Green Shoots: Sowing the seeds of the new UK cannabinoid market
The economic state of the cannabinoid sector is growing impossible to ignore!
As the economy rebuilds post-Covid, and reshapes post-Brexit, the UK is at an exciting time for innovation and renewal. The recent report produced collectively from The Centre for Medicinal Cannabis and the Association for the Cannabinoid Industry, based on a submission to the Taskforce on Innovation, Growth and Regulatory Reform (TIGRR), shows how central and lucrative an opportunity a rapidly growing cannabinoid market can be.
The economic state of the cannabinoid sector is growing impossible to ignore: a survey completed in April 2021 by Public First estimated that the UK’s consumer cannabidiol (CBD) sector is now worth £690m ($1 billion), almost a third higher than the last projection (by Navigant) in 2019. This is a hugely valuable space - and it is still growing.
Almost casually, the UK has become a leader in the global cannabinoids marketplace - but to stop this billion dollar baby being strangled at birth, politicians and policymakers must embrace the potential for the UK’s leading position and deliver a regulatory and institutional framework that’s fit for purpose, while a cultural shift needs to tackle a legacy of misinformation and scepticism about the sector’s value and merit, and the motives of those engaged in it.
As we emerge from the COVID-19 pandemic and lockdown, we can all look back at the past 12 months and see how all of our lives were changed and how CBD played a part in helping many people cope. The sector was key in the wellness and mental health crisis of the lockdown as many people turned to CBD and other cannabinoid products to help with sleep, anxiety and focus as our lives changed from social outings to video calls, and a 9-5 at the office became an inability to s witch off from work on the sofa.
CBD products became the over-the-counter pandemic aid, as many health food stores grew their range of cannabinoid products, and manufacturers developed new products to make the distinctive flavoured oil more palatable; it has become easily accessible geographically, affordably, and administratively.
The evidence base to support the benefits of cannabinoids is growing but rules around health and medical claims means it is hard for producers and brands to accurately describe what their products can do. Yet anecdotal evidence of it’s wide ranging effects, and genuine word-of-mouth marketing, has driven a huge rise in sales, while reducing the stigma that has traditionally surrounded cannabinoid based products.
A lack of understanding in the general public, driven by the entrenched criminalisation of cannabis in UK culture, is a major limiting factor to certain generations reaching out for these products over traditional medications and supplements. But hearing positive stories has affirmed CBD’s place in the public’s arsenal against these pandemic-induced mental health challenges.
Whilst the value and growth of the market is exciting and encouraging for those looking to enter or expand within it, there remain limiting factors that are impacting growth and innovation. There is a distinct lack of expertise of the sector within the Home Office whose ad-hoc approach to gathering evidence and tackling the complexities of the sector are underwhelming and lack the gravitas to make a marked impact, especially the need to update the rules governing research and cultivation.
There is a significant lack of legal clarity, and whilst some progress has been made to move towards a regulated sector (for example, CBD products now being classified as Novel Foods and therefore requiring authorisation from the FSA to remain on sale in the UK), these regulatory pathways are complex, time consuming and costly for businesses to navigate.
Hence, this Green Shoots report outlines 20 recommendations that cover the need for:
Governmental and market-led deep dives into the economic and regulatory frameworks of the cannabinoid sector.
Reducing administrative barriers to scaling up businesses via hemp plant regulation reform; establishing a dedicated cannabinoids regulator; robust enforcement action against non-compliant products; and establishing quality standards and industry guidance for product labelling and exportation
Encouraging innovation and commercialisation of new technologies
A dedicated ‘centre of excellence’ for cannabinoid science in the UK.
Reducing barriers to entry, and making the UK market more dynamic and economically competitive.
The UK is a leader of an exponentially growing market, yet the full potential is far from being achieved. We need to create a compliant but dynamic UK industry to fulfil the opportunity that the health and wellness sector is presenting. We need a coherent regulatory system and the institutional structure to back that up.
The UK will then be a world leader, with an innovative, prosperous industry from which we can all benefit.