Delta-8 THC is in strong market demand

According to the report Hemp Benchmarks As of January 2021, there is growing demand for the cannabinoid Delta-8 THC (Tetrahydrocannabinol), which is not derived from hemp plant material, but synthesized from extracted CBD, which is helping to drive sales of crude hemp oil. CBD, CBD isolate and some retail CBD products.

With the rise in popularity of Delta-8-tetrahydrocannabinol (D8 – THC), specialist company Hemp Benchmarks has seen a consistent drop in prices. While Delta-8 THC sales volumes remain a small proportion of CBD products, this is the fastest growing product in the hemp sector in the January report. A Tennessee processor told Hemp Benchmarks that they've seen about 20% of their CBD customers switch to Delta-8 THC.

This growth is notable due to the many unresolved questions about Delta-8's legality. The compound is a psychoactive cannabinoid, meaning it can leave users with psychotropic effects, giving rise to various legal problems. Recently proposed regulations by the Drug Enforcement Agency (DEA) would classify Delta-8 THC as a Class I controlled substance, which would make it illegal at the federal level. For this reason, laboratories and manufacturers are keeping a narrow and realistic eye on the true market potential of Delta-8 THC.

What is Delta8 THC?

According to the National Cancer Institute, Delta-8-THC can be defined as “a tetrahydrocannabinol (THC) analogue with antiemetic, anxiolytic, appetite stimulant, analgesic and neuroprotective properties. Delta-8-THC binds to the cannabinoid G-protein-coupled CB1 receptor located in the central nervous system. This agent exhibits a lower psychotropic potency than Delta-9-THC, the primary form of THC found in cannabis.” Delta-8-THC is therefore chemically different from Delta-9-THC by only a few atomic bonds.

Uncertain future in an unstable market

The uncertainty extends to the lack of defined standards on compliance and purity of products containing Delta-8 THC. The Hemp Benchmarks report cites an email from Stephen Crowley, Compliance Specialist and Hemp Processing Technician at the Oregon Liquor Control Commission, who wrote that one of his concerns is “what else might be in these products besides Delta? -8 THC”. This includes a number of chemical impurities that can be generated during the isomerization process.

If the proposed DEA regulations go into effect, Delta-8 THC synthesized from CBD would be illegal and its popularity among manufacturers would be a major hurdle. Until regulations are finalized, The Hemp Benchmark report predicts that some processors may be considering the idea of ​​synthesizing Delta-8 THC from their surplus CBD and selling it at significantly higher prices in order to recoup losses from drop in prices of CBD and CBG extract.

The Delta-8 consumer market may correlate more strongly with the Delta-9 THC demographic, as both are psychoactive, which may limit Delta-8's appeal to the broader CBD consumer base. As a “new cannabinoid”, education and promotion of Delta-8 THC will be necessary to ensure that it does not suffer the same fate as CBG, which has not generated enough interest to eliminate excess stocks of what was supposed to be the booming hemp segment. From February to August 2020, the price of CBG biomass dropped by an impressive 82 percent.

Delta-8 THC is currently a bright light in a shaky market. Whether or not it can sustain this upward trajectory depends on how the regulating wind blows, once the gray areas in the 2018 Farm Bill are clarified about synthetically derived forms of THC. Until then, the controversial compound is making its way into all sorts of products on the hemp market and bringing in big bucks for those willing to take a risk in an uncertain future.