The cannabis industry is one of the fastest-growing industries in the US. Thousands of new products reach the market every year, so the competition is very tough. Ever since CBD products became legal and recreational use of marijuana was allowed in multiple states across the US, many young entrepreneurs decided to try making it big in this industry.
Since the market is growing so quickly, we expect to see hundreds of new organic CBD & THC products and companies soon, many of which won’t follow the highest industry standards. The current state of the cannabis industry is full of contradictions, so stay with us, and we’ll tell you what’s going on.
Timing Is Everything
While it doesn’t take a lot of effort to start your own cannabis business these days, finding the perfect timing is easier said than done. After the farm bill was passed in 2018, the market saw a massive influx of local businesses, and the number of entrepreneurs keeps growing by the day. All of this has changed the industry a lot in the past three years.
The government saw a huge rise in demand for CBD and THC products, so they prepared new laws and regulations to define the industry further. That includes federal backing on insurance and loans for CBD and THC companies. Everyone expects the FDA to update its rules on cannabis products soon, which will probably create all kinds of turmoil in the markets. Stricter laws will be great for the users, but many businesses could lose their licenses completely.
That’s why new businesses have to pick the perfect timing if they want to make it on the market. It looks like it’s better to wait until these new changes take place and start your business once everything is clearly defined.
Advertising Is Complicated
Most CBD businesses sell their products online, which means that you’ll have to invest some cash into advertisements. While that’s perfectly normal across many industries, things are a little more complicated when you sell CBD and THC products.
Most social media, including Instagram, Facebook, and Twitter, don’t allow hemp and cannabis product ads. If you pay for ads, most popular websites will shut your campaigns down immediately. You might even get banned from using these platforms completely. After a massive battle with Facebook, the platform finally agreed to allow some CBD products, but the ads can’t feature the product whatsoever.
The main reason for limiting online ads is the different rules across multiple states. As a cannabis business owner, you’ll have to think of new ways of advertising. The best option is to contact websites and CBD publications online and push your products through there. You can also visit hemp events to inform the public about your newest products.
What Attracts The Most Customers?
Just take a look at the current CBD and THC markets, and you’ll see that most available products are nearly identical. For example, CBD tinctures are entirely the same, no matter which brand is behind them. The only variations are the strains they are made from.
With such a unified offer by every company, making your product stand out won’t be an easy task. You’ll have to think about the reasons why someone would choose your product over so many others out there. Innovation is the new standard, and the more original your product is, the better chances you’ll have of selling it. However, you’ll need a Certificate of Analysis to prove that your products offer the highest quality.
That means that you’ll have to meet industry standards such as using organic hemp and ensure that your products meet the customer standards. You can either create new products or come up with a compelling story behind your offer to get a share of the market.
Passion for Cannabis is Critical
No matter how good your products might be, without showing passion in their creation, you’ll just be one of many cannabis companies out there. Your audience wants something original; the market for gummies, edibles, and oils is already flooded.
You need a good idea that shows your passion for CBD and THC. But you can’t just sell something on a story as your customers will be able to tell when something is genuine. The cannabis market largely focuses on health and wellbeing, so you have to be careful with your claims.
The Bottom Line
The CBD and THC market is still very turbulent even though hemp became legal all over the US. However, until all states legalize the recreational use of marijuana, you will have to face all kinds of challenges as a business owner. So, before you start your business, consider all of the details, and you’ll have better results.