Understanding your legal obligations and playing it safe is key in a highly scrutinized industry. While CBD businesses everywhere await clearer regulatory guidance, it is important not to craft your marketing strategy around the supposed benefits of CBD. It’s also important to stay apprised of new developments as the FDA moves forward on crafting new regulations.
Industry analyst BDS Analytics predicts the U.S. CBD market will reach $20 billion in sales by 2024. This would be a major surge from $1.9 billion in 2018 (a 49% annual growth rate).
“I would recommend double-, triple-checking everything. Know there will be changes. Research as much as you can, and recognize what the future opportunities are by thinking outside the box,” he said.
Understand your legal obligations
“I used to be a pro snowboarder … and I was always sore, my muscles were constantly in agonizing pain. I tried CBD, and it helped me tremendously,” said Slovik. “Then, years later, cannabis … started coming to the forefront, and there was research and data backing up everything I felt on the mountain.”
Needless to say, society is growing more open-minded and accepting of CBD. Many individuals are turning to it for pain relief, stress management, better sleep, and more; and many gas stations, restaurants, and local CVS stores now sell it.
The growth opportunity in the CBD industry is unparalleled. The cannabis industry is one of the fastest growing in the nation, and CBD is one of the quickest growing sectors of that industry. Especially following the passage of the 2018 Farm Bill, hemp CBD products are proliferating at a fast rate. If you want to start a CBD business, you’re not alone.
“In today’s day and age, if someone is looking to sell a product, the normal avenues are Amazon, eBay, Alibaba or paid ads on social media,” Slovik said. “In this industry, it’s way, way, way different. You can’t do any of those things.”
Brightfield Group analysts recently predicted that year-over-year CBD sales in the United States will soar 706% this year to approximately $5 billion. Thanks to the rise of CBD wholesale companies marketing CBD products online, sales are forecasted to top $23.7 billion by 2023.
On that note, we have highlighted some CBD suppliers online and some of the advantages to each.
Before You Start: The CBD Wholesale Checklist
If you cannot trust that the supplier manufactures high-quality, uncontaminated hemp-derived CBD, don’t expect to have an easy time selling it. Quality suppliers will source their hemp inputs from farmers that cultivate hemp in accordance with the highest cultivation standards.
Specialty stores cater to a particular retail market. A few prime examples of specialty brick-and-mortar businesses that would welcome CBD products include vape shops, smoke shops, health/wellness stores, and nutrition stores.
Your company and its stakeholders may also be slapped with criminal sanctions if you fail to monitor distribution, so keep this in mind if you want to penetrate the market on a large scale.