The European CBD market has been growing rapidly in recent years, driven by increasing consumer interest in the potential health benefits of CBD products. According to a report by the European Industrial Hemp Association, the European CBD market was valued at €318 million in 2018 and is projected to grow to €1.5 billion by 2023.
One of the main drivers of growth in the European CBD market is the increasing availability of CBD products in a wide range of forms, including oils, edibles, capsules, and topicals. This has made it more convenient for consumers to incorporate CBD into their daily routines. Additionally, a growing body of scientific research on the potential health benefits of CBD has helped to increase consumer awareness and understanding of the compound.
The EU regulation of CBD has been a key factor shaping the European market. In Europe, CBD is considered a "novel food" and the EU Novel Food Catalogue considers it as such. Since 2019, the EU has been working on a legal framework for the cultivation, production and sale of hemp-derived CBD products. This framework, called the ‘’Farm to Fork strategy’’, is set to ensure safety, quality and transparency of the products offered on the EU market.
This framework has had an impact on the European market, as companies must now comply with these regulations in order to sell their products. This has led to some companies exiting the market, but it has also ensured that the products that are available on the market are safe for consumers. Furthermore, the EU's stance is to work on a harmonized regulation, which aims to have all the member states follow the same rules, this has a positive effect of making the European market more homogenous.
The EU's approach to regulation is quite different from the approach taken in the UK, which currently has no specific regulation in place for CBD products, allowing the industry to operate in a somewhat unregulated environment. This has led to some concerns about product quality and safety, and the UK government is now looking to regulate the industry to ensure that products are safe and correctly labelled.
The US market also differs from the European one, as the FDA has only approved one CBD-based drug and also has prohibited any health claims about CBD. This lack of a federal framework for CBD has led to a variety of different regulations in different states, leading to a somewhat fragmented market.
In conclusion, the European CBD market has been growing rapidly in recent years, driven by increasing consumer interest and the availability of a wide range of products. The EU's approach to regulation, which aims to ensure safety, quality, and transparency of products, has had a positive effect on the market. It differs from the approach to the UK CBD Market and the US, which currently have less regulation and oversight, resulting in a more varied approach in product quality and safety.