It’s quite evident that the cannabis industry has gone through several changes in the past few years. Some changes befitted the industry while others marred its reputation. In many ways, the CBD industry is an unstoppable juggernaut. It’s already a multi-billion-dollar sector that will only get bigger, as millions of consumers have made their preferences clear. But CBD companies still have to navigate many unique hurdles, from obtaining capital to using standard payment processing to being able to market on regular channels.
The crucial developments that will remove these barriers are the FDA classifying CBD as a dietary supplement, the industry’s unrestricted access to financial services, and an intelligent regulatory framework that increases product quality and safety across the board.
Over the past year and a half, consumers are looking to uplevel their lives, take control of their health, and seek preventative and optimization tools that they can control. People are making more proactive decisions about their overall wellness, which has fueled an even greater interest globally into all that cannabinoids have to offer.
Below, we explore the key trends in innovation for 2022 that will transform the cannabinoid industry.
1. Products Grounded in Research
The efficacy of cannabinoid products in relation to various health conditions has, for a long time, remained up for debate, with scientific research ongoing and many studies having focused on only small groups of participants thus far. But since 2010, nearly 23,000 scientific papers have been published on the topic, and that number continues to grow, which makes cannabinoids now one of the most studied natural remedies in the world.
Radicle Science, a transformative healthtech B-Corp company offers virtual, direct-to-consumer clinical trials to provide the first ever path to natural product validation at scale. In December, they announced initial findings from the Radicle ACES (Advancing CBD Education and Science) study – history’s largest longitudinal real world evidence (RWE) study of nearly 3,000 participants to determine effectiveness of botanical products containing CBD.
As the most innovative and sophisticated cannabinoid brands pull out all the stops to increase customer confidence, we can expect to see an increase in partnerships between brands and respectable research facilities, like Radicle Sciences, to prove just how effective their products are. In 2022 we will see efficacy studies become demonstrative for brand innovation pipelines.
2. The Rise of THCV
As research broadens around other cannabinoids and terpenes like CBN and THCV, new and rare cannabinoids offering distinct therapeutic benefits will begin to emerge and gain mainstream adoption.
THCV is probably the most sought-after cannabinoid on earth. THCV is often referred to as “the sports car of cannabinoids,” “diet weed,” or “skinny pot,” terms that allude to its effects and rarity. More than a decade ago, investigation on THCV was spearheaded by GW Pharmaceuticals who wanted to research its therapeutic potential in metabolic disorders and weight loss. Metabolic issues can cause high blood pressure, blood sugar imbalances, increased abdominal fat, and high or low cholesterol.
Since then, animal studies have found that THCV may decrease fat in the liver, balance insulin, reduce hunger cravings, improve bladder control, and have therapeutic potential for schizophrenia, Parkinson’s, epilepsy, and nausea reduction. In human trials, THCV has been found to change elements of brain functioning related to food intake and improve blood sugar control for participants with type 2 diabetes.
THCV has been shown to be energizing and appetite suppressing, two traits that make it an obvious candidate for a valuable form of cannabis. This year, brands such as Wana, Cheeba Chews, and Temper launch products featuring THCV to support various desired outcomes around energy, focus, and appetite management, and we expect to see a proliferation of THCV products in 2022.
3. Drinking Up
Ingestible products are today’s biggest growth sector in the cannabis community. Given ease of transport, the dynamism of the beverage category, and the likelihood of consumers to more easily experiment with beverages than most other categories, nothing grew faster in 2021 than beverages. . Beverages present an alternative to alcohol at social functions and a new product category to attract cannabinoid-curious consumers.
According to BDSA and market research firm IRI, beverages constitute 5% of the CBD edibles market. However, Jessica Lukas, SVP of commercial development with BDSA, expects to see huge growth. “Beverages are the hot topic,” she says.
