Growth of CBD Products in Australia: Why Are They So Popular?

Over the past few years, CBD products have become incredibly popular across Australia. Items like CBD gummies or oils have become ubiquitous in Australian pantries. Each of these exciting wellbeing aids has origins in the hemp plant. They’re each extracted from this plant, making them rich in the cannabinoid CBD (cannabidiol), which is potently anti-inflammatory and relieves stress.

Although CBD is derived from hemp, it doesn’t get you stoned, which is part of its appeal. Instead of intoxicating you, it has many powerful advantages for improving your wellbeing, calmness, and overall health. In addition, you can find it in an incredible variety of mediums today, making it easier than ever to take. For instance, it’s commonly infused into tinctures, edibles, topicals, and vapes.

A combination of factors has driven CBD’s elevated status in Australia:

• Changes in the legality of CBD recently have supported its widespread availability and acceptance.
• Robust scientific research supporting CBD’s genuine health benefits, including more medical trials in Australia. 
• Increased social media awareness and advertising on CBD products, further reinforcing its upward demand trend.
• Evolving market trends and consumer behaviour have also significantly fueled the expansion of CBD product shopping in Australia.

The convergence of these factors has transformed CBD from a niche product into a mainstream health and wellness option around Australia. But how did it get to this position? Let’s dive into this intriguing growth story.

Why are CBD Products Popular in Australia?

Several key themes have contributed to and strengthened the demand, acceptance, awareness and desirability of CBD products in Australia. These are:

• Shifts in CBD’s legality
• More significant research on the product’s safety and effectiveness
• Increased focus and demand for natural wellness products
• Expanded interest as a result of increased social media coverage

Let’s take a look at each of these factors.

Shifts in Legality

In Australia, cannabis and CBD have faced historical prohibition due to stringent drug laws. However, the landscape has significantly evolved in the past decade. In 2016, the Australian Government sanctioned the controlled medical use of cannabis.

This opened its mass cultivation, production, and prescription for therapeutic applications. Medical cannabis legalisation was a pivotal government decision that catalysed the country’s development and availability of CBD products.

CBD Re-Classification (Legalisation)

In Australia, CBD (cannabidiol) was previously illegal until very recent years. As a cannabis extract, it is regulated by the Therapeutic Goods Administration (TGA) as a controlled substance. Initially, it was marked as a Schedule 4 substance since the time that medical cannabis was introduced. This means it requires a prescription for legal use. Things all changed for CBD in 2020. The Australian Government reviewed and updated laws regarding the Australian Register of Therapeutic Goods (which controls medications and drugs), making CBD products available in low-strength formulations (without needing a prescription).

In other words, they downgraded the restrictions on CBD products to allow consumers to purchase them openly. In turn, pharmacies could register to sell CBD over the counter without a prescription anywhere in Australia. This regulatory change has significantly increased the accessibility and availability of CBD products, leading to a notable expansion of the CBD market in Australia. 

Scientific Backing of Health Benefits

An increasing amount of reputable scientific research backs the powerful, therapeutic advantages of cannabidiol (CBD) on health, contributing to its surging popularity. Numerous studies suggest that CBD possesses therapeutic properties that are immensely beneficial for addressing various conditions, including:

• Chronic pain (e.g. from endometriosis or fibromyalgia)
• Anxiety and depression
• Epilepsy
• Chronic inflammation
• Arthritis
• ADHD and focus problems 

A range of clinical studies have comprehensively proven CBD’s capacity to inhibit seizures in people with epilepsy conditions. It can reduce seizure frequency, severity, and overall negative impacts. Best of all, these effects are entirely founded in science. CBD’s other health benefits vary in the availability of their evidence and the depth or extent of studies. Yet more wide-scale, robust trials continue to be run on it over time.

Consumer Education

As scientific evidence mounts, public education and understanding of CBD’s actual benefits have grown. Educational campaigns, media coverage, and testimonials from medical professionals have played a crucial role in informing the public. For instance, multiple research bodies in Australia, such as the Lambert Institute at Sydney University, specialise in the study of cannabis’ therapeutic applications. 

This increased institutional advocacy and support has helped to demystify CBD, dispelling misconceptions and encouraging more people to trust CBD products. This positive trend in Australia will continue as more people uncover its powerful abilities to support their wellbeing.

Consumer Demand Evolution

Australians are incredibly health conscious and are increasingly focused on improving their daily vitality. This cultural trend has been a major undercurrent for Australia’s rising demand for CBD products. People are particularly attracted to natural wellness supplements that won’t cause side effects or long-term health risks. CBD perfectly fits this renewed interest in plant-based, holistic, natural aids for wellbeing. Consumers who use products like:

• Fish oil (EPA and DHA)
• Multivitamins 
• Creatine or whey
• Ginseng extracts
• Curcumin
• Ashwagandha root

They will likely pick up CBD as a similar natural extract for their supplementation routine.

Diverse Product Offerings

Australia’s demand for CBD products is also increasing because of the vast array of options consumers can buy. Alongside traditional CBD oils, there’s a diverse selection of: 

• CBD-infused candies and edibles
• Capsules
• Topicals like CBD creams or balms
• Beverage infusions

This wide variety empowers individuals to select products that best complement their usage preferences and health aims, whether they prefer to ingest CBD or apply it to their skin.

Increased Stress and Anxiety

Amid the COVID-19 pandemic, economic downturns and rising living costs, there have been unfortunate increases in the average Australian’s stress and anxiety levels. More people are struggling to make ends meet and finding the pressures of modern life stressful. It’s increased interest in natural supports that help to alleviate, prevent or reduce stress.

CBD products are the ideal remedy in many such instances. Being anxiolytic, CBD has powerful calming effects that allow individuals to decompress, relax, plus avoid anxiety mentally. This has made CBD products an attractive option for Australians seeking stress support during these turbulent times.

