Brightfield Group have released data showing Germany poised to be a frontrunner in the development of the CBD industry in the coming years.
The news emerged as a key takeaway amid a very positive bigger picture, as the market intelligence agency forecasts 400 per cent growth to 2023 of a European market estimated at EUR282m ($318m) in 2018.
The report points to Germanyâ€™s existing sector growth, with the current status generating their forecast that the country will hold an EU-leading $605m share of the market by 2023.
Bethany Gomez, Brightfield MD referred to recent legislation being influential – â€œThis is a great opportunity for developed brands to enter and expand through Europe with far less competition than weâ€™re seeing in the US.â€
â€œWith the Novel Food Act, it is a challenging legal environment to operate in, but impending regulatory changes are likely to smooth the way for significant mid-term growth.â€
Other European states expected to lead the way in the medium term are identified as the present leader – the UK, and Austria.
The UK and Austria made up an $80m market in 2018 and further growth in the UK is very much dependent on how regulation evolves in the borderline area between supplements and medicines.
The Novel Food Act has caused some alarm in the industry in recent weeks but Freddie Dawson, head of content at CBD-Intel, is reassuring on the subject.
â€œThe most likely (outcome) is that little changes. Larger chains may choose to drop CBD food/ food supplement lines until there is approval but it is likely CBD will still be available on the market.â€
Recently CBD broke new ground in the UK with a landmark event. Birmingham played host to the UK’s first Hemp & CBD EXPO in March of this year.
The CBD market intelligence specialists also predict a similar outcome as happened to nicotine after the roll out of EU anti-tobacco laws in previous decades – gravitation to patches and gums etc. In this instance CBD users could migrate to other products with the likelihood of e-liquid adoption in the UK.
What is also apparent is that the use of CBD has received support from across political spectrums regardless of the member state, which would indicate plenty of future legislative debate ahead.
Switzerland and Spain got some attention in the report for the efforts they have made in building and improving regulations, which are expected to facilitate increased buyer confidence in those markets over the coming years.
The report forecasted the continent’s CBD market is expected to grow $1.7 billion by 2023, with its 2019-2023 CAGR totaling 42 percent, however this growth relies on receiving the needed approvals and other key drivers.