Your journey towards launching a successful CBD business starts with gathering knowledge and information related to the industry. CBD market is still unregulated and as a matter of consequence, there are fraudsters like you will find in any other industry. In some states, CBD products are in the legal grey area. So you must learn the dos and don’ts related to this industry.
CBD Business Facts
- Cannabidiol shortly known as CBD is a compound naturally found in Cannabis sativa plants. It is one of the many derivatives you can find in the Cannabis plants. Some other derivatives of Cannabis plants are THC, CBG, CBN, CBC, etc.
- THC is the psychoactive compound and is the most popular compound in the medical marijuana community.
- While Extracting CBD from Cannabis plant it is common to have a trace amount of THC along with other Cannabinoids.
- CBD extracted from the Marijuana plant can have a higher level of THC content than that of Hemp derived CBD
- 2018 Farm Bill legalized the cultivation of hemp and hemp-derived products. As a result, CBD extracted from industrial hemp is now considered legal all across the USA
- If a CBD infused product contains no more than 0.3% THC it is considered legal in all states. But if the level of THC in a particular product surpasses that amount of THC, it will be considered legal only on those states where medical marijuana is legal and might require a prescription for legal purchase.
- CBD extraction process plays a vital role in determining the quality of the end consumer product. CBD can be found in various forms like CBD isolate, Full Spectrum CBD, Broad Spectrum CBD, etc. CBD isolate is the purest form of CBD that contains just Cannabidiol.
- Some manufacturers offer CBD in nano water-soluble form which ensures maximum bio-availability.
- In order to launch your CBD products from seed to shelf, you need to utilize 3rd party providers that will take care of extraction and manufacturing.
- Partnering with white label CBD manufacturers can help save you time and money.
- A private label CBD company can serve you finished goods with your own branded label and thus you can enter the market with minimum investment.
Identify the Demands in CBD Market
According to BDS Analytics and Arcview Market Research, the leading cannabis sales data researchers, the cumulative CBD product sales in the USA will probably surpass 20 billion USD by the year 2024.[2] And there is no wonder why. CBD as an ingredient has penetrated into a vast array of industries including but not limited to the following:
- Pharmaceuticals
- Food and Beverage
- Cosmetics
- Healthcare products
- Pet products
- Skincare products
Besides, marketing initiatives from industry insiders, promotion from social media influencers, and growing application areas have made CBD the latest consumer trend. People falling to buy products containing CBD because of the therapeutic benefits it has to offer. As a result, mainstream retailers like Walgreens Boots Alliance, CVS Health, and Rite Aid are now offering CBD-infused products to their customers. Apart from sales generated through cannabis dispensaries and mainstream retailers, CBD generated an exploding amount of online sales through CBD eCommerce websites. In fact, CBD e-commerce sales account for 60% of the overall sales channels.
Identify the Hot Selling CBD Products
The next logical step towards the successful launch of your CBD business is to identify the hot selling CBD products. In 2018 FDA approved Epidiolex, a CBD based pharmaceutical product for the treatment of seizures. The acceptance of CBD infused products for medical and wellness purposes is increasing rapidly. It is believed that CBD has antioxidant, anti-aging, and anti-inflammatory properties. Maybe that’s the reason for the rising demand of CBD infused cosmetics and personal care products.
You can commonly find CBD as:
- tinctures
- oils
- capsules
- concentrates
- soft gels
in dispensaries, pharmacies and online stores. Topical forms of CBD include:
- lotions
- salves
- balms
- lip balms
The popular edible forms of CBD are:
- gummies
- chocolates
- coffees
- candies