Cannabis-Infused Products Face Challenges in Europe and the U.S.

In addition to satisfying consumers with improved flavor, cannabis-infused products are also evolving to meet new consumer safety standards, according to New Frontier Data.

In early 2019, the European Commission announced that ingestible products containing cannabis would be classified as "novel foods," presenting regulatory barriers against the sale of CBD edibles and beverages across the continent.

However, few member states (for example, Austria and Spain) have effectively implemented the required safety assessments. On the other hand, in February 2020, the United Kingdom became the first country in the world to establish a clear regulatory pathway for the sale of CBD ingestibles. Starting in March 2021, the Food Standards Agency (FSA) will require safety and toxicology reports for all compounds found in new CBD food products.

The consequences of the UK's regulations are likely to impact CBD products worldwide. With dozens of unknown or poorly understood compounds, testing requirements will favor the development of isolated products. The relatively costly application process is likely to leave many current CBD manufacturers behind, while those who gain approval will find themselves in a good position, free to operate in a less competitive and fully legal environment.

Meanwhile, the technical aspects of the manufacturing process seem bound to leave cannabis-infused cosmetic and topical products occupying yet another legal gray area for EU markets.

On the other side, the U.S. Food and Drug Administration (FDA) has been comparatively reticent at the federal level regarding the broader CBD market. Consequently, several states have issued their own guidelines and rules to provide clarity to business stakeholders. As of this month (April), 15 states have legalized CBD by statute, another 15 have labeling requirements by mandate, 18 others have no published laws, and three completely prohibit CBD. Labeling, testing, and registration requirements vary from state to state concerning the types of cannabis-infused products that are allowed. Oregon, for example, recently decided that no beer or other alcoholic beverage can contain CBD or THC.

Emulsion technology is also subject to varying regulatory restrictions. The FDA has been consistent in ensuring that the safety of ingredients in emulsions is understood, but some emulsion companies are pushing the issue further, claiming to produce nanoemulsions. Any product at the nanoscale will need to prove its safety as nano-sized components, in addition to proving the safety of the ingredients in combination. This scrutiny could raise a potential red flag for manufacturers and processors.

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