20 Dec 2023 --- Unclear legal frameworks in the EU and UK for cannabidiol (CBD) food and beverage products are stifling innovation and paving the way for alternatives that enjoy more favorable regulatory outlooks, industry insiders are highlighting. However, food safety authorities could yet provide the legal clarity required to stimulate NPD across CBD markets.

In its last major update, the European Commission determined that CBD can be considered a novel food ingredient. But, while assessing applications, authorities said it had become clear there are knowledge gaps that need to be addressed nclick="updateothersitehits('Articlepage','External','OtherSitelink','CBD in F&B? Global market proliferates but Europe’s regulatory roadblocks spur alternatives','CBD in F&B? Global market proliferates but Europe’s regulatory roadblocks spur alternatives','338383','https://www.efsa.europa.eu/en/efsajournal/pub/7322', 'article','CBD in F&B? Global market proliferates but Europe’s regulatory roadblocks spur alternatives');return no_reload();">before reaching a conclusion on the ingredient’s safety.

Meanwhile, the UK government has nclick="updateothersitehits('Articlepage','External','OtherSitelink','CBD in F&B? Global market proliferates but Europe’s regulatory roadblocks spur alternatives','CBD in F&B? Global market proliferates but Europe’s regulatory roadblocks spur alternatives','338383','https://www.nutritioninsight.com/news/industrys-urgent-plea-save-our-cbd-campaign-calls-on-uk-home-office-for-legal-clarity.html', 'article','CBD in F&B? Global market proliferates but Europe’s regulatory roadblocks spur alternatives');return no_reload();">answered calls to nclick="updateothersitehits('Articlepage','External','OtherSitelink','CBD in F&B? Global market proliferates but Europe’s regulatory roadblocks spur alternatives','CBD in F&B? Global market proliferates but Europe’s regulatory roadblocks spur alternatives','338383','https://www.nutritioninsight.com/news/aci-accepts-recommendations-for-first-legal-framework-of-cbd-products.html', 'article','CBD in F&B? Global market proliferates but Europe’s regulatory roadblocks spur alternatives');return no_reload();">create a legal framework for CBD products. The Association for the Cannabinoid Industry (ACI) suggests regulation is slowly taking shape in the UK and is likely to be settled by April 2024, which would clarify big questions like the limits on controlled cannabinoids.

“The UK and EU markets are at a point wher new product development is very difficult to achieve — at least in the food and beverage category. Until the UK Home Office puts a clear legal framework in place, all innovation in this area is essentially on hold,” Steve Moore, ACI’s founder, tells Nutrition Insight.

“ACI has, so far, supported 18 novel food applications covering approximately 3,000 CBD products. once market authorizations from the Food Standards Agency (FSA) can proceed and a clear legal framework from the Home Office is in place, this side of the sector can thrive.”

Ambiguity alarm bells
Globally, the emerging CBD retail market mainly comprises oils and tinctures packaged in bottles, capsules or gummies, CBD-infused beverages and topicals like lotions and creams.

Europe-based producer Reakiro wants to combine CBD with other ingredients to attract more consumers with a broader portfolio. It already offers products designed to improve sleep and relaxation, alleviate pain and boost metabolism and energy in oil, capsule, gummy and skin care formats.Innovation in CBD-boosted F&B is on hold in Europe without clearer legal frameworks, warn manufacturers.

“The wellness and nutraceutical sectors will continue to be the innovation path for Reakiro,” Mark Wright, the firm’s head of operations, tells us. “But, the stagnation and lack of leadership in EU and UK on CBD regulation severely impacts the industry.”

“The biggest challenge is the ambiguity and ever-changing commentary from authorities, which restricts investment and confuses consumers, preventing them from confidently using one of nature’s wonder products.”

Although more research on CBD benefits is becoming available, the ability to freely apply this knowledge to product innovation and the consumer information flow is limited by regulatory stagnation.

“ACI has been providing industry perspective to the UK Home Office and FSA to try to accelerate the creation of a clear, legal framework for CBD and controlled cannabinoids,” says Moore.

