For the past few years, the conversation surrounding CBD products like CDB isolate and CBD oil in the media and popular culture has evolved. First, the buzz surrounding CBD oil was focused on the world of benefits it gives users, minus the controversial high that comes with other cannabinoids found in cannabis such as THC. The first bout of information circulated was more about educating the masses and dispelling any misconceptions that CBD was the equivalent of smoking weed to get high. Any apprehensions consumers had about the negative side effects of using cannabis were left behind with the introduction of the ability to separate the different components and compounds in the plant. But now that the information has spread like wildfire with the help of the countless news outlets, blogs and comments sections online and the prominence of CBD in the headlines due to new legislation passing like the 2018 Farm Bill, the conversation has moved from “Did you know?” to “How can I get in on this?”
The CBD oil industry is quickly attracting new entrepreneurs and consumers alike, making it an industry that is rapidly gaining momentum, projected to become a billion dollar industry as soon as the year 2020. So in short, the answer is yes, the CBD oil industry is an exciting new business idea for entrepreneurs who are interested in getting in fairly early into a growing new market. However, it is important to understand the legality of CBD oil before you start building a business model to ensure you’re not building on the wrong information. The 2018 Farm Bill made it to where hemp is no longer a Schedule I drug, otherwise known as something that has no proven medical purpose and potential for abuse. But the legalization of its use is still up to the states – so it’s important to know if it is legal in your state and in what ways. Meanwhile, on a national level, marijuana is still not legal. That means if your CBD products are derived from it, it won’t be legal and will be subject to consequences if you build your business selling CBD products derived from it.
Legislation and regulation are desperately trying to catch up to the already moving train of CBD, hemp and cannabis based products. First, the 2018 Farm Bill addressed hemp, but there are other politicians and groups in the legislature that have been working on getting more broad bills and laws passed to expand on the current progress. It’s expected that by 2020, overall legalization of cannabis will come to pass; at the very least, much more serious focus and progress will be made towards it. Both democrats and republicans are talking about it as the 2020 election approaches and when it finally does, the floodgates to the CBD oils and cannabis industry will have been officially opened. Entrepreneurs that got in early and established their business models earlier will be positioned for unprecedented success. They will also have a serious advantage over any competition that got in as a last second straggler.
Whether you choose to look at the altruistic purposes for products being sold or not, this product is meant for healing. If you count yourself as part of the industry, you are part of a movement towards healing. There has been a serious movement over the past decade or two towards more naturally derived products and a sharp tone of awareness and disapproval of many traditional yet highly addictive and harmful pharmaceuticals. Consumers have become much more health conscious and they care, now more than ever, about where their products are sourced from, particularly products that they consume or are made exposed to. The research has been made known and the list of health benefits for CBD oils is a long one, counting preventative and even treatment worthy properties for serious illnesses and ailments like cancer, multiple sclerosis, alzheimer’s disease as well as other very common symptoms and diagnoses, such as chronic migraines, anxiety, depression, insomnia and much, much more. You might be motivated to succeed in this industry knowing your product will be helping thousands, maybe millions of consumers manage their pain in a naturally derived way. You might be having an even greater impact than you know if your CBD oil products are helping your customers move away from harmful, addictive or unreasonably expensive medications and successfully treating or managing their health issues with a healthier, more affordable alternative.
And if you’re not one for altruism necessarily, choosing to look more at the practicality of business, there is a huge market for the product due to the amount of ailments and illnesses in the country alone, lt alone the world.
While this industry has already grown at a breakneck speed and gained unstoppable traction in several arenas, it is still in its nascent stages. There is still work to be done to make the CBD oil industry a mainstream thing since there are alot of people who don’t know about its benefits and who look at the fact that CBD is derived from the cannabis plant and assume it gets you high. That means the more you educate consumers – or the more consumers begin to discover more information about it, the more the market keeps growing. It is already a $600 million dollar industry as of 2018 and is being projected to reach at least $22 billion by the year 2022.
Major companies are not ignoring the astronomical potential in CBD oils; companies like Sephora, Kiehl’s and Josie Maran have already begun infusing it into their products and clearing space on their shelves for its sale.
There is still research being conducted – and with more research comes more benefits left to be discovered. And again, this is just another growth opportunity for the vertical, meaning the market will grow even more.
Now is the time to position yourself and establish a strong working business model to get the edge over any newbies once the inevitable, full blown legality for all Cannabis products comes to pass. There are countless ways of being part of the industry. There’s room for everyone to participate – whether you want to go all in and become involved on the growing level or the distribution level or the packaging level, or if you’d rather be more hands off and be involved as an investor or if a seller, thanks to the internet and the tried and true drop shipping business model, you don’t even need to carry inventory. If you’re thinking about launching a CBD company or creating a CBD product, focus on what kind of product you’re looking to make or sell and that will lead you to who you should be marketing to and which regulations affect your business in your state. The most important factors people look for in this burgeoning industry are trustworthiness and transparency.
The hemp CBD is derived from is highly sensitive and absorbent to the elements around it, which means the customer will want and need to know if any harmful chemicals or pollutants came in contact with the crop of origin. So the more transparent you are with the customer facing elements of your business the better.
At the end of the day, your aim as an business owner should be to create/sell an effective and high quality product that your market and consumer base will love, trust and buy – and even better yet, recommend to others.