© 2023 MJH Life Sciences™ and Nutritional Outlook. All rights reserved.
According to its findings, 89.4% of companies test their CBD products through accredited third-party labs, demonstrating a transparent industry. Unfortunately, 43% of CBD companies in the study did not disclose extraction methods used for their products.
CBD Oracle (Tustin, CA), a cannabis review and news site, has published an analysis of 520 CBD companies, representing over 20,000 products. The study sought to uncover issues with transparency in the unregulated CBD marketplace, which can threaten consumer trust. According to a survey from Consumer Brands Association, 92% of American consumers either incorrectly assume or have no idea if CBD is federally regulated. Upon being informed that there are no federal agencies that regulate CBD products, 84% of respondents expressed concern about the safety of CBD products.
CBD Oracle’s study offers an optimistic view of the industry. According to its findings, 89.4% of companies test their CBD products through accredited third-party labs, demonstrating a transparent industry. “Despite consumer apprehension being a huge problem, our analysis suggests an industry so conscious of its regulatory shortcomings it’s taking appropriate steps to fix them,” said Alisdair Mans Cornwell, senior editor at CBD Oracle, in a statement.
Additional findings showed that 89% of companies fully disclose their hemp source and cultivation practices. Most of U.S. hemp sourced for CBD products came from Colorado (30.1%), followed by Oregon (13.4%), then Kentucky and California (tied for 5.1%). Eight percent of hemp was source from Europe, according to the study. The most popular European sources of hemp were Holland, Lithuania, Switzerland, and Spain.
When it came to the most common type of CBD products offered, the majority of companies (72%) sell some type of CBD tincture. The second most popular option sold was topical CBD, offered by 65% of the companies in the analysis. The third and fourth most popular options were capsules and gummies, sold by 42% and 40% of companies, respectively. Unfortunately, 43% of CBD companies in the study did not disclose extraction methods used for their products. Of those that did disclose extraction methods, CO2 extraction was used by 42% of CBD companies, with ethanol extraction being the second most popular method (11%).
CBD Oracle also collected data about minor cannabinoids. According to its analysis, the most popular minor cannabinoid present in the marketplace is cannabigerol (CBG), sold by 20% of the 520 companies. This was followed by cannabinol (CBN), sold by 12% of the companies, and delta-8 THC, sold by 10% of the companies. CBD Oracle expected more companies to sell delta-8 THC. It cites data from New Fronteir Data that states sales of delta-8 THC has reached $10 million across the U.S. in 2020. Despite the exponential market growth of delta-8, CBD Oracle believes that restrictions on the sale of the minor cannabinoid across 19 states is likely contributing to relatively low adoption of delta-8 by manufacturers.
More data from CBD Oracles analysis can be found here.