If you like to keep track of trends in the business world, there is probably one product that you have found it hard to ignore: CBD.
From cosmetic brands to major pharmaceutical companies, CBD (including hemp products) have been a cross-industry sensation, and there is scientific backing as to why.
Every person has an endocannabinoid system, a network in our body that reacts with cannabis products and can impact virtually every part of our health, from skin inflammation to mental health. For this reason, the uses of CBD are vast, and consumers are starting to take notice.
If CBD sounds like a business venture you would be interested in pursuing in 2019, you should know that you have multiple industries to consider pursuing, each with their own pros and cons.
The Legality of CBD
Unlike cannabis products with THC, the psychoactive chemical that makes you feel “high” after using marijuana, CBD and hemp are legal in all fifty states.
Although some THC products also boast having CBD, of course, getting into the THC and cannabis business is an entirely different can of worms. Although over thirty states have legalized medicinal marijuana and ten have legalized it recreationally, there will certainly be legal challenges involved with opening a business that sells both pure CBD and THC products.
As a business that solely deals with the production and sale of CBD, our best advice to you is: if you want you to get into the THC business as well, hire a lawyer, and do it before anything else.
Things to Consider before Pursuing Business in CBD
If you are eager to get started and create your own CBD empire, you should first step back and consider some important things about the industry in 2019.
First, you understand that, in some respects, CBD is already a saturated market. Perhaps five to ten years ago, you would have found yourself without many competitors. But today, any customer interested in buying CBD products has an abundant selection available to them.
This does not mean that your brand cannot be successful. Every day, people create successful companies from widely available products, from candles to skin care to Greek yogurt. It simply means that you need to understand going into any business deals or investments that your product alone is not enough to keep your business afloat.
CBD is not a product that is so low in supply that people will flock to you simply because you are one of the only people selling it. As with any other business, you will need to create a well-liked brand, have a smart business plan, and convince your target market that you can offer a better product than your competitors. In other words, breaking into the CBD business will not be any easier than breaking into any other industry—and you should never forget that.
Second, although CBD is absolutely legal across the country, you need to be able to hold yourself to high standards. While a lot of businesses will import cheap CBD from countries like China, high-quality brands (such as ours) will use 100% American-grown CBD, in accordance with agriculture laws and safety standards.
To prove to your customers (and the government) that you offer high-quality products with no THC (which remains illegal for recreational use in most places in the states), you will also need to pay for lab testing. CBD is something that you consume, so it must always be produced and sold with health and safety as a top priority. If you would not want your food produced or packaged in a certain way, you should not produce or package your CBD in that way, either.
Diversify Your Products (and Industries)
One of the great things about CBD is that is can be taken in so many different ways, making it accessible for everyone.
Want to focus on CBD and skin care? CBD can be effectively applied as a topical cream. Hate swallowing pills? Luckily, CBD can be taken in the form of yummy chewable gummies or other edibles, or CBD oil can even be mixed into cocktails.
Instead of focusing on one specific product (like a tincture) you might benefit from offering your customer a wide range of options to how they want to ingest CBD.
Additionally, you should think long and hard about the market that you wish to target. The customer buying CBD to treat their acne is different from the one looking for stress management. Here are a few of the different industries where CBD is making a splash:
Cosmetics and Skin Care
CBD has been shown in studies to combat inflammation, aging, and oil build-up, which, in turn, leads to clearer, youthful-looking skin. It is already being used as an ingredient in everything from night creams to hair care products, and with even major brands embracing it, CBD is hopefully a trend that will last.
Medical Treatments
Breaking into the medical industry can be both challenging and rewarding. Currently, CBD is growing in popularity as an epilepsy medication and, as research expands, it may become more heavily prescribed for pain relief, mental illnesses, and other conditions.
Weight Management
There is some evidence to show that CBD acts as a natural suppressant for cravings, which can help people trying to lose weight stay away from sugary, heavily processed foods. On top of this, by acting as a natural energy booster and stress management tool, it can promote better habits and more frequent exercise, which, in turn, can help even further with weight loss.
Sleep, Stress, and Wellness
Research has consistently shown that CBD has a number of psychological health benefits, including stress management, better sleep schedules, and boosted energy and alertness. Some medical professionals even believe it can be a tool to combat the opiate crisis.
Regardless of where the CBD business takes you, one thing is for sure—the popularity and lucrative side of the industry are not going anywhere anytime soon.