abundance of supply which will allow them to experience CBD products for an affordable price until a monopoly or oligopoly is formed in this space.
Already CBD brands are positioning themselves as premium brands to allow them to make higher margins. The food who I have spoken to have plans of selling to a large multinational in 2–5 years when there is greater market adoption and one of the players in the food and berg industry who historically move slowly are looking to clammer and make their dent into the CBD market (the acquisition of Innocent by Coca-Cola pops to mind).
Medicinal
I think the next big surge is an increase in medical cannabis. In October 2018 the government legalised some cannabis-based medicinal products (CBMPs), giving specialist doctors the power to prescribe them to patients if they think the patient could benefit from the treatment. However, despite the change in law, it is still very difficult for UK specialist doctors to prescribe CBMPs.
Private prescriptions are more easily available from specialist centres, but at a substantial cost to the patient. Those who may benefit from CBMPs, such as the families of children with treatment-resistant epilepsy, must either raise hundreds or thousands of pounds every month to pay for private prescriptions or risk criminal sanctions for bringing in the medication from abroad illegally. For context, in January 2019, Lezley Gibson, 55, was arrested for possession and cultivation of 10 baby cannabis plants which she was growing to treat the symptoms of multiple sclerosis — it costs her over £1,000 each month and is unaffordable long-term [3].
Groups are emerging to study the drug and its potential impact on public health and tax revenues. Tory MP Crispin Blunt, calls for “UK drug policy to truly protect young people, deliver better health and social outcomes for families and communities, and reduce drug-related harms”.
Bridge Farm has a Home Office licence to grow high-THC cannabis for medical tests. Only 12 such licences have been awarded by the Government. napped up by a US-based private equity fund for $81m (£62m), in a move first reported by The Telegraph. It operates a two million sq ft glasshouse facility in Spalding where it aims to start producing hemp for use in
Legalisation?
The task for CBD brands and in the future medical cannabis lobbiers is to remove the stigma from the drug and highlight its benefits in a palatable way to the UK consumers. The interesting point on this topic is this is a battle American States are already facing and with many trends, they originate in the US and find themselves here across the pond years later. For historical context, in Colorado and Washington become the first two states to legalise the recreational use of cannabis. In this case of Colorado, the stated announced it surpassed $1 billion in total cannabis-related revenue, the first state in the country to hit that milestone.
According to Scott Willis, head of research at Grizzle, per-person sales are also highest in Colorado, with people buying, on average, $280 worth of cannabis per year compared to $220 and $130 for Washington and Oregon, respectively, the second and third states to legalise weed. What is most interesting is that much of the legal marijuana market revenue, which accounts for about 3% of the state’s $30 billion budget, goes toward education, health care, literacy services and drug prevention programs.
There are many parallels with the 1920 prohibition. That prohibition cost the federal government a total of $11 billion in lost tax revenue while costing over $300 million to enforce.
This lead to a black market that was not only lucrative and violent, now the aim of legalisation is not to ensure that the black market will vanish. It is highly probable that legal cannabis will be more expensive than black-market weed and plenty of people will still go for that. The aim is that the majority of people will take the path of least resistance and legal cannabis. In addition to this The Government could make up to £3.5bn in tax revenues from the legal sale of cannabis, a 2018 study Health Poverty Action estimates if the Treasury were to tax cannabis in the same way as tobacco & almost £2bn should it have its tax set at the same level as alcohol.
There is no convincing evidence to show that criminal sanctions of drug offences and drug users reliably curb use or supply of drugs. A 2014 Home Office report concluded the contrary, that there was no “obvious relationship between the toughness of a country’s law enforcement against drug possession and levels of drug use in that country”. This current drug war disproportionately affects black and Asian people. A report launched by LSE and Release highlighted in 2009/10 there were 10 stop and searches for drugs for every 1,000 people in England and Wales. Black people were stopped and searched for drugs at 6.3 times the rate of white people, while Asian people were stopped and searched for drugs at 2.5 times the rate and those identifying as mixed-race were stopped and searched for drugs at twice the rate of white people. This is even though drug use is lower amongst black and Asian people when compared to their white counterparts.
It also found the following:
Black people caught in possession of cannabis by the Metropolitan Police are less likely to receive a cannabis warning than white people and are charged at 5 times the rate of whites.
Every year approximately 80,000 people in England and Wales are convicted or cautioned for possession of drugs. In the 15 years, 1996 to 2011, 1.2 million criminal records have been generated as a result of drug possession laws.
In conclusion, I believe we need a parliamentary commission to assess the costs and benefits of these different international approaches to drug policy, to challenge the status quo of prohibition as the only solution and to enable Parliament to determine what model might work for the UK and provide better outcomes. I believe it will be one of the following options:
1) Legalisation
(2) Decriminalisation (meaning that while the sale and possession of cannabis may remain illegal, it is regarded as a minor offence instead akin to parking in the wrong place rather than a criminal offence)
(3) Cannabis possession and sale remaining a criminal offence as it is now
As it currently stands the UK CBD market is far larger than original estimates. Commissioned by the London based Centre for Medicinal Cannabis, the findings place a £300M ($375M) value on the current UK annual consumer spending. Centre for Medicinal Cannabis indicates the market is forecasted to grow in double digits each year and will hit £1B per year by 2025. For context, the size of the UK CBD market is more than 5x larger than an estimate by the Cannabis Trades Association of 250,000 users rather than 1.3 million, a market larger than the total UK Vitamin D (£145M) and Vitamin C markets (£119M) combined. This is set to grow and expand with more incumbents entering the market and no doubt regulation tightening. Without doubt, this is an exciting time for both consumers & present and aspirating CBD entrepreneurs.
References
Shannon, S., Lewis, N. and Lee, H., 2019. Cannabidiol in Anxiety and Sleep: A Large Case Series. The Permanente Journal,.
Ren, Y., Whittard, J., Higuera-Matas, A., Morris, C. and Hurd, Y., 2009. Cannabidiol, a Nonpsychotropic Component of Cannabis, Inhibits Cue-Induced Heroin Seeking and Normalizes Discrete Mesolimbic Neuronal Disturbances. Journal of Neuroscience, 29(47), pp.14764–14769.
[3] MS Sufferer Lezley’s story — Medicinal cannabis (2019) YouTube: Conservative Drug Policy Reform Group [Online]. Available at https://www.youtube.com/watch?v=cRskH4ylN9M
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