The outlook on CBD: What does 2020 have in store for the CBD market?

Though FDA made its position on CBD clearer at the end of 2019, technically all of FDA’s enforcement actions so far have qualified as unofficial agency actions.

With a market estimated to grow more than 260% to a dizzying $1.25 billion over the next four years, it appears that the demand for cannabidiol, more commonly known as CBD, is expected to continue to grow. All of this growth is still expected despite the actions by the Food and Drug Administration (FDA).

In November 2019, FDA issued Warning Letters to more than a dozen companies saying they had violated the Federal Food, Drug, and Cosmetic Act for selling consumer products with CBD. FDA stated that these products could not be marketed because they made unlawful drug claims for their products and that the use of CBD in these products was inappropriate. FDA’s currently stated policy is that CBD cannot be used as ingredients in food and dietary supplements without new FDA regulations allowing its use. Furthermore, FDA stated that it had safety concerns regarding the use of CBD due to potential side effects associated with the ingredient.