The CBD industry / market is rapidly evolving as various states legalized the consumption of marijuana for recreational and medicinal uses. CBD finds its application across various industries, including cosmetics, health products, skincare, food and beverage, pet products, and pharmaceuticals. As per BDS Analytics and Arcview Market Research, the collective market for CBD will exceed US$20 billion in the USA by 2024.
Recent technological developments are driving the CBD industry to reach maturity and continue thriving. These developments help players in the CBD sector to find new and innovative solutions.
Let’s look at some of these technological advancements and see how they are driving the CBD industry forward
1. Improving Extraction Processes
Earlier, there were limited options available for cannabis extraction. However, the adoption of high-tech industrial machinery helped in introducing new forms of cannabis extracts, such as oral tinctures, vape oils, and wax concentrates. The most popular and advanced technique of extracting cannabis is supercritical CO2 extraction.
In this method, increased pressure and temperature turns gaseous CO2 into a supercritical fluid. It is a state where CO2 adopts the properties of both gas and liquid. CO2 acts as a solvent in this state and separates the essential compounds from the plant material. Supercritical CO2 is the most recent technique but is a popular and ideal choice. It is the cleanest, safest, and quickest method for chemical extraction of oils and waxes from cannabis.
2. Efficient Growing Lights
Marijuana or cannabis plants need wide-spectrum light to grow properly. It is easy to grow cannabis plants in warm regions or tropical climates. However, it is expensive to grow plants indoors, as it demands high investment in expensive equipment and high-intensity discharge bulbs, which are costly and consume a lot of electricity.
LED technology that revolutionized the home lighting market is one of the most sustainable and cost-effective solutions. LED bulbs produce a wide-light spectrum, without emanating much heat. Thus, it is easier for growers to control the temperature. The introduction of directional lamps further helps direct LED light rays at the growing plants.
3. Nanoencapsulation Increases CBD Bioavailability
CBD products have low bioavailability. The human body system absorbs only 20% of the substance into the bloodstream when taken orally in the form of oil or CBD edibles. The body eliminates the rest 80 to 90% of the CBD substance. It happens because CBD in the form of oil is not water-soluble.
Nanoencapsulation helps solve this problem. It reduces the size of CBD extract molecules to nanoparticles and facilitates absorption into the bloodstream faster. Encapsulating CBD in a smaller emulsion can dramatically increase the bioavailability of CBD. Smaller emulsion allows the substance to blend smoothly with water, making it easier to consume. Nanotechnology is still in its initial phase and requires further studies.
4. Catering Consumer Desires by Creating Personalized Products
Each person is different in terms of individual biochemistry. It makes consumers process the chemical differently. For some, CBD oil can work very well, whereas others may find CBD oil less effective. Thus, it is difficult for CBD consumers to find the right product for their bodies.
Providing biochemically-tailored CBD products for consumer’s unique physiology is one of the best solutions to this problem. Some companies that are producing CBD products are now determining how a person’s body reacts differently to different products. Global Cannabinoids, a leading USA CBD manufacturer, allowed its customers to completely customize their bulk and wholesale CBD oil with a similar profile of minor cannabinoids of their choice.
5. Enhancing Market Research & Data Collection
Artificial intelligence has started making a positive change in the CBD market. Big data and machine learning allow CBD companies to access valuable information that provide insights on consumer demand and competitors. It helps in taking marketing, sales, and branding decisions. A data-driven company has better chances of surviving in a competitive market.
AI also helps manufacturers and growers to determine the changes required in the manufacturing processes to make the operation more efficient. Continuous use of AI and big data in the CBD market can reduce overhead costs and increase return on their investments in the future.
6. Quality Tracking Software
The rapid growth in the CBD industry also raises questions on the quality of the products. Nowadays, consumers prefer to know about the process of harvesting, extracting, and processing CBD products before making the purchase. It led to the introduction of seed-to-sale tracker software, primarily developed to track pharmaceutical drugs. The seed-to-sale track software increases transparency across all levels of the life cycle of CBD products.
The software also allows manufacturers and producers to control every step of the production process. Thus, it helps them ensure quality and provide transparency from beginning to end. It also helps them monitor the return on investment and enables them to improve profits.
7. Solutions to Banking Barriers
Cryptocurrency and CBD oil are two of the most futuristic trends in 2020. CBD oil offers therapeutic benefits to maintain overall health. However, the legal status of CBD and its status as a medicinal product still exist in a gray area in the world. Thus, one of the challenges that CBD companies face is to get financing and merchant services.
It is where CBD and cryptocurrencies come together. Cryptocurrencies provide CBD and other cannabis-related companies the resources to accept payments and get financing. Crypto transactions allow CBD businesses to bypass traditional baking systems and manage their finances in a fast and safe manner.
Using cryptocurrencies also allows these companies to avoid many of the banking fees and some of the taxes associated with traditional currencies. Some of the common types of cryptocurrencies in the CBD space are PotCoin, ParagonCoin, Litecoin, and Bitcoin.
Final Thoughts
The CBD industry is continuously evolving in coexistence with new technologies. Technological developments are providing opportunities for the cannabis industry to grow.
Considering the legal status of cannabis in some countries, it continues to move into the mainstream in terms of recreation and medicinal product. Technological advancements from supply chain distribution to agricultural and farming practices help companies to reduce costs, improve safety, and satisfy customers.
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