Globally, Cannabidiol, or CBD, has experienced significant growth, gaining acceptance across various regions. As a component of the cannabis plant, it is extracted for oils, edibles, and more.

The CBD industry has grappled with legalization challenges. Positive shifts occurred as research confirmed the health benefits of CBD oil, leading many nations to regulate it primarily for medical purposes. Moreover, the rising popularity of Delta 8 gummies has added diversity to the expanding landscape of CBD products.

Canada stands out as a country that has embraced CBD legalization. This piece will illuminate the rising trajectory of CBD in Canada 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. Despite initial setbacks, authorities anticipate a decline in the number of prohibited CBD retail stores, offering a glimmer of hope for the industry’s future.

CBD Gaining Ground In Canada

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 recent years, there’s been a decline in uproar against CBD’s use for recreational purposes.

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. This positive trajectory is expected to persist, with a projected annual growth rate of 7%, promising continued economic benefits. As attitudes shift, CBD continues to carve out a significant and accepted space in the Canadian market.

a black man wearing a cap at a cannabis farm checking the cannabis plants

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. Health Canada is expected to update the Cannabis Act, providing a comprehensive framework for hemp-derived CBD by 2023. Industry speculation suggests that Canada may align with the US and parts of Europe, regulating hemp CBD as a natural health supplement rather than a recreational drug.

Anticipating a Brighter Future for the Canadian Cannabis Industry

The cannabis industry in Canada faced significant challenges in 2021, with limited partnerships (LPs) experiencing heightened stress. Licensed cannabis retailers in Canada are also showing a decline compared to the figures seen in 2020.

Looking ahead, there’s a potential for federal cannabis reform in the United States to significantly benefit Canadian CBD companies through an anticipated regulatory shift. As the industry evolves, partnerships and consolidation are expected to persist, as companies join forces to streamline operations and leverage their strengths. The changing regulatory landscape holds the promise of positive developments for the Canadian cannabis industry.

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