Unprecedented Growth in the U.S. Hemp-Derived Cannabinoid Market

The U.S. market for Delta-8 THC and other hemp-derived cannabinoids has seen astonishing growth, expanding by 1,283% over just three years—from $200.5 million in 2020 to nearly $2.8 billion in 2023, according to a recent article in Cannabis Business Times. 

In the same article, 2023 saw a shift to hemp-derived Delta-9 THC. By the close of 2022, Delta-8 THC products accounted for nearly half of all hemp-derived cannabinoid sales, generating over $2 billion in revenue for U.S. hemp processors. Yet, Delta-9 THC products have since become more widely available, appearing online and in retail locations nationwide.

On a global scale, demand for CBD continues to accelerate. The CBD market was valued at $7.6 billion in 2023 and is expected to grow to approximately $36.6 billion by 2033, with a projected Compound Annual Growth Rate (CAGR) of 17.5%. according to market.us. This substantial growth underscores the rising global interest in hemp-derived cannabinoids for wellness and therapeutic use.

Amid this growth, there are numerous questions about the diverse range of hemp-derived cannabinoids available, including

• Delta 9 THC (Tetrahydrocannabinol)
• Delta 8 THC
• THCA (Tetrahydrocannabinolic acid)
• CBD (Cannabinol)

Each compound offers distinct effects and legal challenges, making it essential for consumers and industry professionals to understand their unique properties, production methods, and applications.

Each cannabinoid offers unique effects and benefits, making it crucial for consumers and producers to understand the differences between them. Common questions like "What is CBD?" "What is Delta 8 THC?" and "What is THCA?" illustrate how people seek to understand these compounds and their derivation and processing from the plant.

What is Delta-9?

As the most widely recognized cannabinoid, Delta-9 THC is well-known for its psychoactive effects, often associated with the “high” produced by cannabis.

With the recent market boom, more people are asking, "What is the difference between Delta-8 and Delta-9?"

In chemical terms, Delta-9 THC has the formula C₂₁H₃₀O₂, identical to Delta-8 THC, though they differ in the positioning of one double bond. Patients who have prescriptions for Delta-9 THC can choose among various product types, including:

• Edibles: Items like gummies, baked goods, and chocolates. These are slower to take effect but provide long-lasting results.
• Tinctures: Liquid forms of THC are taken under the tongue, allowing for faster absorption.
• Flower or Buds: Smokable forms, though legal restrictions vary.
• Vaping Products: Inhalable options that offer immediate effects, although some states, like Texas, restrict their production and distribution.

How is Delta-9 Produced?

Delta-9 THC can be produced through a process called isomerization, in which hemp-derived CBD is chemically transformed into Delta-9 THC. Another method is distillation from hemp, allowing producers to retain Delta-9 THC in its original form. Products that meet the federal THC threshold of 0.3% by dry weight are legally permissible, though state laws vary.

What is Delta-8?

While Delta-8 is naturally present in small quantities in hemp, its availability on the market typically results from synthesizing Delta-8 THC from hemp-derived CBD.

Known for its milder psychoactive profile compared to Delta-9, Delta-8 THC has seen rising popularity among consumers seeking relief without the intensity of Delta-9 THC.

It’s commonly available as:

• Edibles: Popular items include Delta-8 THC brownies and gummies.
• Tinctures, Capsules, and Creams: Useful for those preferring non-inhalable options.
• Vaping Products: Oils or wax for fast-acting relief.
• Flower or Buds: Smokable forms, though legal restrictions vary.

Delta-8 THC is often turned to for its ability to help alleviate symptoms of chronic pain, nausea, depression, and more. Consumers commonly use it alongside other medications or as an alternative to opioids, particularly for chronic pain management.

How is Delta-8 Produced?

Delta-8 THC is synthesized through a chemical conversion process, where hemp-derived CBD is transformed into Delta-8 THC. This conversion is crucial, as Delta-8 is only present in trace amounts naturally. The production of Delta-8 THC requires careful refinement and testing to ensure purity and legality.

What is the Difference Between Delta-8 and Delta-9 THC?

Here’s the summarized version:

Chemical Makeup: Both Delta-9 THC and Delta-8 THC share the same chemical formula, C₂₁H₃₀O₂. The difference between them lies in the placement of a double bond within their molecular structures:

• Delta-9 THC has a double bond on the 9th carbon atom in the chain.
• Delta-8 THC has a double bond on the 8th carbon atom.

