Food industry backs away from CBD

Big companies are taking a step back from developing food and drink products made with CBD, after the Food and Drug Administration raised safety concerns, the Wall Street Journal reports.

By the numbers: CBD-infused foods and beverages surpassed $1 billion in revenue in 2019 even without FDA approval, according to the Journal, and revenue is projected to reach $10 billion by 2024.

But smaller players will get a leg up in that market, at least for a while.

• Companies like Pepsi, Starbucks and Kellogg had been considering hemp-derived products, but are now at a standstill until the FDA signs off, the WSJ writes, citing food scientists and consultants familiar with the matter.

Flashback: In November, the Food and Drug Administration warned consumers against CBD-infused foods and beverages, saying research isn't quite there yet to conclude it's safe to ingest or that it's a good anxiety or sleep aid.

• CBD does not get you high, unlike marijuana's psychoactive component THC. FDA cites potential risks associated with its consumption, though, like liver damage.

Go deeper: Mainstream retail's move into CBD could create $24 billion industry