The CBD market is growing fast within consumer packaged goods. Rules keep changing, quality control is uneven, and more people are buying these products every year. Even with wide availability, many people are still unsure how CBD is regulated or what it does. This confusion creates both chances and real risks. Below, we explain how the rules work, why product quality matters, and how shoppers can protect themselves.
What Is the CBD Market?
The CBD market includes all products that use cannabidiol (CBD), a compound from the cannabis plant that does not get you high. Unlike THC, CBD does not cause intoxication, which is why it appears in many everyday items.
After the 2018 Farm Bill removed hemp and hemp seeds from the DEA’s list of controlled substances, hemp-derived CBD became legal at the federal level for non-food uses. This change, along with rising interest in wellness, led to a boom in CBD products.
Primary Uses and Products Containing CBD
CBD shows up in many formats: tinctures, oils, gels, capsules, edibles (gummies, drinks), vapes, and topicals (lotions, balms). It has even been added to items like toothpaste and sportswear.
People use CBD for many reasons. Here are common uses from surveys:
| Reason | Share of Users |
|---|---|
| Pain relief/management | 58% |
| Stress, anxiety, or depression | 43% |
| Better sleep | 31% |
| Curiosity/trying it out | 19% |
| Pets | 13% |
| Skin health/acne | 7% |
| Neurological disorders | 4% |
| Heart health | 3% |
| Cancer symptom relief | 3% |
Keep in mind that research on many claimed benefits in consumer products is still limited. The FDA has approved only one CBD-based drug, Epidiolex, for certain seizure disorders.
Market Growth and Consumer Demand Trends
The CBD market is expanding quickly. It was valued at $2.8 billion worldwide in 2020 and is expected to grow about 21.2% per year from 2021 to 2028. In the U.S., the market was about $18 billion in 2022 and is forecast to more than triple over the next decade. Interest in non-traditional health options is a major driver.
Public understanding is low, though. In 2021, Americans rated their CBD knowledge at 3.3 out of 10. About 74% either think CBD is federally regulated or are not sure. Many people still confuse CBD with marijuana (39%) or believe it can get them high (51%), even though CBD itself is not intoxicating.
Inflation has hurt some retail sales in 2023. Across drug, food, mass, and dollar stores, sales fell about 10%. Vitamins and supplements made with hemp CBD-nearly half of total sales-dropped 9.5%. Still, some areas grew, including dog food and drinks. Hemp seltzers, soft drinks, and sparkling water jumped by more than 50%. This shows a market that keeps shifting with the economy and shopper tastes, with more new products likely in beauty and personal care.
Is CBD Legal? United States and Global Perspectives
CBD law is confusing. Rules differ across federal, state, and international levels. The 2018 Farm Bill helped at the federal level for hemp, but using CBD in consumer goods is still a tangled issue.
Federal Laws and Regulations for CBD
Federal law depends on the source. The 2018 Farm Bill defines hemp as Cannabis sativa L. and any part of it (including extracts and cannabinoids) with no more than 0.3% delta-9 THC by dry weight. Hemp is no longer in the Controlled Substances Act, so hemp-derived CBD is federally legal.
But that does not mean all CBD products are allowed. The Farm Bill kept the FDA’s power under the Federal Food, Drug, and Cosmetic Act (FD&C Act). Because CBD is the active ingredient in an approved drug (Epidiolex), the FD&C Act generally does not allow CBD to be added to human or animal food or marketed as a dietary supplement unless certain exceptions apply. The FDA says these exceptions do not apply to CBD or THC. The FDA also said in January 2023 that current food and supplement rules do not fit CBD and that it will work with Congress on a new path. This leaves a gap between federal law and the booming market for CBD foods and supplements.
State-by-State Differences in CBD Legislation
With no clear federal path for CBD in foods and supplements, states made their own rules. The result is a patchwork. Some states allow CBD in food (for example, Colorado, with state rules). Others restrict or ban certain products. Some states also set their own rules for items like tinctures or vapes.
For companies, this patchwork makes interstate business hard. For shoppers, it means different products and protections depending on where they live. Uneven enforcement adds more confusion and uneven safety.
International Regulations and Market Entry
Outside the U.S., rules also vary. Some countries allow CBD with strict standards on quality and labeling. Others treat it more like marijuana or require a prescription. Companies looking to sell abroad must watch for THC limits, allowed product types (like oils, edibles, or cosmetics), and import/export rules. Because there is no single global standard, some markets are open while others are hard to enter. Legal and scientific checks are needed before launching products in new countries.
