3 Major Market Risks of the CBD Nutraceuticals Industry

CBD Nutraceuticals Industry

As emerging research continues to demonstrate the many potential benefits of CBD and CBD-infused products, the cannabis industry has begun expanding its market of medicinal supplements. Nutraceuticals, or products that offer holistic health benefits without containing traditional medicine, now line the shelves at most hemp shops. Working with the medical market, however, comes with a slew of unique risks that the industry must face in order to avoid legal trouble and ensure long-term success.

1. Contaminated Products

Unlike traditional CBD products, CBD nutraceuticals contain a number of ingredients that may not have an obvious source. The combination of medicinal components and natural parts of the cannabis plant can lead to cross-contamination which may harm unsuspecting customers and manufacturers alike.

2. Adverse Side Effects

Taking any kind of medication or medicinal supplement comes with the inherent risk of adverse side effects. Nutraceuticals are no exception, but because of their relatively young age, there are still many unknowns as to how every unique body responds to their components.

3. Interference with Traditional Medicine

It’s critical that nutraceuticals be marketed as alternative or supplemental medicine rather than as actual medical products. Otherwise, customers may assume that they can replace necessary medication with CBD products, which should never happen without the consent of a physician.

Understanding CBD nutraceuticals market risks and taking the steps to mitigate them is crucial for any cannabis business looking to achieve lasting success. The combination of effective insurance policies and preventive measures affords every hemp shop the opportunity to make the most of this increasingly popular industry.

Insurance Risk Advisors