Why US CBD brands should turn to the UK and Europe, now—and how

As stigma subsides, CBD infuses an ever-wider range of products, more research is carried out and legislation shifts, demand for Cannabinol is quite literally soaring.

Just look at the figures. 

The global market for cannabidiol (CBD), valued at $9.3bn in 2020, is set to reach $23.6bn in revenue by 2025—a predicted compound annual growth rate of 22.2%. For businesses tapping into this growing popularity, the possibilities are dizzying. The US market is already huge, accounting for an expected $13.39 billion by 2024. 

However, while the US currently has the No.1 CBD spot, this may well change. And sooner than you think. 

Making strides in the UK

CBD is already picking up pace in the UK. Reports by Dynata and YouGov show that, in June 2019, 11% of the UK population had tried CBD and 1.3 million were regular consumers in the previous 12 months. From a financial standpoint, things are also looking rosy—in 2019, the UK CBD market was estimated at £300 million ($417 million) and is set to triple in the next 5 years, just short of the monumental £1 billion ($1.3 billion) mark.

The EU is closing in

European countries are also starting to catch up. Their CBD market is expected to rise by a massive 400% between 2020 and 2024.

Until recently, a combination of half-hearted regulation, unclear legislation, and stigma limited growth. Since 2019, ingestible CBD requires a Novel Food status application, providing a regulatory framework for CBD in the EU – and also the UK. In 2020, the European Court of Justice ruled that CBD is not a narcotic. 

Change is clearly in the air. 

As a result, many European countries are loosening legislation, while tightening regulations to grow trust and filter quality. Countries like Germany and Switzerland are already in on the game. Others are just waiting to be tapped into such as Poland with a strong tradition of growing hemp. 

Bold US brands

Potential that some US CBD brands have already set their sights on. Despite linguistic and regulatory challenges—to a great extent, each European country still applies its own set of CBD rules in its own language—the potential pickings are rich. 

To smooth out some of the obstacles along the way, mellow’s B2B powerhouse is already swinging into action. Committed to “offering multi-market entry and access to millions of customers for globally minded CBD and Hemp wellness brands,” Grow by mellow is putting its experience in the UK and EU at service of US companies.

To meet the challenges of crossing the Atlantic, grow by mellow offers a full ‘Build and Operate’ service to launch multi-product eCommerce sites, so brands can grow in the UK & EU markets. Not to mention capitalise on end-to-end services, from photography to onsite copy, social media management, customer acquisition and sales growth.

Growth opportunities are just waiting to be seized. Demand for CBD is on the up. Tailored support to launch into the UK and EU markets exists in the form of integrated, end-to-end support for quality conscious CBD brands looking to take the next step. 

2022 will, without doubt, be an exhilarating year for the CBD industry in the US, UK, Europe and beyond.

If you’re a US-based CBD brand looking to widen your international horizons, don’t hesitate to get in touch and find about more about our tiered B2B offering.

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