Who Regulates CBD? Key Agencies and Their Roles
U.S. oversight involves several agencies. The FDA and FTC play leading roles, with the USDA, DEA, and state authorities also involved.
| Agency | Main Role with CBD |
|---|---|
| FDA | Product safety, labeling, and drug rules; stance on CBD in foods/supplements |
| FTC | Advertising claims (truthful, not misleading, backed by science) |
| USDA | Hemp cultivation programs and compliance with THC limits |
| DEA | Controlled substance enforcement; import/export issues for cannabis items |
FDA Oversight: Enforcement and Policy Updates
The FDA oversees cannabis and cannabis-derived products, including CBD, through its Cannabis Product Committee. It applies the same standards used for other FDA-regulated items.
A major point is CBD in foods and supplements. In January 2023, the FDA said current rules do not fit CBD and asked Congress for a new path. Since CBD is in an approved drug, the FD&C Act generally bars it from food or supplement use unless waived by regulation. The FDA has not issued such a waiver and has not seen evidence to change this view.
The FDA monitors the market and sends warning letters to companies that break the law, especially for unsupported medical claims. Since 2015, it has sent 81 warning letters. Targets include claims about treating diseases, opioid addiction, pain, COVID-19 lung problems, or shrinking tumors, and the illegal sale of CBD foods or supplements. The FDA and FTC have also warned companies about copycat Delta-8 THC foods that could harm consumers (warnings issued in July 2023 and July 2024). The FDA supports drug development for cannabis where proven safe and effective through the approval process.
FTC, USDA, and Other Regulatory Bodies
The FTC polices advertising. Claims must be true, accurate, not misleading, and backed by solid science, especially for health-related claims. Companies without good support can face FTC actions and state lawsuits. Some suits already claim overstated benefits or wrong CBD amounts on labels.
The USDA runs federal hemp growing programs under the 2018 Farm Bill and checks that hemp stays under 0.3% THC. The DEA still enforces controlled substance laws and may need to be involved for imports or exports involving cannabis materials. States also have their own agriculture and health departments with rules and enforcement, adding to the layered system.
What Are the Safety and Quality Concerns in the CBD Market?
Market growth has outpaced clear national rules. Many products vary in quality, and labels can be confusing. Shoppers can struggle to pick safe and consistent options.
Common Contaminants and Mislabeling Issues
Mislabeling is common. In one study of 84 CBD products, only 31% matched their CBD label claim. About 26% had less CBD, and 43% had more. Some products labeled “THC-free” still had THC, which could cause unexpected effects or failed drug tests.
Contamination is another risk. The cannabis plant can absorb heavy metals, pesticides, and other toxins from soil. Poor growing practices can move these into finished products. Some reports found synthetic cannabinoids in CBD oils linked to poisonings, and polycyclic aromatic hydrocarbons above recommended limits in certain items. Weak oversight means shoppers may face unknown ingredients and hidden risks.
Third-Party Lab Testing and Certification
Independent lab testing helps check quality and safety. Good brands send products to outside labs for potency and contaminant testing. Look for “full-panel” tests for each batch and, if possible, the raw materials. Reports should be from a respected, accredited lab and show that potency is close to the label (about 10% for most products, 20% for low-dose items) and that contaminants are not detected.
Be cautious: some reports are incomplete or even fake. Prefer reports less than a year old and with a QR code for easy verification. A Certificate of Analysis (COA) on the product page is a good sign. Be wary if a company says it only uses its own in-house tests.
Packaging and Labeling Requirements for Quality
Clear labels and safe packaging help protect buyers. Products should follow all labeling rules, use child-resistant packaging, and clearly show pack and expiration dates. Dosing directions should be clear. A batch or lot number helps with tracking. The full ingredient list should be present, plus a QR code that links to a third-party lab report.
Health warnings matter as well. The FDA warns that misleading claims may lead people to delay needed care. Labels should avoid unapproved medical claims or youth-focused marketing. Age checks for sales are wise. Because standard dosing guidance is still lacking, clear labels help people avoid taking too much.
How Is CBD Quality Controlled Across the Supply Chain?
Keeping CBD quality high takes work at every step: growing, extracting, formulating, and bottling. Each stage has risks and ways to manage them.
Source and Cultivation of Hemp Plants
Quality starts with the hemp. Because cannabis plants pull in substances from soil, clean farming is important. U.S.-grown hemp using organic methods is often preferred. Outdoor growing under natural light can support strong plants.
For best consistency, hemp from a single strain and single origin helps. States with good climates and strong hemp programs can offer better results. USDA-certified organic hemp lowers the chance of pesticides, heavy metals, and other contaminants entering the supply chain.
