For nearly a year, companies specializing in CBD have been emerging across France. This thriving market was launched following the European decree of November 2020, which favored the commercialization of this non-psychotropic hemp substance.
Currently, the CBD market in France is booming. A look at this thriving market, which is nevertheless threatened by government reluctance.
French legislation on CBD
Unlike THC, CBD is a non-psychotropic substance found in cannabis. The CBD market in France has experienced significant growth since the European Court of Justice’s ruling in November 2020.
In one year, CBD distributors have multiplied, reaching 400 in February 2021, not to mention e-commerce. Indeed, specialized sites occupy a significant share of the market. Currently, it ranges from food products to CBD-based cosmetics. With the high-end and innovative products offered and delivery that limits travel, e-commerce is attracting more consumers.
More and more companies are specializing in the CBD sector
Around a hundred companies currently specialize in the CBD sector, not including farmers. They are involved in the transformation of CBD into finished products.
Once harvested, the hemp is sent to specialized companies for extraction. This is where the hemp is transformed into powder or CBD oil. The raw material is resold to brands that create finished products according to their recipes. Some companies do not manufacture their products, but source them from manufacturers.
As a reminder, to be legally marketed in France, CBD-based products must comply with a maximum THC (the psychotropic substance in hemp) content of 0.2%. This level applies to all products containing CBD.
What future for the CBD market in France?
Today, the market boasts hundreds of physical stores and e-commerce sites specializing in the sale of CBD. Despite the boom in CBD sales since the European Court of Justice ruling, companies in the sector still face some uncertainty. Indeed, starting at the end of October, industry players will have to downgrade, as CBD flowers will be banned from sale in France. This will force processors and brands to source their CBD flowers from other countries.
Furthermore, the government’s latest draft decree of July 21, 2021, perpetuates the legal uncertainty that greatly affects the sector. Indeed, the French government has taken a rather harsh approach, unfavorable to the marketing of CBD in all its forms.
However, the THC level permitted by European regulations in CBD is expected to change for the better. Indeed, the authorized THC level is expected to increase from 0.2% to 0.3%, depending on the European Parliament’s vote, which must be validated by the Commission. Doubt thus continues to hover over the legality of CBD in its various forms (flowers, oils, derivatives, etc.).
