USA: Delta-8 THC generates more than 2 billion dollars in sales

Delta-8 THC products have seen a significant increase in popularity in the US over the past two years, resulting in over $2 billion in sales as an alternative to “traditional” cannabis. according to a report from the cannabis analysis company Brightfield Group, the growing popularity of Delta-8 THC products is causing the rest of the cannabis industry to take notice and take action.

Delta-8 THC is a hemp-derived cannabinoid that is alleged to produce psychotropic effects, but milder than the traditional Delta-9 THC found in cannabis. Delta-8 THC is naturally found in small amounts in the cannabis plant, but commercially available products are created by chemically converting CBD into the Delta-8 THC molecule.

Products with Delta-8 THC became available in the wake of the 2018 Farm Bill, which legalized the cultivation of hemp with a THC level of less than 0,3% at the federal level in the US. However, legalization has led companies to produce a wide range of products containing so-called non-psychoactive minor cannabinoids, such as CBG (cannabigerol) or CBN (cannabinol), but also other cannabinoids that have milder psychotropic effects than Delta- 9 THC. Under the Farm Bill, these are not categorized as illegal as they are derived from hemp. However, there have been safety concerns with Delta-8 and similar products, as the conversion of CBD molecules to Delta-8 THC molecules requires a specialized chemist to ensure its safety. Improper or imprecise techniques can lead to high levels of impurities in the final product. In addition, the health effects of consuming these impurities are still not very clear or well known.

Users look for alternatives to banned THC
According to Forbes, the report notes considerable overlap between users of CBD, Delta-9 THC, Delta-8 THC and other newly developed products based on other cannabinoids from hemp such as HHC. The report indicates that 35% of CBD users purchased hemp-derived psychoactive products in the last half of 2022. Furthermore, in states where cannabis is legal, nearly a quarter of users express an interest in purchasing Delta-8 in the future. As consumers are inclined to try new products, there may be a market shift to Delta-8 over time, particularly if the cost difference remains favorable for this to happen.

In states where cannabis is still illegal, Delta-8 has emerged as a cost-effective and affordable way to try psychoactive cannabis and can be obtained legally in stores or through online ordering, providing consumers with a 'legal' and less risky alternative to to obtain cannabis illegally.

However, the report notes that Delta-8's growing popularity in places where cannabis is still illegal could have a negative impact on support for its legalization. “If Delta-8 continues to gain popularity and build a base of support in areas where Delta-9 is restricted, legalization measures could see less public support and fundraising, thus delaying the federal legalization process in the US. USA”, the report reads.

Key differences between Delta 8 and Delta 9 THC. Photo: mg Magazine

Furthermore, there appears to be significant confusion between Delta-8 and Delta-9, the main psychoactive compound in cannabis, even in places where cannabis is legal. The report notes that retailers of Delta-8 products pose as dispensaries and fail to clarify that the compound is derived from hemp.

The report's authors also noted some changes in consumer behavior in the CBD market, which may give an idea of ​​how the Delta-8 market is affecting the industry. According to the Brightfield Group, there has been a decline in online purchases of CBD since its peak in November 2020, with a sharp drop in online sales seen from November 2021 (reportedly a 53% drop from the 4th quarter of 2021 to the 3rd quarter of 2022). During this period of decline, there was a 42% increase in purchases in vape shops e smoke shops, which provides more opportunities for consumers to be exposed to hemp-derived Delta-8 products. Since 64% of CBD users report using cannabis at least occasionally, these consumers may be inclined to switch to Delta-8 products as an alternative to THC.