The European cannabidiol (CBD) market is booming. Thanks to preferable legislation, sheer market size of Europe’s 750m pop. and relatively steady consumer wealth the CBD wellness industry is making serious headway. According to Bridge Market Research data, the European cannabidiol (CBD) market is booming, with an impressive CAGR of 26.7% expected between 2022 and 2029. This is true across major European sectors, dietary supplements, nutraceuticals, cosmetics, pharmaceuticals and even food thanks to one European company innovating with hemp terpenes. Demand for CBD private label & white label CBD contract manufacturing is doubling from quarter to quarter.
This unprecedented growth presents exciting opportunities for businesses to tap into this rapidly expanding market. As consumers turn to natural methods instead of traditional medicine, businesses gain traction and capitalize on their ROI by promoting more complex formulations of CBD oil formulas mixed with vitamins and dietary supplements.
Europe’s population size, progressive thinking, high spending on supplements and crucially legislative progress around CBD & cannabis provide a combination fostering the fastest growth among the world markets across 2023 to 2030.
As new CBD products are embraced by consumers across all relevant retail sectors, this fuels the almost exponential proliferation of innovative CBD products by an increasing list of well established brands in supplements, nutraceuticals and cosmetics with major distribution capacity. And this drive for Europe’s markets comes from companies across Europe’s markets; as well as, many opportunistic companies outside of Europe.
While CBD is legal in Europe, it’s also regulated which means it does come with strict regulations and standards around products and their manufacturing standards. Supplements brands, CBD products brands from outside of Europe need to consider the patchwork of legal interpretations between EU countries, weigh the options of importing into Europe or working with a European contract manufacturer.
CBD is finding its place among mainstream products
As CBD moves from niche to mainstream, consumer groups segments from classic dietary supplements and those seeking CBD brand products are already overlapping. As CBD products proliferate across product categories, CBD and other non-psychoactive cannabinoids (incl. CBN, CBG to name a few) gain legitimacy among herbal supplements that are already mainstream.
This growth is occurring in mainstream consumer products like cosmetics, in dietary supplements and in medicines and pharmaceuticals. What partially driving broader acceptance is cannabidiol’s use for example among popular mainstream herbal medicines.
Will Europe emerge as a leader in worldwide CBD adoption? Or will other countries, such as the United States, take the lead? This article explores and answers those questions to analyze whether European markets are ready to embrace CBD products.
What are the prospects for CBD products in European markets?
The prospects for CBD products in Europe are extremely promising. Growth forecasts suggest that Cannabis Pharmaceuticals will account for 67% of global revenue, medical cannabis for 47% and the CBD market for 32%.
As such, businesses now face a unique opportunity to capitalize on the considerable potential of these European markets. With signs indicating steady growth and increasing acceptance of this therapeutic substance, it is likely we will see a surge of investment activity reach its peak in the coming years. Market-savvy entrepreneurs should take care not to miss out on such an attractive opportunity. Here are three reasons why that’s the case.
In 2020, a judge at the CJEU ruled that CBD is not a narcotic drug for legal classification purposes. This significant decision paves the way for the use of hemp terpenes, CBD oil, and other cannabis products in food and beverage, cosmetics, and health and wellness industries.
Nevertheless, Europe’s individual countries’ governments interpret the laws independently forming a patchwork of laws and regulations across the European landscape. While this seems normal for European brands, this is where an American, Canadian or Asia company looking to penetrate the EU markets decides to work with local contract manufacturers that help plan product rollout across markets.
Even with the pain of navigating through differences between countries, the opportunity is substantial with the trends progressive and shifting towards allowing the use of CBD across a wide range of products and retail sectors.
The European CBD market is also seeing increased investment. More than €118 million has been invested in cannabis startups across the European Union (EU). As a result, European CBD companies have the funding they need to develop innovative products to drive the industry forward.
In addition, with improved legislation and increased recognition of CBD among mainstream retail sectors many established European brands are moving ahead with launching new CBD products. These established brands have the distribution network across Europe, product development infrastructure and brand recognition to drive substantial growth.
This level of investment across CBD startups and established mainstream brands is the main reason analysts predict the European CBD market will overtake the U.S. in the near future.
Strong Growth Statistics
Recent strong growth statistics signal that consumer demand for CBD products is exceptionally high. This indicates that there are still plenty of opportunities for further growth in this area, suggesting that it is reasonable to expect record-breaking results from this industry’s future development.
What Challenges May European Companies Face While Embracing CBD?
European markets may be ready to embrace CBD products, but it may be challenging for them to do so as governments continue to update regulations and companies adjust their compliance requirements. Here are three challenges companies involved with the CBD industry could encounter as the future progresses.
