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Cannabis Business Insights | Monday, July 03, 2023
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The medical cannabis and CBD industries are witnessing remarkable growth, but the lack of adequate regulation has resulted in a market flooded with untested or mislabeled products. As the industry matures, the importance of testing and quality control becomes increasingly evident.
FREMONT, CA: The medical cannabis and CBD industries are experiencing rapid growth, attracting numerous new businesses seeking to establish themselves in this emerging market. However, the industry has outpaced regulatory frameworks, resulting in a proliferation of untested or mislabeled products. In response to these challenges, a parallel industry focused on product testing has emerged, aiming to ensure transparency and quality in the market. While progress has been made, comprehensive testing and affordability still have a considerable way to go. Reliable testing is crucial for the well-being of patients, the success of businesses, investor confidence, and the industry's overall reputation.
In an ideal ecosystem, testing and analysis would primarily measure product quality and legality as a final safeguard against potential contaminants. However, due to limited transparency surrounding product origin and supply chains, testing remains the primary method industry operators use to ensure product safety. This is especially vital for medical cannabis products, where understanding the content and consistency of medication is essential for patients, prescribers, and manufacturers.
Testing is essential for determining a cannabis product's cannabinoid and terpene profiles. These variables are crucial in selecting the appropriate strain for specific effects or medical conditions. While the two cultivars may appear identical, their cannabinoid and terpene compositions vary significantly. Testing allows for precisely identifying the chemical makeup, enabling targeted treatment and desired effects.
The rise of testing has enabled businesses to accurately assess the value and quality of products. Products sold at suspiciously low prices without a valid Certificate of Analysis (CoA) or an outdated certificate can now be easily identified as potentially substandard. The lack of product testing in medical cannabis and CBD industries has eroded trust among patients, consumers, and regulators.
Navigating the complex landscape of compliance in the industry is a significant challenge. The legal framework for CBD products involves international, national, and sub-national legislation, leading to ambiguity and a lack of clear guidelines. Many CBD products are being sold under legally uncertain conditions, as businesses often disregard the Novel Foods' status of CBD and continue to sell products while assessments are ongoing. As a result, the industry remains primarily self-regulated, with limited resources available for government enforcement.
Despite the absence of comprehensive regulations, many industry operators are adopting their standard practices. These businesses aim to position themselves favorably by prioritizing quality control measures when regulations catch up with the industry. Currently, testing standards are often considered guidelines rather than legal requirements, leading some businesses to seek labs that may provide favorable results.
Comprehensive testing ensures patient safety, establishes consumer trust, and maintains the industry's reputation. Efforts to implement standardized practices and increase transparency are essential to drive the industry forward and pave the way for robust regulatory frameworks in the future.
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