Cannabidiol, or CBD, Authorized global sales surged between 2014 and 2018, rising from $3.4 billion to $11 billion during the four years. According to MRFR, the global CBD market is predicted to grow at a massive CAGR of 125.58 percent from 2019 to 2026, reaching an astronomical revenue of 2,207.16 million by 2026. Furthermore, the Business to Business (B2B) sector dominated the market, accounting for 58.9 percent of total revenue in 2020.
Market Potential of Wholesale CBD Europe
It’s no secret that Europe is the world’s second-biggest wholesale market for hemp and CBD, after only North America. Europe also has the potential for a much more cohesive market than the United States, which is divided into states.
The European CBD market was valued at 240 million euros at the end of 2020 and is expected to be worth 1.5 billion euros by 2023. COVID-19 in Europe emphasized the need for high-quality hemp and CBD items as usage rates skyrocketed in the middle of pandemic lockdowns.
According to Prohibition Partners, the market of wholesale CBD Europe is now estimated at slightly over €2.8 billion, excluding food and drink infused with CBD and all smokable products, equal to tens of millions (between 9% and 30%) of Europeans in 2020 alone.
Europe consumes the most CBC in the world. Furthermore, Europe has 25% of the world’s hemp farming — hemp is the plant from which CBD is extracted, and CBD items are created.
The European Union is the single largest industry, with a half-billion consumers among the world’s wealthiest. It’s no wonder, then, that we believe there’s still plenty of room for expansion. The wholesale CBD Europe market forecast is favorable from our perspective, as things appear to be heading in a positive path in several of the EU’s most significant countries.
Industry Growth of the Wholesale CBD Europe
CBD’s growth has been phenomenal. The forecasts for 2020 are not far off, and we anticipate significant infrastructural progress and beneficial policy reforms in the next few years. Germany, Europe’s largest CBD consumer, sees favorable policy developments.
The proposal to boost the THC level in hemp to 0.6 percent, as in Italy, has been submitted. Italy, which is at the forefront of the European CBD business, effectively fights any adverse ruling that the government tries to impose. And France, Europe’s largest hemp grower, expects its CBD industry to reach $1 billion by 2020. No one knows the true CBD market size or how huge the CBD market is. Because the industry is still in flux, forecasting market growth is difficult. According to a recent
Brightfield Group estimates, that the CBD market in Europe will expand 400% in the next four years. And this is only when the legal side of the market is considered!
Regulation of Hemp and CBD Products in Europe
CBD regulation in Europe is currently inconsistent, with various countries governing CBD in different ways and with varying levels of law enforcement.
However, in Europe and around the world, 2020 was a tremendous year for hemp and CBD products, with the final quarter of 2020 seeing many significant international regulatory liberalization advancements:
- The European Court of Justice’s decision in the Kanavape case (http://curia.europa.eu/juris/document/document.jsf?text=&docid=233925&pageIndex=0&doclang=en&mode=lst&dir=&occ=first&part=1&cid=2651706) confirmed that CBD extracted from the complete hemp plant (including flowers and leaves) is not a narcotic substance under European law.
- Following a European Court judgment, the European Commission ruled that Cannabidiol (CBD) should not be classed as a drug under the 1961 United Nations Single Convention on Narcotic Drugs. As a result, CBD can be classified as food if the other requirements of Regulation (EC) No 178/2002 are met.
- Following a review of a series of WHO recommendations on cannabis and its derivatives, the CND agreed to eliminate cannabis from Schedule IV of the 1961 Single Convention on Narcotic Drugs, where it was listed alongside heroin and was recognized to have little to no therapeutic purposes.
Furthermore, in response to a request from the European Industrial Hemp Association, the Europe DG Grow decided to add Cannabidiol – derived from cannabis extract, tincture, or resin – to the Europe Cosmetic ingredient database. This implies that pure naturally derived CBD can now be authorized to be used in cosmetics in the EU.
CBD is a Great Business Opportunity If Approached Properly
The CBD business has unrivaled potential growth. Hemp CBD products are multiplying at an alarming rate, particularly after the passage of the 2018 Farm Bill. You are not alone if you wish to start a CBD business. For several years, it has been monitored that the market for hemp and CBD products is shifting away from flower products and toward more processed extracts and isolates. Because of the necessity for precise dosing and specialized formulations, wholesale CBD oils and extracts are becoming increasingly popular in Europe. CBD topicals, such as CBD balm, are in high demand.
State Of Mind Labs provides vital insights into the European wholesale CBD industry to our B2B clients, enabling thorough e-commerce business development. We offer a wide range of wholesale CBD products all over the world. Feel free to contact us!