Social Media

The growth in Australian awareness and interest in CBD products can also be attributed to their extensive media coverage, including both traditional and social media. 

• News stories
• Celebrity endorsements
• Health and wellbeing blogs
• Expansive online information
• Advertisements online

Each has played a significant role in driving this uptick in CBD awareness. 

These factors have increased Australians’ familiarity with CBD products, stimulating mainstream acceptance. Endorsements from influencers, health practitioners and positive testimonials online have also played a pivotal role in moulding public perception and accelerating consumer interest.

Influencers

Moreover, the rise in advocacy from social media celebrities or influencers has been another critical factor in promoting CBD products within Australia. Influencers in the health, fitness, cannabis, and wellness sphere frequently share their experiences with CBD or offer product recommendations, highlighting the rich benefits of these products to vast networks of social followers.

Such endorsements hold substantial sway over consumer behaviour, as followers often place a high level of trust in the recommendations of the influencers they admire. It’s a more organic, grassroots, person-to-person way to disseminate information and trust for CBD.

E-Commerce

Demand for CBD products has also caused more stores to move online and expand their e-commerce presence. This trend was further reinforced by COVID lockdowns in Australia and social distancing measures, which necessitated online shopping. E-commerce platforms have simplified the process for consumers to explore CBD product selections worldwide, all from the comfort of their homes.

It’s become the preferred method for researching, comparing, and purchasing these items today in Australia. Notably, this shift towards online sales has opened avenues for smaller, niche CBD brands to reach a broader customer base.

Challenges for Australia’s CBD Market

While its growth has been a stellar commercial success story, the Australian CBD market still faces problems and obstacles as it embeds further into the mainstream.

Regulatory Hurdles

Despite its increasing popularity, the CBD industry in Australia is facing significant regulatory challenges. Only low-dose CBD oil can be purchased legally over the counter in pharmacies, and high-strength products require a prescription. Similarly, most other forms of CBD aren’t fully legal and can only be bought online. When CBD becomes fully legalised isn’t yet clear. However, there are promising signs it will eventually be, with the Australian Government already assessing the tax revenue and societal benefits it would bring.

CBD gummies, topicals, vapes, edibles, and drinks won’t be found on shelves near you in Australia until laws are updated. The complexity and rapidly evolving nature of Australian CBD regulations are tricky to keep up with. It’s a key challenge for pharmacies, CBD shops, and other wellness product stores in Australia. Yet, providers must solve it to stay on top of the rules and avoid legal risks.

Quality and Safety Problems

With the rapid growth of the Australian CBD market, there is a growing concern about the quality and safety of the products sold. Not all CBD products are the same standard. There are many instances where products have less CBD than indicated or are contaminated with harmful substances like solvents. How this plays out and what the reaction might be from regulatory bodies in Australia has yet to be made clear. But there may be wide-scale reviews and crackdowns in the future.

Misinformation

While awareness about CBD is on the rise globally (including in Australia), there remains a need for better consumer education targeted at combatting misinformation. Some consumers may hold unrealistic expectations about the benefits of CBD and not understand its downsides. The cannabinoid can cause problems in some individuals with sensitivities.

Similarly, CBD certainly poses a risk for those who are already medicating with pharmaceuticals due to its potential to trigger adverse drug interactions. Providing accurate, unbiased and balanced information for consumers interested in CBD is vital. Moreover, encouraging medical assessments or consultation with doctors before using CBD needs to become the norm.

Future Trends

The future of the CBD market in Australia looks promising, with ongoing research, product development and innovation driving the industry forward. Scientists continue to explore new therapeutic applications for CBD, and advancements in extraction and formulation techniques are leading to the development of more effective, pure and advanced product formulations.

Full Legalisation

Alongside recreational cannabis, there is a growing push in Australia to legalise CBD products for consumers fully. This would help create a well-regulated ‘green market’ that provides greater oversight than the current stance. Such a move would further boost CBD product adoption as more Australians gain awareness and access to a range of cannabis-derived consumables.

As public acceptance grows and stigmas fade, the market for CBD products is likely to expand even further. New demographic groups, including those who may have been hesitant to try CBD, are expected to embrace these products as they become more mainstream. For instance, senior individuals who have traditionally stigmatised any products that originate from cannabis may shift their views when they realise the potential of CBD to mitigate arthritis in their joints or support the alleviation of sleep difficulties. Legalisation (for CBD) may be in reach with these cultural shifts in the coming years.

Conclusion

In Australia, CBD products are well and genuinely transitioning into the mainstream. Their popularity has boomed, with more Australians than ever realising the powerful potential of these natural hemp extracts. But this wasn’t always the case. Historically, CBD and other cannabis extracts have been accused, stigmatised and prohibited legally. Yet this has all changed in recent years. CBD products have seen soaring growth in popularity. A few factors can explain this immense surge in demand and change in perception. 

Legal reforms, including the 2016 approval for medicinal cannabis prescriptions, the 2021 rescheduling of CBD oil, and regulations on its sale, have raised accessibility. More individuals also trust these products; now, the Government endorses them, and they are no longer illegal. In addition, expansive clinical research into CBD’s benefits in Australia and abroad has helped to back its lengthy list of purported health uses. Greater public awareness through media coverage of CBD products, influencer endorsements, and educational campaigns that help prevent misinformation has underscored these trends.

Health-conscious Aussies are naturally drawn to CBD extracts as a logical item to include in their daily well-being protocols or supplement stacks. The commonality of this has only grown with the rising living stresses and financial pressures now placed on Australians due to economic headwinds. Finding practical, safe, effective relief for stress and anxiety via products infused with CBD is a helpful tool more are adding to their anti-anxiety toolkit.

References

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