The fastest growing sector within the hemp and cannabis industry is the buying and selling of CBD products. Industry studies have made claims that the CBD industry will reach an estimated projected sale of $20 billion before 2024. This is dually because the legalization of hemp cannabinoids and hemp under the 2018 Farm Bill as well as the high demand from consumers for medicinal purposes.
To learn more about the 2018 Farm Bill and the legalization of CBD products, go here: https://www.brookings.edu/blog/fixgov/2018/12/14/the-farm-bill-hemp-and-cbd-explainer/. The best time to become a part of the industry is now, while it is rapidly growing.
Let’s have a closer look at the industry and how it is projected to grow in the coming years.
In 2018, cannabinoid products like oils, tinctures, edibles, and vape concentrates reached $1.9 billion in sales. According to BDS analytics, this number is predicted to increase even further reaching a whopping $20 billion in 2024.
Luckily, citizens are becoming more open-minded and many are open to trying different types of products to experience its therapeutic benefits. Currently, many consumers are buying products from online dispensaries (as a matter of fact 60% of all cannabinoid products are sold online). But it is predicted that 2021 will see many more pop up CBD wholesale shops selling different pharmaceutical CBD topical cream.
For anyone who wants to be part of the action and get their hands on some profits, the time is now. Here are a few things you should consider before opening up your doors.
Choosing the Product
Since new CBD products are continuously introduced, there will be a wide range of products to choose from. Products, like the ones listed on Cheef Botanicals and other online stores include tinctures, concentrates, drinks, topicals, pills, and capsules.
This does not mean you should only stick to CBD products for humans, animals have also joined in. Additionally, low quantity cannabinoid products are manufacturers to be given to cats and dogs. When given in small doses, pets can experience a calming effect.
To become part of the industry, you should decide whether you want to sell wholesale, raw products, products with THC content, CBD products for pets, or sell only products for medicinal purposes. It will be completely up to you what market you want to target and what specific products you feel more passionate about.
If you want to save in the long run, you can consider buying wholesale and bulk products from reputable wholesalers.
Even though the 2018 Farm Bill legalized hemp and hemp farming, it doesn’t mean that sellers aren’t still required to function under strict legal obligations. When the act was enforced, it essentially removed cannabinoids off of the federal Controlled Substances Act – which forms part of the DEA. As a result, the farming, cultivating, and selling of CBD products were placed under strict rule of the FDA.
Rules and regulations are still being devised by the FDA and if you want to be part of the industry, you have to ensure that you stay up-to-date with the latest. Especially when it comes to the CBD-based substance Epidolex (a medication to treat symptoms of epilepsy).
Even though rules and regulations are still a bit unsure, it has been stated that sellers aren’t allowed to market CBD as having health benefits. So, before you start designing posters, make sure that you follow the rules.
Marketing and eCommerce
Believe it or not, but it’s still quite tricky to sell cannabinoid products on major online stores. Even running ad campaigns on social media networks are rarely seen. This is because paid promotions and ads of these products might risk accounts being banned or suspended.
Engaging customers will only happen by growing organically or promoting your product through online influencers. Newbies can also consider customer loyalty programs and after-purchase upsells to generate a higher income and returning customer percentage.
Before you jump into the industry, know that there will be some restrictions on marketing and advertising. You will have to find new ways to gain competitive advantage over other CBD product sellers.
As long as you do in-depth research and stay up to date on all legal rules and regulations, you can start your CBD journey.