[Editor’s note: David Neundorfer, chief executive officer for Open Book Extracts, a North Carolina-based manufacturer and product development house for cannabinoid-enabled ingredients, will provide four monthly blog posts covering noteworthy topics regarding cannabinoid ingredients—starting here.]

CBD and hemp-derived cannabinoid products continue to garner consumer interest and support. The list of mainstream brands embracing CBD is growing across every category, including Vitamin Shoppe in nutrition, Molson Coors and Ocean Spray in beverage, Burt’s Bees and Chantecaille in beauty, and Martha Stewart in pet.

Today’s brands and their consumers are demanding more transparency, consistency and product sophistication.This consumer maturation is driven by continued safety and efficacy research, global market growth, and the evangelism from CEOs to government leaders heralding a more robust, sustainable, mainstream cannabis industry.

As an ingredient manufacturer and product development house that supports many large CPGs and MSOs in the market, it is our duty to illuminate important supply chain considerations in this nascent industry. Here, we will share insights on the state of the ingredients and what to expect in the near future. 

Ingredient Technology:

Since the passing of the 2018 Farm Bill, the hemp-derived cannabinoid industry’s supply chain has gone through a significant maturation process. At that time, CBD isolate was the main ingredient input utilized by formulators, most transactions were price-driven spot buys through brokers, and supplier audits and documentation requirements were light. 

Over the last two years, the supply chain has strengthened with processors obtaining necessary certifications that mirror other mature nutrition categories, developing methods for new ingredients and scalable production, and creating SOPs and testing standards to elevate ingredient purity and formulation ability. 

With this supply chain development, the portfolio of cannabinoid ingredients has grown. Current ingredients available in the cannabinoid category include CBD ingredients, minor cannabinoids, bioidentical (synthetic and semi-synthetic) cannabinoids, flowable powders and water-soluble ingredients.

CBD Ingredients: 

Full-spectrum distillate, broad spectrum distillate, and CBD isolate are the three major CBD ingredients formulators can use in CBD-infused products. Many processors are offering certified organic options for clean-label customers. These CBD ingredients are a great entry point for formulators and brands to start with as they enter the cannabinoid-infused market. 

Minor Cannabinoids: 

Minor cannabinoids have amassed a lot of publicity in the cannabinoid category over the last year, and for good reason. The preliminary scientific literature on minor cannabinoids’ therapeutic potential is promising. We are seeing these ingredients enable need-state focused formulations alongside botanicals, adaptogens, and other natural ingredients. While there are hundreds of cannabinoids identified, each of these rare cannabinoids has their own specific properties and use case, similar to vitamins. The most prominent minor cannabinoid isolates on the market include CBG, CBN, CBC, THCV, CBDV and CBT. 

Bioidentical Cannabinoids: 

Alongside the development of more sophisticated extraction technology for hemp-derived ingredients, there is a growing market for semi-synthetic and bioidentical, or full synthetic, production methods. These ingredient classes are not only preferred by certain nutraceutical and CPG companies, due to the production efficiency, formulation ability and consistency profiles, but they also can ensure regulatory compliance in emerging markets that do not allow botanical extracts.

Flowable Powders & Water Soluble Technology: 

Flowable powder and water-soluble technology are examples of ingredient technologies supporting need-state formulations that enable targeted delivery, controlled release, and fit seamlessly into wellness rituals and routines. Both of these ingredient technologies will play a critical role in the nutrition industry in coming years.

Looking Forward: 

We expect to see continued development and expansion in the cannabinoid ingredient category; enhanced potency, bioavailability, stability, targeted delivery and controlled release. Research will be paramount to discovering these improvements and many of the leading companies in the industry are investing into a toolkit that can translate in-vitro study success to these ingredient technology breakthroughs.   

In future blog posts, we will share some of the defining research and sophisticated product development efforts that will continue to lay the foundation for cannabinoids’ role in positively transforming human health and well-being.

You can also learn more about these topics at www.openbookextracts.com. 

Dave Neundorfer

David (Dave) Neundorfer is chief executive officer for Open Book Extracts, a foremost North Carolina-based manufacturer and product development house for the industry’s most innovative and highest quality cannabinoid-enabled ingredients. He may be contacted at www.OpenBookExtracts.com.

www.OpenBookExtracts.com