CBD Business Growth Obstacles

CBD industry could reach $66 billion by 2025

Growing a new CBD business is highly rewarding, but this is a task that does not come without its challenges. Forbes predicted in a recent article that the CBD industry could reach $66 billion by 2025. To some this may seem surprising, yet the fact remains that everyone single one of us (and our dog … and our cat) has an endocannabinoid system, so we could all benefit from this naturally occurring compound. Nevertheless, the rules and regulations surrounding CBD have been shifting and changing beyond recognition in the past few years, including the passing of the farm bill in the US in late 2018. Consequently it can be difficult to establish your business in this landscape, particularly for an international audience where situations vary.

Wholesale CBD or private and white label CBD?

The first important decision to make is with your CBD supplier about whether you wish to pursue wholesale CBD, or private and white label CBD services. Each route has their advantages, so it’s about deciding what works best for you and your business. Private label and white label will allow you to tap into the CBD production and extraction processes, which will greatly help your understanding and education of the compound. Subsequently, you will have the freedom to adapt the product into your own branding vision. On the other hand, wholesaling an already established brand will allow you to benefit from their position in the market without you having to do the leg work. As mentioned earlier, this is a choice which will differ from business to business and you must decide what is right for you.

Promoting and selling your product is all about visibility, but how do you achieve visibility? There’s visibility in the physical sense; grocery shops, pharmacies, health and wellness shops, bodycare shops, petrol stations, and supplement shops. Not every high street brand is willing to take on CBD as part of their stock due to the continuously shifting regulations and the uncertainty which can surround it. However this is shifting, fast. CBD is becoming more and more visible within our towns and cities.

Online visibility is the other hurdle to tackle. Online retail is a space of boundless opportunities which bypasses many of the challenges you will face when trying to achieve physical visibility. For online visibility, mastering SEO is one of the first port of calls. Levels of investment into SEO will vary depending on whether you’re marketing your product to a city, a country, or internationally. Using location-based search submissions and geotargeting technology is notably easier than trying to market your product nationwide using SEO. The question of customer base will also affect your proposed shipping options, its fundamental that CBD is legal in the customer’s location and that the courier/postal service allows industrial hemp products in their system.

Ultimately, to make overcoming all the obstacles above as easy as possible, the secret is to find out how your product stands out; this can mean two things.

Number one: when conceptualising your product or product range ask yourself:

  1. “Why does the market need this?”
  2. “Who is going to buy this?”
  3. “How does this differ from existing products?”

Number two: when it’s time to put your product on the market, ask yourself:

  1. “Is there a retailer who carry my product?”
  2. “Who would make a good partner for my brand?”

To make your business stand out in the early stages it might be worth thinking about promoting your range outside of the CBD space. It’s much easier when everyone else in the room isn’t doing the same thing!

The CBD market is growing and reshaping itself pretty much every day across the globe. In new booming industries you have to take the good with the bad. It’s become clear that there are obstacles concerning regulations and establishing your brand. However, once you get the ball rolling you’ll be unstoppable.

If you have any queries about CBD wholesaling, white label, private label, or partnership please get in touch so we can start the conversation.

Private and White Label CBD Products for the EU

White labelling and private labelling CBD products allow your business to enter the CBD industry accompanied with all the inside industry knowledge and a high quality product in your name. If this is a venture you are interested in pursuing Reakiro’s white label and private label services are here and ready to guide you along the way.

The CBD industry is currently in a period of incomparable growth, predicted to reach a market value of $22 billion by 2024. Cannabidiol (CBD), a naturally occurring compound, is extracted from the hemp plant which is apart of the cannabis family.

As a European industry leader, Reakiro recognised the true potential for CBD and its place in the wellness industry over four years ago and ever since they have been dedicated to producing the highest quality CBD extract for their own products as well as their many partners.

Quality is a priority and core value of Reakiro, two years were spent finding the best European field to grow specially chosen strains of industrial hemp. Throughout the extraction process there are quality checks in place and every batch is tested by an independent third party laboratory to ensure the absence of any contaminants and confirm the potency of the CBD extract.

All Reakiro products are available for white label and private label services. The current range includes: CBD oil, CBD e-liquid, CBD capsules, and raw hemp extract. New and exciting products are currently in development, such as CBD beauty and skincare.

In addition to providing partners with premium quality CBD products and expertise knowledge, Reakiro goes above and beyond to aid the business venture in the best way they can. Reakiro can help conceptualise your design with identity and branding assistance, as well as packaging and production, advertising campaigns, and custom product formulations.

The experts at Reakiro are also committed to providing businesses with a range for scalable growth options, a stable supply, fast and efficient delivery, merchandising standards, and a go-to-market strategy.

If you or your business is interested in Reakiro’s CBD white and private label services do not hesitate to get in touch, get some samples, and start the conversation.

Who is the CBD customer?

“Health ailments without a ‘one-size-fits-all treatment’ are quite common and avoiding chemicals when it comes it health and self-care is important across all age groups. CBD sales and projections show consumers are turning to CBD for help, and demand is growing rapidly” 

– Colin Stewart, Senior Vice President, Business Intelligence at Acosta 

This September 2019, sales and marketing giant Acosta published thorough research into who exactly is today’s CBD consumer, and what this says about the rapidly growing industry landscape. The CBD industry is predicted to reach $20 billion by the year 2024; but who exactly are the key players in this booming economy.

Coming in at over a quarter, 28% of CBD customers stated that they take it either on an as-needed basis or a daily basis. The conditions and ailments most commonly cited for CBD use are anxiousness, muscle aches and pains, general wellness, headaches, and trouble sleeping.

The demographic of the users is slightly weighted towards women at 52%, versus the 48% constituted by men. Of all users, 56% are millennials – a generational group which tend to cite stress and millennial burnout due to their non-stop lifestyle as a reason for incorporate CBD into their daily life. There’s a misconception that the CBD user is largely uneducated, but this can be dispelled with the statistic of 49% of users being college educated with a bachelor’s degree or higher.

Whilst millennials express that stress and burnout are their primary motivations for involving CBD in their lives, gen Xs and baby boomers, who are also significant users, take the compound for different reasons. Around a third said that they took CBD due to joint discomfort, whilst around a quarter said they used it for muscle discomfort.

Amidst this analysis of who is taking CBD, companies might be curious to know who is not taking CBD, or perhaps why people are deterred from taking CBD. Lucky for them, Acosta’s research provided the answers. For consumers who have not tried CBD, they quoted three top reasons for their choice: the price point, insufficient published research, and distrust in the product claims. 

However, out of those who are open to trying CBD 13% found that the lack of regulation was a factor holding them back. Rules and regulations around CBD are constantly changing, for example the US farm bill (making hemp legal) was only passed in late 2018, and this can be confusing for consumers. The regulatory framework has knock-on effects such as how the products are labelled and also the amount of finance and interest which is invested into scientific research on the medical benefits of CBD products.

The report The CBD Effect: A Rapidly Emerging Consumer Trend, was compiled by Acosta using industry data, a shopper survey from July 2019, and data from internal experts BDS Analytics.