Demetrix and Evonik Sign Supply Agreement for Cannabinoids
Evonik has joined the race to commercialize cannabinoids by entering into a supply agreement with US-based biotech firm Demetrix, to utilize the latter’s cannabinoids ingredients in personal care products, starting with Cannabigerol (CBG) infused products, which are planned for this year.
Most of the research on the ingredient confirms that cannabinoids do not have any intoxicating effects unlike those caused by THC in cannabis, and at the same time it has been shown to offer anti-anxiety and anti-psychotic effects. The personal care industry is well interested to explore these benefits in a new era of therapeutic products and meeting these novel demands, particularly from the Millennial and GenZ consumers.
The challenge within the industry has been the legalization of the ingredient, as there is no unified regulation across the industry when it comes to quality, testing standards, labelling, marketing, and overall terminology.
However, accelerated product launches and consumer acceptance is expected to propel the development of a unified regulatory base for cannabinoids in the coming years.