Despite the legislator’s reluctance to uphold the legality of cannabidiol, the French CBD market continues to demonstrate the health of iron. If demand doesn’t weaken, industry professionals fear a surprise embargo that will threaten thousands of jobs.
CBD: The Chronicle of Legal Uncertainty
The safety of cannabidiol or CBD has been demonstrated by numerous studies, even leading the Scientific Committee of the World Health Organization (WHO) to conclude that the molecule is in its pure state” Does not appear to have any potential for abuse, nor is it harmful to health “. Today, cannabidiol is not on the WHO’s list of “classified substances”. Therefore cannabidiol is not subject to strict international controls, whether for production, supply or transportation.
Since mid-2010, some countries have also relaxed regulations for drugs containing cannabidiol, such as Australia, Canada, the United States, the United Kingdom, and Switzerland.
In France, CBD-based products with a THC (psychotropic molecule) level of no more than 0.2% can be freely and legally marketed. On the other hand, this legal situation is temporary for the time being, putting the sector on borrowed time and depriving thousands of professionals from visibility in a very short period of time. Recall that CBD flowers and leaves were banned for sale under a ministerial decree on December 31, 2021, before this decision was taken down and temporarily suspended by the State Council. Confiscated by professionals in the sector, the judge in Chambers actually found this restriction to be inconsistent and unfair with respect to the factual elements on the harmlessness of CBD to public health.
The area has therefore been suspended by the final decision of the State Council, a decision expected in the coming months. In the meantime, CBD professionals remain involved in the day-to-day operational management of their businesses:
- Most investment projects have been put on hold in 2021. These include opening new physical stores, diversifying the products offered, recruiting vendors, etc.
- Banks and other credit institutions were already very reluctant to finance projects related to CBD products. Legal uncertainty probably won’t help matters.
CBD market is booming despite legal status
Despite legal ups and downs, the market for cannabidiol products is thriving. Globally, it is one of the rare sectors of activity that is registering double-digit growth rates. According to an estimate by Grand View Research, the CBD market is expected to grow by 21.2% every year by 2028, doubling its turnover every five years.
France is experiencing the same dynamic. Thus, the number of physical stores specializing in the sale of CBD-based products has grown from 400 in 2020 to over 2,000 in 2022, a 500% increase. Concentrated in major urban centres, these specialty stores are experiencing a certain enthusiasm from customers who seek the relaxing, anti-inflammatory and analgesic properties of this non-psychotropic and non-addictive molecule. Websites that offer CBD online complement the offer and expand the regional network of physical stores.
According to data from Media LSA Conso, there are more than 7 million consumers of CBD products in France, that is, more than 10% of the population. This demand is also supported by a large supply, with France monopolizing more than half of European hemp production (17,900 ha), far ahead of Italy and the Netherlands.
CBD, Rehabilitated by Science?
Despite authorities’ reluctance to uphold the legality of CBD-based products, the Ministry of Solidarity and Health has launched a massive experiment with medical cannabis with more than 3,000 patients across France. Launched in March 2021, the operation should evaluate the effectiveness of CBD and THC in pain relief, treatment of some forms of drug-resistant epilepsy, and palliative care. The health minister, Olivier Veran, also attended the first prescription of medical CBD to a Claremont patient suffering from epilepsy.