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:
- “Why does the market need this?”
- “Who is going to buy this?”
- “How does this differ from existing products?”
Number two: when it’s time to put your product on the market, ask yourself:
- “Is there a retailer who carry my product?”
- “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.