Despite the twin constraints of the ongoing COVID-19 pandemic and a regulatory pause on CBD applications for inclusion to the EU’s Novel Food Catalogue, there remains a strong upward trend in Europe’s CBD and medical cannabis industries. The U.K. market alone in 2019 was valued at £300 million (USD$356 million) by the Centre For Medicinal Cannabis, while New Frontier Data projects the EU CBD market (i.e., 27 countries, not including U.K.) to reach €8.3 billion (USD$9.9 billion) in 2020. In the wellness sector, CBD is one of the fastest-growing product categories in the U.K.– worth more than the its vitamin C and D markets combined, and expected to be worth £1 billion (USD$1.19 billion) by 2025. Some also expect that Europe will become the world’s largest legal cannabis market in the next five years with France, the U.K. and Spain reviewing current legislations, and Germany, Italy, and the Netherlands expanding existing programmes.
As the market matures and grows, questions of marketing and packaging come increasingly into play. At the more visible consumer end of the market CBD products cluster of niches (e.g., from beauty and skincare to wellness, soft drinks and more), all are needing suitable packaging and branding. According to a recent GQ article, “CBD and, by association, cannabis are undergoing something of a brand overhaul.” From earlier days of clip art and oft-used imagery of the seven-pointed cannabis leaf, there has been a move to greater sophistication in packaging – albeit with the overall colour scheme for many brands remaining green.
At present there is not much brand loyalty in the EU CBD market. Of those who have tried CBD,32.1% reported always using the same brands, with 25.3% saying that they would occasionally try new brands. Price and access are two key factors in the purchasing journey.
The pandemic may further change packaging and point-of-sale preferences. Consumers may also seek simplicity and minimalism, with signature ingredients associated with immunity, protection, natural healing, and strong alignment to health, therapeutics and wellness.
There are regulations to observe in cannabis/CBD packaging and labelling. At the level of high-street CBD brands, child-resistant packaging is mandatory with twist-off caps and other packaging technologies. In terms of the packaging across Europe, levels of CBD and THC should appear very clearly, though THC by law in Europe may not yet exceed 0.2%. CBD products should state whether they are “full-spectrum” with other subjects, or made with isolates with other cannabinoids present. Where THC products are allowed, it has been argued that effective THC labelling and packaging could help reduce any risk of accidental overconsumption of cannabis edibles.
Packaging styles are vital to the sector, with growing resources such as Ziplock bags, droppers, creams and pipettes or droppers. Ethical and sustainability issues are often part of CBD and cannabis products’ sales strategies, and there is a move towards the naming of ingredients along with potential allergens, nutrition advice and warnings. In the U.K., cannabis-based products need to include the active herbal ingredient, expiry date, ratio of THC and CBD, and “keep out of reach and sight of children” warnings, as subject to the European standard covering non-reclosable packaging for medicines, and that covering similar packaging for non-medicines.
The CBD industry nevertheless faces hurdles to effective marketing resources while companies are still often denied access to bank accounts, credit cards, loans, or online payments from companies like PayPal and Stripe. Marketing in the sector is also held back by not knowing levels of future enforcement to expect. For now, U.K. businesses may continue to sell pre-existing CBD products before 31 March 2021. Clarity for the EU-wide industry may take longer still.