Brexit remains a great unknown. Now delayed until Jan. 31, 2020, one among the few certainties is that it has a huge potential impact on UK industries operating in Europe, and vice versa.
While the UK’s CBD market is huge, the fact that UK hemp farmers are prohibited from processing flowers and leaves from their crops requires them to rely on imports to sustain that market. A recent study from the UK’s Centre For Medicinal Cannabis priced the 2018 market as worth £300 million (347.7 million EUR), with double-digit compounded growth boosting it to £1 billion (1.16 billion EUR) by 2025.
Since most of the UK’s CBD supply is imported from Europe, Brexit offers disruption, if meanwhile some opportunities for producers from the Americas and Asia.
Conversely, Brexit will present new difficulties for the hundreds of current UK CBD brands to sell their goods in mainland Europe.
Verdict: Without changes to the UK’s restrictions on hemp processing, its CBD market is more likely to suffer from constraints on supply, and barriers in exporting.