Still fairly new to the mainstream, cannabidiol, which is commonly referred too as CBD, is becoming a household name. The advertised therapeutic and health benefits of CBD, one of many compounds found in cannabis and Hemp plants, has created a buzz. CBD oil has entered the marketplace in the form of tinctures, infused edibles, topicals and more. The growth of CBD oil products has been so immense that many expect it to continue growing at crazy rates. Because of this, I am going to tell you how you can start your how to start your own CBD business and give you an overview of what CBD is all about.
What is CBD?
CBD is one of more than 100 cannabinoids, which are compounds found throughout the cannabis and hemp plants. The most famous cannabinoid is undoubtedly tetrahydrocannabinol (THC), which is responsible for the intoxication associated with the consumption of cannabis. CBD, however, does not produce the infamous intoxicating effect. Instead, it offers possible therapeutic applications with early studies citing health benefits, but research is still being conducted as to the extent that these compounds can positively affect people.
CBD products are usually created in several steps. First, the raw material needs to be cultivated and harvested. For example, if you plan on using industrial hemp to create your CBD products, you will either need to cultivate or purchase a large amount of the plant. At this point, CBD oil is extracted from the plant using a variety of methods. Again, you can do this yourself or outsource the process to an extraction company. Once you have finished extracting CBD oil, it can be sold as a concentrate or used to infuse a variety of products. Some of the most common CBD products on the market today include sublingual tinctures, infused edibles and topicals, like creams and gels.
The CBD industry is Projected to Grow Immensely
Industry analyst BDS Analytics thinks the U.S. CBD market will reach an insane $20 billion in sales by 2024. This would be a major boost from $1.9 billion in 2018 (a 49% growth rate). Needless to say, society is growing more open-minded and accepting of CBD. Several individuals are turning to it for pain relief, stress management, improved sleep, and more. CBD is also being sold in a huge range of locations like gas stations, restaurants, and local CVS stores.
Some trends the CBD market might experience in 2020 are increased potency of product, more physical CBD stores, an increase in pharmaceutical CBD products, and more access to products online through CBD focused online stores. In fact, CBD online sales is accounting for 60% of the current market’s sales channels.
The CBD industry is introducing new products all the time. If you are looking to get your feet wet in a CBD business, you will have a wide range of product types to consider selling. This is one of the massive pluses if you have a great idea to innovate the CBD market with. Because it is so young the customers are more open minded to weird and wonderful product ideas. People have already been feeding CBD to their pets in small doses, with positive effects.
How to Start a CBD Business
There is a seemingly endless stream of opportunities for new businesses to sell CBD. Starting a CBD business includes all the challenging work and effort of launching any other company in addition to the instability of a shifting regulatory landscape, with all the pros and cons that come along with it. However, in a fledgling industry projected to undergo explosive growth, the heavy lifting today might be well worth it tomorrow.
To recap, the CBD business is shaping up to be a massive force in health & wellness markets. So, if you are looking for a profitable business model with the right amount of risk, this could be for you. Be sure to understand the products you are selling though, so you can establish yourself as an authority in your market.