In September, the American Botanical Council (ABC) shared the positive news that consumers in the United States spent an additional $533 million on herbal supplements in 2023 compared to sales in 2022—a 4.4% increase. But the former darling of the consumers—hemp-based phytocannabinoids such as cannabidiol (CBD)—are suffering blow after blow. 

CBD was soaring just a few years ago. In 2018, it overtook turmeric as the top-selling herbal supplement ingredient in the natural channel, and it held that spot until 2021, ABC reports. It still holds the #2 spot with sales just shy of $30 million, but it’s down 13.8%. The drop is more severe in the 2023 mainstream channel, with CBD down 25.9%.

On the regulatory front, hemp groups are sounding the alarm about actions that may further impact sales. In September, New Jersey Governor Phil Murphy signed into law a measure that puts hemp products under NJ’s Cannabis Regulatory Commission, which oversees New Jersey’s recreational and medicinal marijuana markets. 

Governor Murphy explained his reasoning: “There recently has been a proliferation of products that meet the legal definition of ‘hemp’ due to their low concentration of delta-9 tetrahydrocannabinol (THC) but that are intoxicating because of the presence of other forms of THC—such as delta-8 and delta-10—often at artificially increased levels. These products are sold outside of the regulated market for cannabis even though they can have similar effects, may contain harmful chemicals and other contaminants, and often are sold without appropriate testing and labeling. Too frequently, these products are readily available to minors.” Under the law, “it will be at least temporarily unlawful for intoxicating hemp products to be sold or distributed in New Jersey by anyone other than cannabis businesses licensed and overseen by the Cannabis Regulatory Commission.”

On the other side of the country just a day later (as we were going to press with this issue), the U.S. Hemp Roundtable issued an alert after it reported that California Governor Gavin Newsom’s California Department of Public Health (CDPH) formally issued emergency regulations to ban 90-95% of hemp products on the marketplace, including manufacturing or selling them in California.

The Roundtable said, “We strongly believe that his action violates state and federal law and have filed comments to that effect today.” Among the issues the Roundtable outlined:

There’s no "emergency" in this case. “Governor Newsom may wish to ban hemp products, but he hasn’t done anything in the three years since they have been legalized, and the legislature has repeatedly blocked his efforts to ban hemp via statute.”

CDPH emergency regulations “completely fail to prove an ‘emergency’...they missed the window for banning hemp products on an emergency basis.”

CDPH violates federal law that defines “hemp” as 0.3% or less delta-9 THC on a dry weight basis.

The Roundtable agreed with Governor Newsom that hemp products must be “robustly regulated and kept out of the hands of children” but said this latest move bans “nearly all hemp products for purchase by adults, including most non-intoxicating products—even products that are manufactured in California but not intended for sale to California consumers.”

For those interested in following the regulatory efforts at the state level, and staying informed on the U.S. Hemp Roundtable’s Calls to Action, follow their page: https://hempsupporter.com/state-action/.

Another pressing issue on the regulatory front: efforts to age-restrict access to certain supplements linked with sports nutrition and weight management. At the Naturally Informed virtual conference Stress & Mental Wellness: Mastering the Market, this topic is being addressed by a panel of industry experts who will share the state of the science on minors, supplement use and mental wellness, along with the current regulatory status, potential big-picture impacts for the natural products industry, and what industry members can do to safeguard access to supplements. Save your seat to join the conversation or register for on-demand access. This is just one of the pressing topics that will be covered during this three-day event, and you won’t want to miss out on the insights and education that can help strengthen the industry overall while helping you grow your business.