What's Wrong With The CBD Category?

By John McDonagh, CEO of NextEvo Naturals 

The CBD industry has rapidly increased market interest and public awareness quickly. In just a few short years, CBD products have captured global attention, including the US Food and Drug Administration, with the clearance of CBD-derived medicines like Epidiolex.

Such a rapid rise could lead some to assume that the marketplace has finished its nascency phase. But as lingering issues remain, it is clear that the industry has several pressing issues to address before reaching a significant maturation point.

Overall, the market needs more clarity and consistency to combat long-running issues, like mislabeling, that continue to hinder public trust and interest. The problems continue to dent the market's momentum, but progress is incrementally improving the landscape. Despite the hurdles, the future appears bright for CBD operators and consumers alike; however, it is a cautionary tale.

One of the most effective ways brands can right the wrongs of the CBD category is by producing high-quality, consistent products. In doing so, operators can establish trust with their buyers and educate the public along the way. 

Addressing Absorption

Misconceptions begin right away with the CBD product category. Starting with tinctures, the highest selling form on the market today, many assume that CBD is linked hand in hand with oil. Some even call the category CBD oil. That, however, is incorrect. CBD, due its lipophilic nature, can be easily dissolved in oil, which is a relatively inexpensive process but not particularly a good formulation as the product will not be well absorbed by humans.

The major challenge of these forms of CBD is you don’t get what you pay for and buying based on milligrams just isn’t enough. After all, if your body can’t absorb CBD, the chances of it helping goes down dramatically. As documented by multiple studies, CBD in an oil formulation has an absorption rate between 6 to 10%. The number falls when using isolate, a common form used for making CBD gummies and capsules, which are likely to have absorption rates as low as 1%. 

Unfortunately, most of the effect of current offerings may be due to the placebo effect as consumers report a lack of trust in CBD products after failing to experience the desired effects they had expected. When consumers only receive one to 10 percent of what they pay for, skepticism is warranted. It is on CBD producers to deliver better products. 

Thankfully, progress is here, but it remains more a market rarity than the standard right now. Using advanced formulations and delivery systems, producers are improving absorption rates. In some cases, products are improving four times the average absorption results. Driving these types of results is not easy as there are multiple variables in the process which need to be controlled to obtain consistent results.  The improvements are signs of progress yet many manufacturers do not want to spend the energy and resources to improve. Still, substantial market-wide improvement is required before higher absorption rates become the norm, not a selling point.

When Third-Party Tested Is Not Enough

CBD has long battled with mislabeled products. For years, some producers have skirted the truth with products misrepresenting product potency, cannabinoid content or other critical details. One would think that lab testing would put an end to the concerns. But various reasons negate that reality as study after study continues to find that CBD products found on store shelves are wildly mislabeled.

Most states require hemp to be third-party tested after being processed to check for potency, cannabinoid profile, pesticides, heavy metals, and mold. This is an important first step and you should always be able to trace your CBD product back to its origin. The issue is that the COA (Certificate of Analysis) does not represent the finished goods analysis. Many steps can occur between the raw material becoming a finished product and many manufacturers are only testing at the beginning of the process, as opposed to all the way through or at the end of it as this adds cost.

There is still no regulation in place for CBD products and it is often left to the consumer to find a high-quality manufacturer with the right ethics and knowledge who will test the products at various stages. Some companies instead choose to pump more milligrams into their product than what's stated on the label. A possibly well-intentioned move to ensure consumers get the stated potency or more, this approach creates problems for anyone seeking a specific dosage. Additionally, if the product is made using a full or broad spectrum CBD, consumers may ingest higher THC levels, which could have many harmful effects, appear in drug tests or other screenings.

I would estimate there are a select few manufacturers that test their products more than once in the process, consumers certainly deserve better.

Product Quality at All Touchpoints

Product quality is made possible by several components. First, is plant quality which is tested according to state regulations to ensure the cannabinoid profile is within the Farm Bill regulations (<0.3% THC)  and the product doesn’t contain any contaminants. The second essential quality component is formulation. It is relatively easy to add a certain amount of CBD to a product, however if the formula is not stable or packaged in a proper way, the CBD can degrade due to exposure to light or heat. There are more challenges with formulation as the CBD can be difficult to control during the manufacturing process. In this case a poorly formulated product will result in uneven levels of CBD in the finished product form such as a gummy, capsule and even tincture. 

Manufacturing is the third critical step so the product formulation can be processed consistently on equipment that will match the intended specifications.  Without proper processing controls, again, products will vary greatly from bottle to bottle or piece to piece.  Most manufacturers state they follow Dietary Supplement GMP regulations but based on multiple lab tests of the finished products there is a lot of room for improvement. I have seen some results that are grossly in error and this needs to be cleaned up in order for the category to grow and thrive.  

One of the last steps is to verify your finished products are stable, meaning the contents you claim on the product label are actually in the product for the amount of time you claim with an expiration date. The proper way is to follow ICH guidelines for this testing and then, and only then, are you allowed to put an expiration date on the product. All other products can only contain a Manufactured On date, which means the data has not yet been established.

In Closing

CBD producers are encouraged to implement the best sourcing, manufacturing and product testing protocols possible. Doing so will give consumers the highest degree of confidence in their product. Simultaneously, these efforts help bolster the trust and authenticity of the still-nascent CBD industry. With hope, these measures should help further eradicate the mislabeled products and waning bad actors remaining in the space.

Consumers should also be aware of the risks in the current market. They are responsible for confirming that products have been made by a reputable company, one which has a track record and/or includes individuals who have experience making dietary supplements or other products intended to be ingested by consumers.

Retailers also play a role to ensure the products they stock on their shelves meet the standards of GMP and their internal quality criteria. Just as we see products recalled in other categories, the day may come where additional scrutiny is placed on the CBD category.

I know I look forward to that day, it would be refreshing if many other companies producing CBD products could say the same.