After years of development, cannabis CBD has gradually become an important growth point in the industry after the weakness of e-cigarettes. Industry insiders said that CBD atomizer manufacturers are doing brisk business, far above the average level of the industry.
“E-cigarette business has been weak this year, and orders compare to the list. This is what a Securities Times reporter said when he interviewed a supplier of e-cigarette batteries.
It is understood that recent Simol international stock price has been relatively weak, there is a reason for the industry is not booming. Simor to the international giant OEM, affected by the industry environment is relatively big.
Disposable e-cigarettes have been a flashpoint for the industry in recent years, gradually replacing e-cigarettes as the mainstream overseas, but after continuous growth, there has been a recent slowdown.
“The recent hot spot is cannabis CBD products,” said Li Youqiang, an expert in the e-cigarette industry. After the year, the pattern of the e-cigarette industry has changed obviously. Some manufacturers are rising, while others are declining. He believes CBD products will continue to sell well, leading to some companies seizing the opportunity.
CBD, also known as cannabidiol, is a compound naturally found in cannabis resin flowers. It is one of more than one hundred “plant cannabinoids”. Unlike THC, CBD does not cause the hallucinogenic effect produced by THC and has no side effects of THC. In recent years, CBD has gradually been recognized by the public as low-concentration CBD appears in health care products, food and skin care products. CBD has analgesic properties and can also reduce anxiety, panic, and has fewer side effects associated with marijuana than many over-the-counter and prescription painkillers. The risk of dependence is also lower.
Due to the easterly trend of marijuana legalization, marijuana products have been promoted rapidly and recognized by consumers in recent years. Inhaling CBD vaping oil through atomizing equipment is one of the consumption methods. Its principle is similar to that of vaping, but because it does not contain nicotine, it does not need to accept strict supervision as tobacco products, and it does not need to pay high consumption tax, so manufacturers have greater freedom. This is a separation of the atomized product from the tobacco.
According to today’s news, in 2017, CBD sales in the U.S. plantation extract market was only 7.58 million dollars. With the sales of health food and ordinary food containing CBD components rising sharply, the total sales of CBD products in the U.S. reached 23 million dollars in 2019, and 53.89 million dollars in 2020.
However, some governments have reservations about CBD products. For example, the government Laboratory of Hong Kong Special Administrative Region of China pointed out in its proposal that typical CBD isolates used to produce CBD products contain 0.02 to 0.03% THC. Even if the products are labeled as THC free, a small amount of THC can be found in CBD according to the purification level.
According to the proposal, CBD products inevitably contain THC levels. Data show that CBD products submitted to government laboratories of the Hong Kong Police Force and Hong Kong Customs in China contained 42.5 percent THC in the first four months of 2022. Authorities in Hong Kong, China, noted that when CBD interacts with water and air, it can break down into THC, even under normal storage conditions. The risk of converting CBD to THC is high, up to 82 percent when CBD is chemically processed or added to e-cigarettes, according to the document.
Since 2019, the Hong Kong Special Administrative Region government of China has found THC in more than 3,800 samples of food, health food, oral oils, e-liquids or additives, and skin care products.
In the US market, CBD industry has also been suppressed by the policies of some state governments. Many enterprises are researching CBD alternative raw materials, and products centering on other rare components of industrial hemp such as CBG and CBN have begun to appear. These two components are not regulated by the US law at present.
In the domestic market, on May 28, 2021, the announcement of the State Drug Administration on updating the list of prohibited ingredients of cosmetics (No. 74, 2021) officially listed cannabidiol, cannabinol, hemp seed oil and hemp leaf extract as prohibited ingredients of cosmetics, directly ending the development of CBD in China.