Meeting global demand while adhering to regional regulatory needs
The global cannabidiol market is poised to grow by $29.91 billion during 2021-2025, progressing at a CAGR of 26.93% during the forecast period.
1 Europe, North America, Latin America, Asia Pacific, and the Middle East comprise the regions within the global CBD marketplace. So what does that mean for manufacturers?
International regulators are becoming more favorable towards CBD and for manufacturers, meeting cGMP compliance is a requirement. In Australia, all current CBD products are to be manufactured compliant to a pharmaceutical process. Additionally, the international landscape has seen many Latin American governments taking steps to create legal markets for CBD products, however, companies must comply with extensive GMP requirements. As the cannabinoid industry matures, domestic and international regulations will define manufacturing and quality requirements, only allowing manufacturers who meet these regulations to market products.
The CBD market within the outlined regions can be segmented into the following profiles: pharmaceuticals, natural health products/dietary supplements, cosmetics/topicals, and food and ingredients. In 2020, pharmaceuticals accounted for the highest revenue share of 42.8%.
2 As clinical trials with CBD products continue to demonstrate value in areas of unmet medical need, Vantage Hemp Co. provides international partners with cGMP compliant APIs and clinical trial dosage formats to support their pursuit of regulatory approvals.
Companies that look to meet global manufacturing demand have a requirement to be regulatory compliant across all regions of interest. The international pharmaceutical industry demands cGMP compliance to partner with a manufacturer. Equally, the natural health/dietary supplements, cosmetics and food and ingredients segments look for a manufacturing partner who understands the unique differences for each region they sell products into.
Today, a “one size fits all” manufacturing approach is no longer relevant or acceptable. International clients are requiring compliance, greater variation in products, competitive manufacturing cost, delivery reliability, and more types of after-sales service—requirements Vantage consistently meets.
“We believe Vantage has what it takes to go global and we’ve taken a metered, strategic approach to execution. We’re prepared to overcome challenges and aren’t afraid to move forward and move forward quickly,” said Christian Santi, Director of Sales at Vantage.
“When you expand globally, each country you reach comes with a new set of regulations,” added Santi. “What works in your home country may not work in another.”
1 https://www.researchandmarkets.com/reports/5510825/global-cbd-market-2021-2025?utm_source=GNOM&utm_medium=PressRelease&utm_code=xq3s7r&utm_campaign=1639800+-+Worldwide+CBD+Industry+to+2025+-+Rising+Popularity+of+CBD+Oil+is+Driving+Growth&utm_exec=jamu273prd
2 https://www.grandviewresearch.com/industry-analysis/cannabidiol-cbd-market
