A very common question we get is ” Is the CBD Industry Profitable ? “. The CBD industry is expected to explode. BDS Analytics, an industry analyst, predicts that the U.S. CBD market could reach $20 billion in revenue by 2024. This is a significant increase from the $1.9 billion in 2018, which was 49% annually.
It is obvious that CBD is becoming more accepted and open-minded in society. CBD is being used by many people for their pain relief, stress management and better sleep. Many gas stations, restaurants and CVS shops now carry it.
The market may see an increase in potency, more CBD shops, and pharmaceutical CBD products. There will also be more CBD products available online via e-commerce and CBD websites. CBD online sales account for 60% of all sales channels. So if you are wondering is the CBD Industry Profitable? Yes! If exactitude in the correct way.
So what makes the CBD Industry profitable? New products are being introduced to the CBD industry every day. There are many product types that you can sell if you want to start a CBD company. These are the top-selling CBD products on the market:
- Sublingual Tinctures– A sublingual oil is CBD oil. It comes in a small container with a dropper. Sublingual products can be ingested by placing the product under your tongue and allowing it to absorb.
- CBD Edibles – CBD edibles are an incredibly growing segment of the industry. They include baked goods, candies, and food. Despite being subject to significant regulatory scrutiny by the U.S. Food and Drug Administration, CBD edibles are still a common product.
- Vape Concentrates – Another common product is vape concentrates. These concentrates include CBD oils and waxes. You can use these with an electronic device in order to vaporize or inhale the CBD products.
- CBD Topicals – CBD topicals are creams, sprays and gels that treat aches and pains. These products can be applied directly to the skin to target specific areas of the body.
- CBD Pills And Capsules– Many people who suffer from seizures or digestive problems use CBD pills or capsules to treat their condition.
CBD doesn’t only benefit humans, it can also be used to calm animals in small amounts. Many businesses sell CBD products for pets like dogs and cats.
How To Start A CBD-Based Business
New businesses have many opportunities to sell CBD. A CBD business requires all the work and effort required to launch a company, as well as the uncertainty that comes with a changing regulatory landscape. The heavy lifting of today may be worth it in an industry that is still growing rapidly.
Are You Ready To Start Your CBD Business Online?
Know Your Legal Obligations
The 2018 Farm Bill federally legalized hemp extract and industrial hemp, but that doesn’t mean there aren’t important regulatory considerations surrounding this industry. The 2018 Farm Bill effectively removed CBD from federal Controlled Substances Acts and the oversight of the Drug Enforcement Agency. Instead, the Federal Drug Administration (FDA) was given the responsibility for managing the CBD industry and CBD oil.
Because this legislation is so new, the FDA is still developing regulations. This leaves the CBD industry in a gray area. The federal agency has already indicated that CBD marketing as having health benefits is not acceptable. In some cases, it has even taken steps to crack down on CBD-infused beverages and foods.
The FDA approved the CBD-based drug Epidolex in 2017. This epilepsy medication is further complicating the regulatory environment. According to the FDA, it is illegal to use CBD in food products unless it is approved by the FDA, however, states have the power to overrule this claim because of the 2018 Farm Bill. CBD businesses must be able to comply with federal regulations but the FDA must provide clearer guidance going forward.
In a highly scrutinized industry, it is important to understand your legal obligations and play safe. CBD businesses around the world are still waiting for clearer regulatory guidance. However, it is important to not base your marketing strategy on CBD’s supposed benefits. You should also keep up to date with any developments as both the FDA and your State government continue to craft new regulations.
Sell And Market Your Products
It can be difficult to market and sell CBD products. Although the 2018 Farm Bill has allowed some industry players to be more open (CVS and Walgreens now stock CBD products), it’s still challenging to sell CBD products online on major platforms such as Amazon and eBay. Paid ads for CBD products are at risk of being suspended or banned. Your growth must be driven by organic content that conforms to the guidelines of each platform.
You will need to be creative in order to successfully market and sell CBD products. It is essential to have your own ecommerce store. It is safer to market your product using an organic search strategy or customer loyalty programs than paying for advertising. Every market is different so make sure to research your state and local laws.
How To Get A Competitive Edge
To gain a competitive edge in the CBD industry, you must develop a high quality product that can withstand scrutiny from regulators as well as educated consumers. Third-party lab testing results are essential to distinguish yourself from other CBD companies.
Obtaining certifications such as USDA organic, Good Manufacturing Practices, and FDA facility registrations is important to instill confidence among consumers about the product’s quality.
We recommend double- and triple-checking everything. Be aware that there will be adjustments. We advise that you do your research and think outside of the box to see the future possibilities.
CBD Can Be A Great Business Opportunity If Approached Correctly
The CBD industry offers incredible growth potential. The nation’s cannabis industry is among the most rapidly growing, with CBD being one of its fastest-growing sectors. Hemp products are growing rapidly, especially after the passage of the 2018 Farm Bill. You’re not the only one who wants to start a CBD company.
Your business will be successful in the CBD market if you combine creativity and diligence. This is your chance to start from the ground and create a company that lasts. But, you must also differentiate yourself by offering a product that is superior. If you want to make sure you are profitable in the CBD industry then partner up with us and let the professionals help you! Call us today to learn more.