NEW YORK, N.Y. – The cannabidiol industry had substantial growth in 2019, but 2020 will be an even better year for the market, especially with the new developments that the CBD food and beverage industry will benefit from.
Despite the lack of federal guidelines on cannabis, and therefore, cannabidiol as well, there is an increasing number of retailers delving into the CBD food and beverage industry as well as other sectors in the market.
Back in November 2019, the FDA sent a couple of warning letters to cannabidiol sellers and further acknowledged unanswered questions and data gaps of the toxicity of CBD. The FDA published the Consumer Update, which states that the use of CBD in food and as a dietary supplement remains illegal.
Meanwhile, the CBD food and beverage industry are waiting on the next advisory of the FDA regarding how such products could be lawfully brought into the market in 2020 after its November announcement.
With the absence of federal guidance in the CBD food and beverage industry, some of the states in the US took matters personally by creating a regulatory patchwork. But, these state rules and existing regulations all over the country are conflicted. In New York and Maryland, CBD-infused foods and drinks are illegal. Industry players are watching out on state actions amid the lacking federal regulation.
The city officials in New York have already penalized five restaurants selling CBD edibles. The fines range from $200 to as much as $650. Furthermore, the state has already passed a new law, which is scheduled to take effect in March this year. The law establishes the regulatory framework in terms of selling CBD and CBD based products. Industry players continue to wait on new rules that officials are bound to publish in the coming weeks.
The CBD industry’s class action litigation is also expected to increase in 2020, especially for cases involving the companies in the food and beverage industry that sells CBD-enhanced products. According to industry experts, there will be an influx of lawsuits and complaints related to CBD in 2020.
With the rising popularity and use of CBD, the FDA and state official are set on establishing the right thing to do in terms of CBD. The latest pronouncement of the FDA and the increasing availability of CBD and other CBD-infused products are expected to start a ruckus in the private sector. Meanwhile, several private claimants continue to wait for further developments regarding the CBD market, especially in the food and beverage industry.