Globally, Cannabidiol, a.k.a CBD, has witnessed vast growth in its industry, which has paved way for its acceptance in various regions. CBD is a component of the cannabis plant and can be extracted to make oils, edibles, and much more.

One of the many struggles the CBD industry has faced is the issue of legalization. Things began to change when research confirmed that using a CBd oil vape pen has health benefits. This made many nations give CBD a chance to be regulated chiefly for medical purposes.

Canada is one of such countries that has legalized CBD. This piece will shed light on the upward trend of CBD in Canada in 2022 and beyond.

The Cannabis Industry Experiences Market Growth

CBD was federally illegal until 2018 when the Farm Bill was passed. This made CBD witness its first pump. However, this didn’t blur out the challenges it faced with total legalization. From “medicinal only” use to only “0% of THC” allowed in some countries, the fight is far from won. And Canada hasn’t spared CBD from such an experience.

Regional restrictions on cannabis retail stores in Canada have hindered the industry’s growth by forcing consumers to travel significant distances to get what they want.

The decision to prohibit cannabis retail stores has only benefitted the criminal market. The good news is, that authorities expect the number of prohibited CBD retail stores to decline by 2022.

CBD Gaining Ground In Canada in 2022

CBD was legalized in Canada roughly in 2019. In 2020, there was back and forth on whether CBD should be legalized for recreational and medicinal purposes. In 2022, there’s uproar against CBD’s use for recreational purposes has significantly declined.

CBD’s upward trend in Canada is due to its medicinal and health benefits. The Canadian Health Food Association (CHFA) reported roughly two years after legalization that the CBD market could grow to $2 billion if regulations favored CBD as a health product. It is predicted that this number will continue to rise at a rate of 7% per year, which would be beneficial to the economy.

How Regulations Affect the CBD Industry in Canada

Traditional cannabis and industrial hemp are distinguished in the Cannabis Act.

Some industrial hemp plants from licensed industrial hemp growers could be lawfully sold in Canada under the Industrial Hemp Regulations. There are presently no clear laws or guidelines regarding the manufacture and sale of CBD products produced from this particular hemp source.

This is a crucial point to keep in mind. By 2023, Health Canada is expected to update the Cannabis Act to include a complete view of hemp-derived CBD. Industry speculation is that Canada will follow the US and parts of Europe and regulate hemp CBD as a natural health supplement (rather than a recreational drug).

Finally, 2022 Might Be a Better Year For The Canadian Cannabis Industry

The cannabis industry in Canada had a challenging year in 2021, and limited partnerships (LPs) were put under a lot of stress. Licensed cannabis retailers in Canada are likewise trending lower than in 2020.

In 2022 and beyond, there’s likelihood the federal cannabis reform in the United States will benefit Canadian CBD companies considerably from a prospective regulatory shift. As it evolves, the industry will continue to see partnerships and consolidation, with companies coming together to streamline and play to their strengths.

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