Varied Legislation Across Europe
One of the biggest challenges of selling CBD products in the EU is the inconsistency of legislation across different countries. European countries may interpret laws differently resulting in either more stringent requirements or more liberal than their neighbours. Although the general trend around CBD is a progressive approach, there can be different requirements for product manufacturing, packaging, marketing, and the use of ingredients on a country-by-country basis.
This may become less of an issue as the industry evolves. But it will force European companies to become very familiar with legislation across multiple jurisdictions in the short term. Again, this is an aspect tha European companies may find common and those outside of Europe may find cumbersome without a local partner in Europe.
It’s also worth keeping in mind that CBD is still new and regulations are constantly evolving independently in each country and independently for each retail sector.
CBD Brands need to embrace standards & regulations
As the CBD industry rises from a niche grey market to mainstream serious reform needs to occur. A Forbes article reports that “Nearly 60% Of CBD Products Are Mislabeled, A New Study Finds, With Some Containing Heavy Metals“. On the most part these are products from the remnants of a grey market. However, if the CBD industry is to grow it will need established and legitimate brands to pave the way forward, launching CBD products in the same standards that any legitimate FMCG product must stand up to.
The Essentials of Finding An Experienced & Reliable Contract Manufacturer
Whether a company planning to launch CBD products is in Europe or abroad there are several factors leading to the need to work with an established CBD private label contract manufacturer.
For starters manufacturing CBD (cannabidiol) in itself required specialized equipment and most importantly special permits for processing hemp biomass. To harness the cannabidiol (CBD) a manufacturer needs to process tons of hemp biomass using an extraction machines which extract all other cannabinoids, including the psychoactive cannabinoid THC. While the final product may never include THC, that compound is still present during manufacturing in highly concentrated amounts.
Processing hemp biomass into CBD requires a manufacturer to have a commercial THC & narcotics permit for legal operation. Not having one doesn’t only risk closing the manufacturer but it’s clients.
As CBD is adopted into mainstream, only a select few companies have complex know-how to manufacture under GMP & ISO standards while holding the essential commercial THC & narcotics permits to legally process hemp biomass into ingredients and final products.
For example early on Sequoya acquired a commercial THC & narcotics permit from the Polish National Pharmaceutical Council (or Chief Pharmaceutical Inspectorate)
Since CBD is being used in a diversified array of sectors and products, a contract manufacturer needs to be able to produce refined cannabinoids in a variety of forms. This includes CBD Isolate which is one of the most versatile forms with applications from supplements, foods & beverages, cosmetics and pharmaceuticals. CBD Oils are one of the more common forms as they are used to make CBD Tinctures. These variations are described in more detail below.
Whatever the form that CBD comes in, products that are planned for retail distribution chains will need to come from a facility that is more compliant than the average herbal supplement manufacturer.
As retail chains consider CBD brands and products they will expect the same quality & compliance standards as for all products on shelves – usually with extract scrutiny on compliance to THC or manufacturing standards. CBD products will have to be manufactured under strict standards, GMP and ISO certified.
All that said companies seeking a reliable contract manufacturing partner for CBD private label products must ensure they find a manufacturer with a quality assurance / quality control department to ensure they can analise during manufacturing and know exactly what they are producing for clients, and ensure the products are as advertised on the label can deliver this consistently from batch to batch and with each order.
There’s really nearly no margin for error with these compounds and cannabinoid based products. As the CBD industry evolves it will have no choice but to adopt strict industry standards.
Many companies outside of Europe quickly see the financial, logistical and compliance benefits of working with a local contract manufacturer in Europe. A European contract manufacturer will streamline product supply and all the related compliance aspects.
Fortunately, Sequoya Biotechnologies has built a fully GMP & ISO compliant facility operated by professionals. Our company has 4 years under its belt making CBD products for 260 clients in 24 countries worldwide. This includes everything from Full Spectrum CBD Oils, Broad Spectrum CBD & CBD Isolate based Oils for markets with zero tolerance for THC. Working with major clients in 24 markets means careful discussion around their compliance for product registration and distribution; as well as, manufacturing consistency with scaling volumes.
Full Spectrum CBD Oil
This Full Spectrum CBD Oil variant delivers the full range of naturally occurring cannabinoids, terpenes, and flavonoids found within hemp plants. CBD Full Spectrum Oil, is the richest form of CBD products a consumer or patient can obtain as it contains the Full Spectrum of cannabinoids, flavonoids and terpenoids naturally occurring in the hemp & cannabis plant (included CBC cannabichromene, CBG Cannabigerol, CBDV cannabidivarin).
Because the essence of Full Spectrum Oil is harnessing the full natural cannabinoid profile of the hemp and cannabis plant, capturing these compounds from the plant is absolutely paramount. Therefore our team has developed an extraction method that consistently captures 97% of cannabinoids. This process is absolutely crucial to deliver Europe’s most entirely full spectrum CBD oil.