This month, nclick="updateothersitehits('Articlepage','External','OtherSitelink','CBD in F&B? Global market proliferates but Europe’s regulatory roadblocks spur alternatives','CBD in F&B? Global market proliferates but Europe’s regulatory roadblocks spur alternatives','338383','https://www.nutritioninsight.com/news/a-one-stop-shop-aci-launches-green-bridge-gateway-for-uk-and-eus-cbd-market.html', 'article','CBD in F&B? Global market proliferates but Europe’s regulatory roadblocks spur alternatives');return no_reload();">ACI formed Green Bridge Gateway, a coalition of Global Regulatory Services, ADSL, Shweed and US-based Chem ID. The network supports UK and EU market entry through regulatory advice, toxicology data, supply chain expertise, lab testing and “track and trace” blockchain technology.

Attention on alternatives
The CBD market’s uncertain regulatory landscape in Europe is prompting the rise of alternatives, like palmitoylethanolamide (PEA), a naturally occurring compound produced throughout the body that helps maintain physiological functions. The ingredient is available as a supplement derived from safflower oil.

Gencor’s Levagen+ product, a clinically studied PEA, offers many benefits consumers look for when evaluating CBD products, such as relief from joint discomfort, healthy sleep and exercise recovery, especially in its cold water dispersible and improved absorption form. The award-winning LipiSperse technology helps increase the bioavailability and functionality of PEA in beauty applications.CBD use in F&B products is surging in the US amid more favorable regulation.

“PEA interacts with the endocannabinoid system, but the molecule itself is not a cannabinoid, so it can offer similar benefits without CBD’s regulatory challenges for use around the world,” Chris Bailey, director of scientific affairs at Gencor, tells Nutrition Insight.

Mariko Hill, global innovations manager at Gencor, adds: “Despite CBD’s purported benefits and rise in awareness, regulations limit sales growth across different countries. To expand the market, supplements such as PEA that are accepted and legal globally would enable brands to reach more consumers worldwide.”

Meanwhile, Kasia Tate, regulatory director at ADSL, pinpoints Kava — a herb long revered for its ability to promote mental well-being — and EPA and DHA from fish oil — necessary for the proper signaling of the endocannabinoid system, promoting homeostasis of the body — as notable competitors to CBD.

CBD market dynamics
Innova Market Insights data indicates that between October 2022 and September 2023, CBD use in F&B products (including supplements) was most prominent in North America, wher 63% of launches occurred.

Compared to the EU and UK, US CBD markets are relatively relaxed, with several states, including California and New York, fully legalizing cannabis products.

In the same period, CBD ingredient use increased most in Latin America, with 46% average annual growth, the global market researcher’s data suggests.

Europe’s unestablished legal framework for CBD puts alternatives, like PEA, in a strong position.Worldwide, CBD ingredients were primarily used in supplements, with a 73% share in launches. The soft drinks category had a 21% share in launches and the fastest growth globally.

CBD ingredients were most often used in supplements with brain-mood health claims (29%) and insomnia (28%). Insomnia supplement claims also had a high growth of 24%.

This month, the One Hemp coalition nclick="updateothersitehits('Articlepage','External','OtherSitelink','CBD in F&B? Global market proliferates but Europe’s regulatory roadblocks spur alternatives','CBD in F&B? Global market proliferates but Europe’s regulatory roadblocks spur alternatives','338383','https://www.nutritioninsight.com/news/cbd-policy-proposal-one-hemp-urges-congress-to-classify-cbd-as-dietary-supplement.html', 'article','CBD in F&B? Global market proliferates but Europe’s regulatory roadblocks spur alternatives');return no_reload();">advised US Congress on a policy solution to create a regulatory framework for CBD or hemp-derived products as dietary supplements.

“The CBD market is dynamically changing,” Tate at ADSL tells us.

“Unfortunately, even though CBD has a long history of use and significant amounts of modern research to support it, different countries’ regulations may make market access a challenge.”