Cannabis is a plant that produces two main cannabinoids – CBD and tetrahydrocannabinol (THC). THC creates a psychoactive effect, whereas CBD does not. Producers can only label a product as CBD if it has 0.2% or less of THC, and at that level, it is not possible to have a psychoactive experience.
For example, cannabis is illegal for recreational use in every country that is part of the European Union. However, you can still drive a vehicle after using CBD in countries such as the UK.
The EU can still learn lessons from other countries that have tried to introduce a new product into the market. In October 2018, Canada legalised the use of cannabis for recreational use.
They aimed to regulate the use of cannabis, take it away from the black market, and have legal, professional dispensers who contribute to the economy.
The result has been a mix of successes and failures. As many producers saw the opportunity for a quick profit, they rushed their product to market, providing an inferior crop to what black market traders were already supplying.
As there were overheads to cover, the cannabis was also more expensive than an illegal supplier. The distribution network was inadequate, with not enough stores selling the product to satisfy demand.
Consumers had a choice of travelling further and paying more money for a white label product that wasn’t as good as a cheaper product that a supplier delivered to their door. Many legal producers went bust, and many investors lost considerable amounts of money.
Now that Europe sees a massive surge in demand for CBD products, they must learn from these errors. They cannot compromise quality in exchange for quantity, and their processes must be efficient to allow for affordable pricing.
Distributors must be ready and waiting for the rush from consumers because if they don’t supply them, someone else will.
These aspects can only be implemented by professional, legal, and agile companies that meet consumer needs across all these metrics. A key element for companies to understand is why consumers are showing an increased interest in CBD.
wirtten by Canzon Team