Extraction and Processing Methods
How CBD is extracted affects purity and safety. Clean methods remove unwanted compounds while keeping useful ones. Supercritical CO2 extraction is widely used because it avoids harsh solvents and can yield a clean extract with cannabinoids and terpenes that may work together (the entourage effect).
CBD isolate products should reach about 99% purity. Some solvent methods can leave residues or fail to remove impurities. Careful handling prevents breakdown of the extract. Companies that control the full process (not just white-label) often have better tracking and quality records.
Role of Ingredients and Additives
Formulation adds other ingredients to the extract. These should be safe and necessary. Avoid vitamin E acetate (linked to lung injuries in vapes), synthetic fragrances, artificial colors, parabens, synthetic cannabinoids, and unregulated supplements.
For vape products, a base of propylene glycol and/or vegetable glycerin is usually preferred. Short, clear ingredient lists are a good sign. Look for brands that share detailed lab reports showing no harmful compounds in the final product.
How Can Consumers Protect Themselves in the CBD Marketplace?
Buying CBD can be tricky because rules differ and quality varies. With the right steps, shoppers can reduce risk and pick better products.
Evaluating Brands for Transparency and Reputation
Research the brand. Good companies are open about their process from seed to sale, including where they grow hemp, how they farm (such as organic practices), and how they extract CBD. Check that they share who is on their team and their quality goals.
Look for strong reviews and quick, helpful support. GMP-certified makers with FDA-registered facilities show good manufacturing practices. Brands that control their own production (rather than only white-label) may offer better quality control. Industry membership and advocacy can signal higher standards. A money-back guarantee also shows confidence in their products.
Recognizing Reliable Lab Reports and Certifications
A third-party Certificate of Analysis (COA) is one of the most useful tools for buyers. A trustworthy COA should be:
- Full-panel: Includes cannabinoids and screens for heavy metals, pesticides, residual solvents, and microbes.
- Batch-specific: Each batch has its own report, dated within the last year.
- From an accredited lab: Independent, ISO 17025 accredited.
- Easy to find: Posted on the brand’s site with a QR code on the label.
Check that CBD and THC amounts match the label within a reasonable range and that contaminants are not detected. USDA Organic (for hemp) and NSF Certified for Sport (for THC-free products used by athletes) add extra assurance.
What to Look for on Labels: Ingredient, Potency, and Source
Labels should include:
- Full ingredient list: No synthetic fragrances, artificial colors, parabens, or unregulated supplements. For vapes, a propylene glycol and/or vegetable glycerin base is preferred.
- CBD and THC amounts: Listed in milligrams; THC must be under 0.3% for hemp products.
- Dosing directions: Clear use and frequency. Because there is no official daily limit, follow the label and talk with a healthcare professional if unsure.
- Hemp source: Where it was grown.
- Batch/lot number and expiration date: For tracking and freshness.
- Health warnings: No unapproved medical claims.
Follow the simple rule: start low and go slow. Small amounts of THC can affect some people, especially new users.
Reporting Adverse Effects or Violations
If you have a bad reaction to a CBD product or see false claims or labeling issues, report it. The FDA’s MedWatch system accepts reports from consumers and healthcare providers online or by phone. For cosmetics, you can also use MedWatch or contact your local FDA district office consumer complaint coordinator.
Reports help regulators spot problems, take action against risky products, and shape better policy. This shared effort pushes the market toward safer, clearer, and more honest products.
Emerging Trends and the Future of CBD Regulation and Consumer Protection
The CBD market is changing fast, and bigger policy shifts may be coming. Industry groups and lawmakers are working on ways to create clearer rules and better protections for shoppers.
Growing Industry Advocacy for Uniform Standards
Many CBD companies want national, science-based standards. The Consumer Brands Association has pressed the FDA to engage at the federal level for safety and has laid out what a federal framework should include. They back full funding for regulators and support bills like the Hemp Access and Consumer Safety Act.
Advisory groups and coalitions, such as the Coalition for Smart CBD Regulation, bring together companies to share best practices and support clear federal policy. These efforts show that responsible businesses want a safer, more reliable market that benefits consumers and honest brands alike.
Potential Legislative Changes and Impact on Consumers
The FDA’s view that current food and supplement rules do not fit CBD leaves a gap that Congress must address. In January 2023, the FDA asked for a new legal pathway, which will require new legislation. The timing is unclear, but change seems likely.
An updated Farm Bill is expected before there is a full federal framework for hemp and may place limits on intoxicating hemp products. Clear federal rules could help buyers by improving label accuracy, setting dosing guidance, cutting misleading claims, and standardizing testing. This would make it easier to find safe, consistent products and lower the risk of contamination. While writing new rules is complex, pressure from consumers and industry makes new laws more likely over time.