In recent years, the legalization and regulation of cannabis have become an important topic in many countries: how to find the balance between promoting cannabis sativa cultivation and ensuring society’s consumption safety at the same time? In this article, we take a closer look at cannabis laws in different countries: the United States, the United Kingdom, Australia, and Europe. What are the trends of the CBD market and what can we expect in the future?
When we talk about cannabis in this article, we mean industrial hemp (Cannabis Sativa) that is not hallucinogenic.
A significant step forward in the legalization of industrial hemp was made with the Farm Bill update in 2018. This legislation allowed hemp cultivation and removed hemp and hemp seeds from the Drug Enforcement Administration's (DEA) list of controlled substances.
The Bill also directed the United States Department of Agriculture (USDA) to develop and issue regulations and guidelines to implement a program to create a consistent regulatory framework for hemp cultivation throughout the United States.
Under the Farm Bill, legal cannabis is defined as hemp containing less than 0.3% THC on a dry weight basis, which distinguishes it from psychoactive substances such as marijuana.
Since the update of the Farm Bill, the U.S. hemp industry has grown exponentially, and farmers and entrepreneurs have begun to use this unique crop to produce various types and usage products – including CBD PRODUCTS.
However, there are still a lot of challenges in this area, including regulatory uncertainty, quality control issues, and other issues that face growers, producers, and sellers. One of them is, for example, advertising hemp products. So far, it has been extremely difficult to run an advertising campaign for the largest internet search engine Google, because industrial hemp and its products are still classified as recreational drugs.
Despite the obstacles, the hemp industry is growing and demand for hemp products, especially CBD, is growing, so stakeholders are demanding clearer guidelines and standards to ensure safe production for consumers while stabilizing the market.
Hemp regulation in the UK is relatively favorable compared to other countries, and industrial hemp has been legalized for a long time, but there are also many regulations and restrictions.
Hemp is classified as a Class B controlled drug under Schedule 1 of the Misuse of Drugs Regulations 2001 and the Misuse of Drugs Regulations 2015, therefore a domestic license is required for controlled drugs to grow fiber hemp or produce hemp products.
It is legal to grow fiber hemp with THC<0.2% with the necessary license in the UK.
However, UK hemp growers are required to destroy hemp leaves and buds (flowers) as soon as they are separated from the harvested plants. The only parts that can be legally collected from the crop are the seeds and hemp stalks, otherwise known as hemp fiber. For many Farmers, this regulation is a loss, because as we know, it is the leaves and buds that contain the highest amount of CBD, which is the most valuable substance in the hemp plant.
Imported hemp tea made from leaves and buds and imported CBD oil are legal in the UK though. Of course, it must contain <0.2% THC, the Food Standards Agency oversees the regulation of hemp products, including CBD oil and supplements, which are classified as food products.
The UK hemp market has expanded rapidly in recent years due to growing consumer demand for natural health and wellness products.
On 12 November 2017, Food Standards Australia New Zealand announced that hemp-based food products are legal for human consumption in Australia.
Hemp legality laws in Australia vary from state to state, but generally, hemp and its products are considered legal if they contain <0.5% THC. In some states, THC < 1%.
Industrial hemp can be grown under license and only from certified hemp seeds. Certified hemp seeds must be grown from a plant with a THC <0.5% in leaves and buds.
The rules for growing, producing, storing, and purchasing hemp are quite strict:
Hemp and hemp products can be imported into Australia, but strict rules also apply:
According to European law, hemp that contains THC<0.2% is completely legal, and hemp agricultural cultivation is regulated by the Common Agricultural Policy (CAP).
Legislation regulating CBD varies greatly across Europe. Some countries have comprehensive regulations, while other countries have only partial regulations. Since there is currently no single EU regulation in this area, before starting to grow, produce, or sell hemp and its products, it is important to check the local legislation of a specific European country.
The Court of Justice of the European Union stated that a member state cannot ban CBD legally produced in another member state, regardless of which part of the plant is used to produce it, as this would be contrary to the free movement of goods within the member states of the European Union.
CBD as a compound is not banned in any European country, but member states can regulate or restrict the use and consumption of hemp and CBD.
Most European countries do not have a law that specifically prohibits the sale of CBD as a food or dietary supplement. However, food products containing CBD to be sold in the European Union require approval from the European Food Safety Authority (EFSA).
The European Industrial Hemp Association (EIHA) operates in Europe, which represents the interests of European hemp growers and producers, and pays a lot of attention to the interpretation and refinement of regulations. This association can already boast significant achievements, for example, Hemp leaves separated from the flower are now no longer classified as food under EU law, which requires EFSA approval, allowing the sale of hemp-infused tea and tea-like products in member states.
It is allowed to grow and produce hemp products from all parts of the hemp plant with a THC content of <0.2% in Lithuania.
Every year, more and more scientific research confirms the health benefits of CBD and the treatment of some major diseases. This is a main factor in the growth of CBD demand and market. Both manufacturers and various associations are putting a lot of effort into persuading state governments for wider regulation of hemp products and CBD in particular, which is why production and sales volumes are expected to grow even more.
According to data from different sources, the global CBD market was estimated at USD 7.6 billion in 2023, and it is predicted that by 2033 will reach approximately 36.6 billion USD. So the demand for CBD is sure to grow, and so will the number of growers and producers around the world.