European CBD Market Reshaped by Novel Foods Regulation
The European cannabidiol (CBD) industry is undergoing a significant contraction, with many early market participants exiting or scaling back operations. This shift is largely attributed to the implementation and ongoing challenges of CBD novel foods regulation across the continent, according to a report by Hemp Today. What began as a regulatory framework designed to ensure product safety has evolved into a commercial challenge, leading to the disappearance of hundreds of companies that entered the sector during its initial expansion.
In the United Kingdom, for example, nearly 500 companies were once associated with approximately 12,000 products on the Food Standards Agency’s (FSA) CBD novel foods list. Analysts estimate that around half of these companies have since ceased operations or withdrawn from the process. The extended timelines and scientific review requirements imposed by the UK FSA, as previously reported by Hemp Gazette, have compounded operational pressures on businesses.
Regulatory Delays and Market Dynamics
The delays inherent in the UK’s FSA process have been a significant factor. Companies faced prolonged periods of uncertainty, awaiting scientific reviews and toxicology assessments that remain unresolved for a substantial portion of the sector. By the time the FSA process began to solidify, the broader European CBD market was already experiencing a downturn following a period of rapid growth, resulting in an oversupply of products and subsequent price declines.
Initially, the UK market saw consortium-style applications to the FSA, where numerous brands pooled resources for shared toxicology and scientific data packages. A notable example was the Association for the Cannabinoid Industry (ACI) consortium, which included companies such as British Cannabis, Charlotte’s Web, and Dragonfly Biosciences. However, as the novel foods process extended and costs escalated, this collaborative model gradually diminished. Many smaller brands that participated in these shared applications have either withdrawn products, disappeared, or encountered financial difficulties.
Concurrently, the European Food Safety Authority (EFSA) in the European Union has tightened safety expectations for ingestible CBD. The EFSA has paused assessments due to unresolved toxicology questions, further narrowing the commercial pathway for these products. This has effectively dismantled the previous low-barrier entry model that allowed many smaller brands to enter the market via white-label and contract manufacturing arrangements during the late-2010s CBD surge, when private-label tinctures, capsules, and edibles became widely available with minimal regulatory hurdles.
Company Attrition and Global Market Pressures
The market shakeout is also being exacerbated by broader global conditions. The CBD market appears to be entering a second phase of oversupply, with the regulatory upheaval in Europe and enforcement actions against CBD-derived intoxicating hemp products in the United States coinciding with persistent oversupply from China. Reports indicate that supply continues to outpace demand, particularly for CBD isolate, leading to unsold inventories, falling prices, and stalled transactions.
Several prominent CBD companies and brands have withdrawn from or been removed from the FSA process in the UK:
- Charlotte’s Web/Savage Cabbage: The FSA’s November 2025 update removed over 30 products linked to joint applications from the public CBD list. Savage Cabbage, a UK distributor and Charlotte’s Web’s official UK/EU partner, had an additional 22 products removed. Companies House, the UK government’s corporate registry, shows a proposal to strike off Savage Cabbage, and court filings related to its parent, Cannim Group, described the business as “borderline insolvent.” Publicly traded Charlotte’s Web (based in Colorado) reported approximately US$30 million in losses in 2025 against flat revenues of about US$50 million.
- JM Wholesale: This UK distributor and wholesaler lost more than 300 of its approximately 700 products under review following an FSA purge in January 2023. The company, which supplies retailers with white-label, distribution, and drop-shipping services, faced financial difficulties in 2026 amid tighter UK vape regulations and is now listed under insolvency protection by Companies House.
- British Cannabis: One of the UK’s larger CBD operators, British Cannabis had about 50 products removed from its initial submission of approximately 1,500 products. The company is a white-label supplier for brands such as Canabidol and ACCESS CBD, and also operates in the UK medical cannabis sector.
- RX Pharmatech: While roughly 1,300 of its products remain under review with only 10 removed, the company itself has largely disappeared following the collapse and breakup of parent 22nd Century Group’s hemp and cannabinoid division. 22nd Century Group, a U.S. tobacco and biotech company, acquired RX Pharmatech in 2023 through its hemp subsidiary, GVB Biopharma. After significant losses and a strategic retreat from the hemp sector, 22nd Century sold GVB, RX Pharmatech, and related assets to a newly formed entity, leaving the long-term status of the RX portfolio uncertain.
- Jersey Hemp: This company had only seven CBD products in the FSA’s review. Despite winning a 2024 legal case against the UK Home Office regarding the import ban of its products due to trace THC, Jersey Hemp stated that losing access to the UK market as a result of the lawsuit forced staff layoffs and equipment sales, and it has not regained a market presence.
Disclaimer: This article is for informational purposes only and does not constitute medical advice. Hemp Gazette does not provide medical recommendations, diagnoses, or treatment plans. Always consult a qualified healthcare practitioner before making any decisions regarding your health or any medical condition. Statements concerning the therapeutic uses of hemp, cannabis, or cannabinoid-derived products have not been evaluated by Australia’s Therapeutic Goods Administration (TGA). Medicinal cannabis products in Australia are accessed via prescription pathways under TGA regulation.
