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CBD Oil and Hemp Cultivation, Production and Distribution Challenges, Business and Industry Trends Analysis

While it is derived from cannabis/hemp plants, part of CBD oil’s recent growth is that the substance does not have psychoactive effects on the body the way THC does.  In fact, CBD oil can be extracted from industrial hemp which has virtually no THC.  CBD oil can be placed in a number of edible products, it can be inhaled in containers used for e-cigarettes, or made into an aerosol for oral ingestion similar to oral antiseptic sprays. 
Currently, one of the major issues facing the production and distribution of CBD based products is the relative novelty of the market. Before the 2018 delisting of CBD as a controlled substance, hemp production for CBD extraction was generally small scale and isolated to states with legalized marijuana. The localized nature of production, combined with a decades long ban on industrial hemp growth in the U.S. that also ended in 2018, means large scale production and distribution networks may have been lagging consumer interest and product demand. Growing hemp is a labor-intensive activity.  It requires significant investments of capital, time and manual labor on the part of farmers.

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