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October 17, 2020

Here's What CBD Stands for in the Industry

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CBDfx Team

Here's What CBD Stands for in the Industry

Since CBD has been in the mainstream you may have caught yourself wondering what the acronym CBD stands for.

If you’re having trouble understanding cannabis products, don’t worry, you’re not alone. The industry’s undergone rapid changes in the last few years, and it can be difficult to keep up.

CBD’s place in the cannabis industry has changed over time.

Here, we’ll explore what CBD stands for, its history, how production methods have changed, and where CBD fits in the industry today. 

What Does CBD Stand For?

First things first, let’s get the acronym out of the way.

CBD refers to cannabidiol, a non-psychoactive compound known for its therapeutic benefits and containing less than 0.3% THC. 

Cannabidiol is one of the many types of cannabinoid compounds produced by the cannabis plant (there are more than 100). Each compound has its own special effects for the consumer, but cannabidiol is the most well-known for its therapeutic benefits.

The CBD compound is present in almost all cannabis plants. This means that you can derive CBD from both marijuana and hemp—two well-known strains of plants in the cannabis family.

However, although marijuana and hemp are in the cannabis family, there are some major differences between marijuana-derived CBD and hemp-derived CBD. The biggest difference is that hemp plants contain no more than 0.3% THC, while many cannabis plants may contain more than 30% THC. With nearly undetectable THC levels, CBD derived from hemp doesn’t come with the same intoxicating effects as marijuana.

The Legal Status of CBD in the Industry

Hemp is used to make clothes, products, and food.

However, during the 20th century, hemp’s legal status was tangled up with its association with marijuana. Under the Controlled Substance Act of 1970, hemp was classified as an illegal substance. Under this classification, CBD derived from hemp was also considered illegal at the federal level.

However, a few years ago, a significant breakthrough came with the passage of the 2018 Farm Bill. This law finally made the industrial production of hemp and all of its products fully legal.

Now, hemp production and CBD-derived hemp are legal in all 50 states, and consumers can find CBD products in stores and online.

Options for CBD are Changing

When CBD hit the broader market, the number of options for consumers exploded. Producers and manufacturers raced to provide a new range of products. Consumers have more choices than ever when it comes to CBD sourcing, CBD oils, and what kinds of products are available.

CBD products start with hemp.

Every company has its own standards for how they source the hemp they use in their products. Organically-grown hemp is the industry gold standard, compared to conventional hemp grown with non-organic chemical inputs.

Organic hemp plants are grown without being sprayed with pesticides or other toxins, making it the healthiest way for consumers to take CBD.

For the most reputable companies, this sourcing is verified through third-party lab testing results.

Extracting the CBD Oil

After the hemp is sourced, there are multiple options for extracting the CBD oil. There are three main types of CBD oils: full-spectrum oil, broad-spectrum oil, and CBD isolate. 

When hemp plants are crushed during the extraction process, all of the cannabinoids, terpenes, and essential oils are still present in the oil. Full-spectrum extraction leaves all of these other compounds intact.

Broad-spectrum oil adds an additional step, removing the trace amounts of THC. CBD isolate is up to 99% pure CBD, without any other cannabinoids or terpenes.

With so many different products in the industry, consumers are able to choose which CBD oil fits their needs. 

How CBD is Consumed

Finally, there are many kinds of CBD products that use different “delivery methods”. Some of the most common forms of CBD are either dropped under the tongue, ingested, inhaled, or used as a topical on the skin.

All of these methods have different bioavailability, affecting the rate and speed at which your body absorbs the CBD compound. 

This range of products with distinct bioavailability is especially important for CBD products because every individual has unique body factors that determine the efficacy of CBD.

Your genetics, body weight, metabolism, and body chemistry all can affect how CBD interacts with your system. Because consumers have many different choices for products in the industry, it is easier than ever to find what works best for you.

Most Popular CBD Benefits

As CBD has become more prevalent in the industry, more consumers are talking about the benefits they find from adding CBD into their lives. CBD doesn’t elicit any psychoactive effects that are associated with the “high” of marijuana.

Instead, many consumers find that CBD provides therapeutic relief for different health and wellness concerns. 


For instance, CBD helps quiet the worries and distractions that come when we try to concentrate on a task. Our mind can naturally run away with thoughts, but by encouraging relaxation, CBD can help us better focus on the work in front of us.

As many people switched to working from home this year, they are finding that the mental resistance to getting work done while at home can result in a loss of productivity. Many are turning to CBD to help cope with distractions and focus more deeply

Winding Down

Another common use of CBD is to help wind down at the end of the day to get ready for sleep. Maybe this scenario sounds familiar: you are tired all day, but when it’s time to shut off the light and go to bed, you find that you can’t turn your mind off.

CBD is well-known for its calming properties, and the effects of CBD can help balance out some of the things that may be keeping you awake, like anxiety or stress. Many people who need help achieving this state of mind for restful sleep find CBD particularly helpful.

Growing Popularity in the Cannabis Industry

After the 2018 Farm Bill was passed, CBD became an enormous part of the cannabis industry. This trend has continued with the market showing no signs of slowing down.

In fact, a study from 2019 predicted that the CBD market could reach $20 billion by 2024

Because of the rapid growth of CBD products, CBD is more important than ever for the industry. CBD can now be found everywhere from health stores to online wellness stores. After decades of being shut out of the market, CBD is now fully legal and can even be delivered straight to your door. 

While more options are good for consumers, there is more information than to sift through. Now that you know the basics, keep CBDfx in mind as you look for the best product for you.

Time for the fun part: experimenting to find out what works for your health and wellness goals. 

Interested in how to add CBD into your routine?
Check out our collection of CBD products to find a perfect fit!

Did you know?

The strength of the CBD needed (500mg, 1000mg, and 1500mg) will depend on the dog.
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