“Beverages grew 60 percent this year over 2020, so it’s huge, but off a very small base,” Lukas said. However, she pointed out, it’s a “really important category.” Drinks offer competition, she explained, to other functional beverages as well as to alcohol, as more consumers opt to abstain from adult beverages. BDSA anticipates a $2.5 billion cannabinoid beverage market by 2026.
Beverages also open the door for experimentation with combining cannabinoids, terpenes, and flavonoids to create delicious, endocannabinoid activating experiences. Brands like House of Terpenes (based in Canada) and American-based CANN pair cannabinoids with complementary flavors and terpenes for a unique drinkable experience. Within beverages, we’re likely to see cannabinoids in functional products ranging from seltzers and kombucha, to performance and energy beverages, as well as nonalcoholic cocktails or spirits.
4. Medical Hemp Products: CBD with Feeling
Most medical marijuana (cannabis) programs focus on THC, but hemp-derived CBD rather has many medicinal benefits and is federally legal. This makes CBD of great interest to patients who may not want to experience the intense psychoactive effects of THC-forward products.
Medical CBD products encountered rapid growth this year, showing no signs of stopping in 2022 and beyond. The demand will continue to grow, particularly as more Boomers and Gen X patients opt for alternative wellness options rather than taking prescription medications.
A new extraction technique that infuses CBD gummies with hemp-derived Delta-9 (potency less than .3 percent), also called CBD with feeling, is becoming increasingly popular. The gummies are compliant because they are less than .3 percent THC but they will provide a mild psychoactive effect.
5. Big-Box Retail Access Will Spur Sales While Stabilizing and Improving Supply Chains
Once companies can market CBD as a dietary supplement, CBD will hit the mainstream of brick-and-mortar retail. In particular, big-box chains will offer a range of topicals and ingestibles in various product categories and applications.
However, even in advance of regulations, progressive and pioneering retailers are embracing cannabinoid-enabled products. In 2020, Vitamin Shoppe was one of the first major retailers to support both ingestible and topical CBD products on their shelves. In 2021, we further saw the opening of distribution for CBD products in the alcoholic beverage channel. All three of the top spirits and wine wholesalers in the U.S. are now active in CBD, with Breakthru Beverage Group entering the CBD and Relaxation beverage space through a partnership with Recess, alongside Southern Glazer’s Wine & Spirits and Republic National Distributing Company,.
This new distribution could vastly grow the market, allowing consumers easier and broader access to products on store shelves, as well as driving consumer awareness and education around the various benefits of cannabinoid-enabled health and wellness products.
6. Hybrid Plant Wellness Products
Medicinal mushrooms have been increasingly popular in the wellness space for several years. So combining therapeutic fungi with plant medicine like cannabinoids was inevitable. Mushrooms and hemp have complimentary benefits, including immune-boosting properties, improved focus, reduced stress, and neuroprotective qualities.
Mushroom/ CBD blends are currently on the market in several forms, including teas, tinctures, and capsules. Popular capsule brand Caps by Cookies combines the medicinal properties of CBD, CBG, CBN, and terpenes with the healing powers of Lion’s Mane and cordyceps.
7. Brand Makeovers
Increasingly, consumers are seeking out brands that align with their personal values, and thinking more than ever before about just which ones they want to support. With this in mind, we can expect to see some of the first brands to the table having a rethink about how they present themselves, placing greater focus on factors like sustainability, diversity and inclusion to name but a few.
Gone are the days when we would take what brands say on their labels at face value, and consumers are more likely to do their own digging these days to ensure they measure up. In 2022, brands will need to be more transparent in order to remain in favor, and the winners will be those who can do so whilst continuing to stand out from the crowd with efficacious products.
Nicole Brown serves as Chief Innovation Officer for Open Book Extracts (OBX), an ingredient manufacturer and product development house focused on cannabinoid-enabled health and wellness, located in North Carolina. As Chief Innovation Officer, Nicole channels data-driven consumer insights into a long-term course of action, delivering immediately usable innovation, and drives awareness and thought leadership by overseeing strategic marketing efforts, including PR, event marketing, advertising, and partnerships.