This small structural difference results in distinct effects and interactions with cannabinoid receptors in the body, giving Delta-9 THC a more potent psychoactive profile compared to Delta-8 THC.

• Origin: Delta-8 THC is typically synthesized from hemp-derived CBD due to its low natural concentration in hemp. In contrast, Delta-9 THC is more abundant and is naturally occurring in cannabis. However, hemp-derived Delta-9 THC products—those containing less than 0.3% Delta-9 THC by dry weight—can be legally sourced from hemp.
• Production: Delta-8 THC is a synthetic product created through chemical conversion processes, while Delta-9 THC can be directly extracted from cannabis. Hemp-derived Delta-9 THC is produced using hemp that meets federal THC limits, distinguishing it from cannabis-derived Delta-9.
• Legality: Delta-8 THC is federally legal when derived from hemp, although it is restricted or banned in some states. Cannabis-derived Delta-9 THC is only legal in states with cannabis legalization. However, hemp-derived Delta-9 THC products that meet the federal 0.3% THC threshold are permitted nationally, even though some states impose additional restrictions.
• Psychoactive Effects: Delta-8 THC is less potent, resulting in a milder psychoactive experience. Delta-9 THC, whether cannabis- or hemp-derived, is known for its stronger effects due to its higher potency and affinity for cannabinoid receptors.

What is CBD?

CBD has gained widespread recognition for its non-intoxicating effects and potential therapeutic benefits, especially for those seeking relief without a “high.”

As consumers increasingly prioritize health and wellness, CBD’s anti-inflammatory properties, among other benefits, have driven its market growth.

Available in both cannabis and hemp flowers or leaves, various extraction methods, including carbon dioxide and ethanol processes, isolate CBD from the plant.

CBD offers an accessible way for many to explore the health benefits through oils, creams, and tinctures.

How is CBD Produced?

CBD is typically extracted from the cannabis plant’s flowers or leaves. Producers use various methods, including carbon dioxide or ethanol extraction, to isolate CBD from other compounds. These techniques help maintain CBD’s purity, making it suitable for a range of health and wellness applications.

What is THCA?

THCA is a non-psychoactive compound naturally found in raw cannabis. Unlike Delta-9 THC, THCA does not bind to CB1 receptors, which means it does not produce a “high.” Its popularity has surged as more people recognize its potential health benefits, particularly for conditions like:

• Cancer
• Seizures (including epilepsy)
• Alzheimer’s Disease
• Cachexia

In its raw form, THCA can be legally sold in many states as long as it contains less than 0.3% THC. Careful cultivation and drying of the plant's buds help preserve THCA content, making it accessible in places where marijuana remains illegal.

How is THCA Produced?

THCA is obtained by cultivating and carefully curing raw cannabis buds to retain their THCA content. Since THCA naturally occurs in cannabis, it’s harvested before being converted into Delta-9 THC through heating or drying. This method helps maintain THCA’s non-psychoactive properties, allowing for broader legal access.

Legal Status of Delta-9 THC, Delta-8 THC, THCA, and CBD

The legal landscape for cannabinoids in the United States is shaped by complex federal and state regulations. Here’s a breakdown of the reasons behind the legal status of each cannabinoid:

Delta-9 THC

Delta-9 THC is the primary psychoactive compound in cannabis, known for its strong “high.” Under federal law, Delta-9 THC derived from cannabis is classified as a Schedule I substance under the Controlled Substances Act, placing it alongside drugs like heroin and LSD. This classification reflects federal concerns over its potential for misuse, even though it has recognized medical applications in certain states.

However, the 2018 Farm Bill created an exception for hemp-derived products, defining hemp as cannabis with less than 0.3% Delta-9 THC by dry weight. As a result, hemp-derived Delta-9 THC products that meet this criterion are technically legal at the federal level, though state restrictions still apply.

This threshold makes it possible for some manufacturers to legally produce low-THC Delta-9 THC products, but they must ensure potency remains below the federal limit.

Delta-8 THC

Delta-8 THC exists in a gray area of legality. While it naturally occurs in hemp, it’s present only in trace amounts, so manufacturers typically synthesize Delta-8 THC from hemp-derived CBD.