Beyond extraction, all Sequoya hemp oils undergo triple filtration for maximum product clarity, purity and stability, and all products are quality tested 6 to 8 times delivering precise profile specification & consistency from batch to batch.
Our facility is committed to delivering a full and natural cannabinoid profile and produce our Full Spectrum CBD oil using only natural plant cannabinoids. Our manufacturing process does not cut corners by using isolated cannabinoids. The result is a natural and rich cannabinoid profile that is especially effective for patients with neurological disorders.
Businesses looking to develop unique, specialized product lines typically opt to enrich the product with herbal supplement additions like herbal supplements, along with vitamins, and flavors. Sequoya’s Full Spectrum CBD oil is offered in various concentration levels ranging from 3% to 30%. In addition, they offer 10ml, 20ml, and 30ml options for bottle sizes.
Full Spectrum CBD Oil Legal but not welcome by authorities
With noting that while this product may also be the most challenging to register and sell in Europe due to it’s THC content usually being at near the legal limits in European markets. While still technically legal government
Broad Spectrum CBD Oils
Sequoya’s Broad Spectrum CBD Oils are similar to their Full Spectrum CBD Oils as they contain all of a rich profile of the naturally occurring compounds found within hemp plants. However, Broad Spectrum CBD Oils are further refined during extraction to reduce THC levels to <0.05%. These oils are becoming increasingly popular in Fast Moving Consumer Goods (FMCG) distribution markets as they alleviate issues when shipping products internationally. Broad Spectrum CBD Oils can also be formulated with flavors, vitamins, and herbal supplements to create specialized brands.
PureCBD + Oil
Pure CBD + Oil is Sequoya’s product consisting of pharma grade pure 99% CBD isolate mixed with a base carrier of hemp seed oil or MCT coconut oil. Our company produces the CBD Isolate, an isolated cannabidiol in powder form, on site under strict manufacturing standards delivering the purest compound to comply with the strictest pharmaceutical requirements. CBD Isolate is homogenized with the base carrier to deliver pure clarity of product and stability as Sequoya’s signature PureCBD+Oil product.
Our PureCBD product formula is based on the purest form of CBD as an Isolated compound, and has zero (0%) THC. Due to it’s pure form and lack of THC, this product is typically used by companies planning distribution in regions with zero tolerance for the psychoactive cannabinoid THC or for use in pharmaceutical applications and pharmacy chains.
We encourage you to explore your options for new products, excellent quality and assured consistency by contact our consultants, it all starts with an email at Sequoya’s contact page.
CBD Isolate is cannabidiol highly purified isolated to 98% or 99% purity. Cannabinoid Isolates are highly versatile across industries, come in fine white powder form, are completely odorless and crystal white colour and prove to be a stable compound. Many well known companies use CBD isolate, from cosmetics companies, supplement brands to pharmaceutical companies such as Jazz Pharmaceuticals as a basis for their successful Epidiolex drug.
Our company produces the CBD Isolate, an isolated cannabidiol in powder form, on site under strict manufacturing standards delivering the purest compound to comply with the strictest pharmaceutical requirements. CBD Isolate is supplied wholesale to product manufacturers, EU GMP pharmaceutical companies and applied in final product manufacturing. For example in our PureCBD product, cannabidiol Isolate is specially homogenized with the base carrier to deliver pure clarity of product and stability as Sequoya’s signature PureCBD+Oil product. This product is commonly packaged in 30ml bottles, with child safety lock for sale in pharmacies.
Standing Out From Other Companies That Are Also Embracing CBD
Finally, as the European CBD market becomes more competitive, it will become increasingly challenging to stand out from other businesses targeting the same niche.
Differences like the source of a company’s CBD, its quality, specification consistency and innovative formulas will surely become more vital when this happens. Several factors, such as product packaging and marketing, will also become increasingly influential as the market matures.
Europe’s market is embracing CBD but with that come strict product and manufacturing standards. Successful companies and brands will be those that not only employ clever marketing and distribution but those that fully embrace the high standards of manufacturing, product certification.
In a Nutshell
With the European CBD Oils market expected to grow exponentially in the coming years, now is the time for businesses in supplements, sports nutrition, wellness & pharmacy segments to get involved by engaging a contract manufacturer that can help plan a winning strategy.
Sequoya is here to fully support companies navigate the white label and private label CBD and supplements landscape, offering the most advanced CBD product manufacturing capabilities from its European facility.
Whether a company is looking for a wholesale CBD supplier white label CBD products, or custom formulations for new CBD private label product manufacturing and one of the most knowledgeable staff in producing industry standardization and the legal aspects of launching CBD products. If you’re looking for a producer that’s experienced on the subject to lead you through the stages, contact Sequoya Biotechnologies today. We’ll work with you to customize a CBD product line that’s tailor-made for your business & your target group.