One of the fastest-growing segments in the cannabis and hemp industries is the CBD sector. Here are some ways you can start your own CBD business.
Cannabidiol, a compound found in cannabis and hemp plants, is increasingly being used as a dietary supplement.
By 2024, the CBD industry will have a total of $20 billion in annual sales.
Cannabidiol (or CBD), is still relatively new in the mainstream. CBD, one compound found in hemp and cannabis, is gaining popularity due to its alleged therapeutic and health benefits. CBD oil is now available in tinctures, infused edibles and topicals. BDS Analytics, an industry analyst, predicts that the U.S. CBD market could reach $20 billion by 2024.
What is CBD?
CBD is just one of the more than 100 cannabinoids that are found in cannabis and hemp plants. Tetrahydrocannabinol, which is responsible for intoxication that is associated with cannabis consumption, is the most well-known cannabinoid. CBD does not have an intoxicating effect, but it has potential therapeutic and medical benefits. However, research into CBD’s potential medical uses is ongoing.
CBD products can be made in multiple steps. The first step is to grow and harvest the raw material. If you want to use industrial hemp for your CBD products, then you’ll need to either cultivate the plant or buy large quantities. The CBD oil can then be extracted using many methods. You can either do it yourself or hire an extraction company to do the job. After extracting the CBD oil, you can sell it as a concentrate or infuse many products with it. Sublingual tinctures, edibles, and creams are some of the most popular CBD products.
Hemp CBD vs. Cannabis CBD
Both hemp and cannabis plants contain CBD. CBD oil can be extracted from any plant to make CBD oil products. There is one key difference between CBD oil derived from hemp and CBD products made from cannabis: THC.
Industrial hemp has less than 0.3% THC. As such, it’s legal to grow, harvest, and produce finished products under federal law. Cannabis, however, has more than 0.3% THC, which is often much higher, and is still federally illegal.
CBD isolate vs. full-spectrum CBD
You’re likely to have come across the terms “full spectrum” and “isolate” in your research on CBD. The CBD oil extracted from the plant may also contain cannabinoids or compounds that were present in the source plant. This is full-spectrum CBD. Full-spectrum CBD does not contain only cannabinoids from the source material. It also contains compounds known as Terpenes that are responsible for the specific effects, flavor, and aroma of the plant.
CBD isolate is a concentrated CBD that contains CBD only. It does not contain any other cannabinoids and terpenes. Although CBD isolate may sound pure, evidence suggests that full-spectrum CBD has an entourage effect. This means that the compounds found in full-spectrum CBD work together to produce more powerful effects. Researchers studying CBD and other cannabinoids are still investigating the entourage effect.
The CBD industry is expected to explode.
BDS Analytics, an industry analyst, predicts that the U.S. CBD market could reach $20 billion in revenue by 2024. This is a significant increase from the $1.9 billion in 2018, which was 49% annually.
It is obvious that CBD is becoming more accepted and open-minded in society. CBD is being used by many people for their pain relief, stress management and better sleep. Many gas stations, restaurants and CVS shops now carry it.
The market may see an increase in potency, more CBD shops and pharmaceutical CBD products. There will also be more CBD products available online via e-commerce and CBD websites. CBD online sales account for 60% of all sales channels.
New products are being introduced to the CBD industry every day. There are many product types that you can sell if you want to start a CBD company. These are the top-selling CBD products on the market:
Sublingual tinctures: This is CBD oil, usually in a small container with a dropper. You can inhale sublingual products by placing them under the tongue and allowing it to absorb.
CBD edibles: CBD edibles, also known as baked goods, candies, and food, are rapidly expanding the market. Despite being subject to significant regulatory scrutiny by the U.S. Food and Drug Administration, CBD edibles are still a common product.
Vape concentrates: Another common product is vape concentrates. These concentrates include CBD oils and waxes. You can use these with an electronic device in order to vaporize or inhale the CBD products.
How to start a CBD-based business
New businesses have many opportunities to sell CBD. A CBD business requires all the work and effort required to launch a company, as well as the uncertainty that comes with a changing regulatory landscape. The heavy lifting of today may be worth it in an industry that is still growing rapidly.
Core Roots CBD owner Cory Slovik was inspired to start his business after experiencing the healing properties of cannabinoid.
“I was a professional snowboarder. My muscles were always in pain. Slovik said that CBD helped him tremendously. “Then, many years later, cannabis… began to come to the forefront. There was data and research backing up everything that I felt on the mountain.
Core Roots CBD was founded by Slovik, who saw a business opportunity as well as a way to help others with their pain. He explained that starting a CBD business is just like any other business with a few extra steps.
Know your legal obligations
The 2018 Farm Bill federally legalized hemp extract and industrial hemp, but that doesn’t mean there aren’t important regulatory considerations surrounding this industry.
The 2018 Farm Bill effectively removed CBD from federal Controlled Substances Acts and the oversight of Drug Enforcement Agency. Instead, the FDA was given the responsibility for managing the CBD industry and CBD oil.