The natural potential of CBD (cannabidiol) is no longer a secret. More and more people are learning how CBD could improve their wellbeing and quality of life, and an ever-increasing number of businesses are discovering how they could utilise this natural resource. This boom in the CBD market has been so colossal that leading cannabis researchers BDS Analytics predicted that the US market alone could reach $20 billion in sales by 2024. This study took place in 2019, prior to the Covid-19 which Forbes noted provoked a soar in demand for CBD products. In short, CBD is here to stay – so are you getting on board?
Here’s your definitive guide to starting a successful CBD business, whether it’s wholesale, white label, or private label.
Knowing your CBD
Cannabidiol is a phytocannabinoid and is extracted from the hemp plant, which is part of the cannabis family – but CBD is not the only phytocannabinoid, which can lead to crucial differences in your CBD extract. In fact, there are more than 100 phytocannabinoids found in hemp and cannabis plants. The two most powerful of these are CBD and THC (tetrahydrocannabinol) which you may know as being responsible for the psychoactive effects of cannabis. CBD-based products do not have mind-altering effects, the levels of THC in hemp is significantly lower, and in most countries, the levels must be kept below 0.2% to be legal.
However, although CBD is the crucial phytocannabinoid, you may not necessarily want to extract it on its own. It is possible to obtain an extract which is only CBD, but studies have shown that when the phytocannabinoids (as well as terpenes and flavonoids) are kept together in the extract as they present naturally in the plant – they synergise and the overall effect is more impactful. Full-spectrum extracts contain all the natural elements which are found in the hemp plant, meanwhile broad-spectrum has 0% THC but contains everything else.
In general, full-spectrum CBD extract is the most favourable choice. But depending on your business and product line, your chosen CBD manufacturer will be able to advise you best.
What kind of CBD business is best for you?
If your business is set up, you’re raring to go, and the only thing you need to do is find the right CBD products to add to your shelves, then wholesale CBD could be the best option for you. By partnering with a wholesale service, you will know exactly what the finished product is and how it performs before you go to market. It also means that you can ride on the wave of the label’s establishment in the CBD market, which is incredibly beneficial as breaking into a booming industry comes with all kinds of challenges.
CBD White Label
White label products allow you to create your own, branded line of products, with the guarantee of high-quality CBD. Setting up your own CBD operation, from start to finish including cultivation and extraction, is a costly and time-consuming endeavor. Of course, you don’t want to cut corners, and you want your customers to have access to the very best CBD. Consequently, pairing with a trusted white label CBD manufacturer will allow you to use their extract and formulated products with your own label. Entering the market as a newly established brand allows you to set your own price points and choose your competitors.
CBD Private Label
White label and private label are often confused, but there is a crucial difference between them, and this could make all the difference to your CBD business. Private label allows you to collaborate with the CBD manufacturer during the formulation process, meaning your CBD product will be completely unique and a creation of your company, while benefiting from the knowledge, expertise, and resources of the experienced CBD manufacturer.
When choosing a CBD manufacturer and identifying the right kind of partnership it is important to take your ideal product range into consideration. Today, CBD comes in all shapes and sizes – starting with the original CBD oil, this has expanded into vapes, capsules, sprays, topicals, and skincare products amongst others. Depending on your brand identity and target demographic, your choice of product may differ. This will help you identify which manufacturer is best for your CBD business, and also help to decide whether white label or wholesale is the wisest choice, or if you would prefer to help formulate a new product.
While an excellent product is at the core of a successful CBD business, there are other factors that play a key role in the elevation of a company. The CBD industry is booming, but still largely unregulated, which has given way to a large number of loopholes and low quality companies. Partnering with the right manufacturer will help to avoid being caught up in the wrong end of the market, and there are certain ways to identify who can help you. Look for a company that is transparent, in both their production and the quality of their products which can be understood via independent third party lab testing (provided by all high grade companies). Another way of understanding your manufacturer is by reviewing the products that they already have on the market and how they perform.