Since the 2018 Farm Bill legalized hemp-derived cannabinoids and did not explicitly ban Delta-8 THC, it remains federally legal, provided it’s derived from hemp and contains less than 0.3% Delta-9 THC.

However, many states have implemented bans or restrictions on Delta-8 THC because of its psychoactive effects, synthetic origins, and lack of federal oversight. Critics argue that Delta-8 THC products often contain impurities or residual chemicals from the manufacturing process, leading to safety concerns.

THCA

THCA is non-psychoactive in its raw form and does not produce a “high.” Since THCA is the precursor to Delta-9 THC, it can be legally sold in many states if derived from hemp and kept under the federal THC threshold of 0.3%. As a result, THCA is sometimes sold in states where cannabis is restricted, with consumers using it as a legal substitute that can be converted to Delta-9 THC through heating.

This legal loophole has made THCA popular in states where cannabis is still illegal. However, regulations are evolving, and some states have started to impose restrictions on hemp-derived THCA products, especially as they become more widely used as a cannabis THC substitute.

CBD

CBD is the most widely legal cannabinoid, thanks to its non-intoxicating effects and minimal regulatory scrutiny. Under the 2018 Farm Bill, CBD derived from hemp with less than 0.3% Delta-9 THC is federally legal. This legalization reflects CBD’s minimal psychoactivity and its recognized health benefits, making it appealing for medical and wellness use without the risks associated with THC.

CBD regulations still vary by state, and some states restrict certain forms of CBD products, especially in consumable items like food and drinks. Yet, its non-psychoactive profile has contributed to CBD’s broader legal acceptance compared to other cannabinoids.

Streamlining Hemp Operations with Technology

As both the cannabis and hemp industries in the United States grow, managing production, compliance, and customer engagement is increasingly complex. Flourish Software provides an integrated platform specifically designed to meet these challenges, catering to the entire cannabis supply chain.

This section provides an overview of Flourish’s software and its tailored modules, each serving a critical role in streamlining operations and ensuring regulatory compliance.

1. Cultivation Management

Flourish’s Cultivation Module supports operators through the entire plant lifecycle. From propagation through harvest, this module tracks plants by individual ID, ensuring compliance with state systems and providing insight into growth stages and yields. Users can group plants, monitor their health, and document cultivation activities with precision, which not only streamlines reporting but also helps manage cultivation costs and predict outputs more effectively​

2. Manufacturing Workflows

The Manufacturing Module helps transform raw cannabis into products ready for distribution. With support for Work Orders and Bills of Materials (BOMs), it tracks each batch from raw material to finished product, maintaining strict quality control and regulatory compliance. This module enables seamless workflows for creating, packaging, and labeling products, ensuring that each stage in production is traceable and adheres to state regulations​

3. Retail POS Integration

Flourish’s Retail POS is essential for dispensaries and retail outlets, providing real-time inventory management and seamless integration. This system manages customer orders, from intake to checkout, and supports various payment types and delivery or pickup options. By maintaining an up-to-date view of inventory across locations and integrating with backend fulfillment processes, the Retail POS enables accurate, compliant, and customer-centric transactions​

4. Robust Analytics and Reporting

Flourish offers comprehensive analytics and reporting tools across all modules, allowing users to generate reports tailored to their operational requirements. These tools simplify tasks, from plant tracking and lab testing to inventory reconciliations and sales reports, ensuring that businesses remain in alignment with local and federal regulations without extra effort.

Empowering Informed Choices in the Evolving Cannabis Industry

Navigating the landscape of cannabis compounds can be complex, but understanding the differences between Delta-8 THC, Delta-9 THC, THCA, and CBD empowers consumers to make informed choices. Whether you’re curious about the milder effects of Delta-8 or exploring the therapeutic potential of THCA, staying informed is key to finding the right products for your needs.

It’s always advisable to consult with a healthcare professional before beginning any new cannabis regimen, especially for medicinal use. Professional guidance ensures a safe and effective approach to incorporating cannabis into your wellness routine.

For businesses, Flourish Software offers a comprehensive platform to support the cannabis and hemp industry’s unique needs. By streamlining cultivation, manufacturing, and retail, Flourish enables businesses to meet regulatory requirements, optimize workflows, and maintain high-quality standards. This kind of integrated technology is essential in an expanding industry, helping businesses remain competitive and adaptable as the cannabis and hemp markets continue to evolve.

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