The emergence of the global CBD (cannabidiol) market has been met with a myriad of challenges that must be addressed to spur its growth and development.
First, regulatory uncertainty is a major roadblock. CBD’s legal status varies significantly from one country to another, and even within states or regions of certain countries. This lack of uniformity has created confusion and impeded the ability of businesses to operate smoothly across borders. Companies in the CBD industry often struggle with navigating complex and ever-changing regulations, making it challenging to scale their operations globally.
Second, the stigma associated with CBD and its association with cannabis must be overcome. While CBD is non-psychoactive and offers potential health benefits, it is still wrongly perceived by some as a recreational drug. This stigma has led to apprehension among consumers, healthcare professionals, and investors, limiting the industry’s growth potential. Raising awareness and educating the public about CBD’s therapeutic properties and safety is an ongoing challenge for industry stakeholders.
Another major obstacle facing the global CBD market is quality control and product consistency. Due to the lack of standardized manufacturing processes and regulations, there is a wide variation in the quality and purity of CBD products available in the market. This inconsistency not only affects consumer trust but also poses health risks. Ensuring the quality, safety, and reliability of CBD products is crucial for the industry to gain wider acceptance and grow on a global scale. At Eastern Spectrum Group (ESG), we adhere to all Thailand and international regulatory, quality, and safety standards for our CBD products.
Lastly, access to banking and financial services remains a significant challenge for CBD businesses. Many financial institutions are hesitant to work with companies in the cannabis and CBD sector due to the ongoing legal and regulatory uncertainties. This has forced many CBD companies to operate on a cash basis, which is not only inefficient but also raises concerns about transparency and financial security. Finding reliable and compliant banking solutions is an ongoing struggle for businesses operating in the CBD market, hindering their ability to scale and invest in research and development.
Overcoming these hurdles will require collaborative efforts from industry stakeholders, policymakers, and the medical community to create a more stable and secure environment for the CBD market to thrive on a global scale.
Photo by CRYSTALWEED cannabis on Unsplash
