Editor’s Note: This article on CBD in Spain is a continuation of our recent series on CBD and hemp around the world. See more in our articles on CBD in Canada and CBD in Uruguay. -KO

Spain is one of the most progressive cannabis hubs in Europe, with a network of hemp farms. grow shops and cannabis social clubs throughout the country. Spannabis, which took place this year from March 15 through March 17, is the largest cultivator tradeshow in the country. However, the absence of CBD oil there is an example of the regulatory turmoil that’s currently frustrating the European market.

Unsurprisingly, the concept of using cannabis or CBD as preventative healthcare is still relatively new in Spain, and got little mention at Spannabis where the focus is on grow ops and gadgets. However, at this year’s event, “education” and “social responsibility” were the buzzwords on everyone’s lips, and hemp was making its presence felt in new ways.

IS CBD OIL LEGAL IN EUROPE?

In summer 2018, the EU notified the industry through the Novel Food Act, which places restrictions on any food items not in regular use prior to 1997, that it was no longer legal to sell CBD oil as a food supplement in Europe. In September, the organizers of Spannabis sent out an email announcing that CBD oil for human consumption was banned from the event though hemp seeds and skincare products are allowed in line with EU guidelines.

The EU’s Novel Food Act is not, however, legally binding, leading to disparities across EU countries, as some choose to implement the guideline while others ignore it. The lack of regulation means the market looks different in each country. Switzerland is leading the pack with almost 600 CBD companies selling domestically and abroad. In Italy and Austria, consumers are going crazy for hemp flower as a substitute for tobacco. It’s possible to buy CBD oil in pharmacies or health food shops in some member states, but not Spain.

“Spain is one of the drivers of the CBD market in Europe, but right now, self-regulation is guiding the industry,” explains Jaime Muñoz of Natureight, a CBD manufacturer based in Holland with offices in Spain, “and everyone continues to sell in spite of the risks because consumer demand is so high. That’s the point, consumers want this product, and the regulation needs to catch up with the market.”

A recent report from the Brightfield Group predicts that the EU CBD market will grow by up to 400% over next five years, meaning it could be worth €1.7 billion (almost $2 billion) by 2023. In line with the recent World Health Organization recommendation to reclassify cannabis, the European Industrial Hemp Association (EIHA) is campaigning to update the Novel Food Act. The EIHA presented a proposal for the regulation of the European hemp industry to the EU Commission on March 12th.

“We asked for clear rules to be put in place in order to facilitate the growth of the industry across Europe,” confirms Lorenza Romanese, director of the EIHA, adding, “What’s most important is to let the market choose the competitors. Plus, Europeans naturally prefer to buy locally so if we take the right steps, hemp offers the chance to create cottage industry producing premium local products.”

CBD IN SPAIN: CHANGING THE CONVERSATION

Though the Spanish parties Cuidadanos and Podemos are eager to follow Canada’a legalization model, Pedro Sanchez, Spanish prime minister has made it clear that, for now, he has “bigger problems” than cannabis. On top of that, the Spanish minister for Health, Maria Luisa Carcedo, announced last November that there’s “no scientific evidence” to back the therapeutic use of cannabis.

So while cannabis is fast becoming a wellness niche in other progressive markets, it remains the domain of an underground culture made up of clandestine growers and stoners in Spain, as evidenced by the clouds of smoke choking the halls of Spannabis, and the reggae on blast outside on the patio. CBD is, however, changing the conversation.

“In Spain, cannabis users can access THC through the social clubs, so of course that’s what they’re going to choose,” explains Marc Selan, president of Organic Oz cannabis social club, Barcelona. “I’ve started offering CBD strains in my club as a way to talk about the medical benefits of cannabis. Moving forward, it’s all about education.” Selan says novice users typically choose CBD strains while seasoned users want choice.

Issac Sunyer, sales director with Alchimia Web, an online seed bank, agrees that buyers of their CBD strains are a new market. “We’ve built up a catalogue of more 1600 strains to provide consumers with choice, and have been selling CBD strains for five years,” he says. “We see that buyers of CBD strains tend to be older and are not your typical cannabis user, which is why education is so important. Correct product labeling will be key to brand success in coming years.”

Alchimia strikes a chord with both novice and seasoned users by harnessing hemp to switch the conversation on cannabis to wellness. Their offices in Figueres are built with hempcrete and feature a Zen garden to promote the brand’s message: Growing Happiness. Staff are offered flexible working hours, and in-house initiatives like starting the day with a hug are encouraged.

HEMP LEADS THE WAY TO THE WELLNESS MARKET

Swaran Singh of iGreen Swiss, one of many new ventures visiting Spannabis, believes that socially responsibly brands will lead European hemp and cannabis market into the future, as “it’s what the new generation of consumers demand.” He also believes CBD is “just a phase.”

“In two to three years time, 80 per cent of companies will be gone, as the market consolidates,” he says. “Right now, Germany is setting the example for regulation because they have the trust of government and that’s what we need in the rest of Europe to win market confidence.”

“CBD has opened the market but medical cannabis is the real business,” he continues, adding a warning: “But it’s getting expensive to get in. It can take up to five years to yield a good crop, and the final product must be top quality, so it’s a huge investment. At the moment, investors are losing money, which is causing a lot of uncertainty.”

Daniel Musters, founder of CTgrow, a designer of environmental control systems for indoor grow ops, agrees that investors are restless, and governments are making it more difficult to get into the industry now because “they want to make cannabis clean.”

“What hemp and CBD can do is change the stigma around cannabis,” he says, “And that’s already happening with these new hemp projects that are springing up around Europe. We just designed a system for a project in France, and it’s amazing. The whole community is involved, and it’s transformed the local economy because people are working in the greenhouses, making oils, creams, food, you name it. Hemp has injected new life into this town.”

Back on the pavilion at Spannabis, the presence of hemp is more subdued though there are long lines at the Canna Beer stand and lots of people munching on hemp chips. In the halls, the handful of CBD companies includes Greenmotiv, a Spanish distributor of creams and oils for topical use, and Naturflow, another Spanish company selling hemp balms, both targeting the wellness market.

In amongst the crowd are signs of the health and wellness market that’s coming. Lisa Guerra-Watson is an ex-real estate agent with an autoimmune condition who’s getting into the sector to educate women on the health benefits of a cannabis lifestyle and has created a brand called Seedella.

“This is an amazing event,” she says of Spannabis, “And it’s fun to be able to smoke a joint but I’m surprised by how little focus there is on the health benefits of cannabis here. We need a second event for that.”

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