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Who would have imagined that one tiny, plant-procured chemical could become one of the most coveted ingredients in 2020-2021? CBD, or cannabidiol as it’s known in its initial form, has gained a reputation as one of the most adaptable ingredients from cannabis. A little dash of magic, some might describe it- especially when supplied in its tincture form –CBD made its entrance a few years back.
In 2018, the U.S FDA allowed an initial CBD drug that could treat – Epidiolex. The same year, the global CBD markets were valued at USD $4.6 billion. This is according to Grandview Research, which evaluates $4.6 billion. But according to research, the market will swell by a compound annual growth rate of 22.2 percent between 2019 and 2025.
As technology advances and manufacturers discover more ways to market, produce, and develop various types of CBD, for instance, various administrations and concentration options, the consumer demographic is peaking. That’s also another reason for your own CB business. If you wanted to, but you have been putting it off, now is your chance to get started and capitalize on this massive industry. Even with a pandemic continuing, now is the best time to start your own CBD business. Here some reasons why:
CBD is Already Booming
Unless you’ve been living under a rock, you must have heard about CBD. Cannabidiol is one of the many compounds found in the cannabis plant that may help with conditions that are symptomized by anxiety, pain, inflammation, or seizures. It differs fundamentally from another famous cannabis extract known as THC or tetrahydrocannabinol. THC provides the famous (or infamous in most cases) euphoria and comes with some intoxicating effects. But CBD is not like that – CBD it’s neither intoxicating nor psychoactive.
The fact that it doesn’t alter your state of mind is what made it so popular as a therapeutic cannabis extract. If you’re considering investing in a CBD business, now is the time. Not only the industry is thriving, but experts predict it will remain bullish moving into the future.
According to Grand View Research, the global legal cannabis market should reach $73.6 billion by 2027. This huge growth will mostly be influenced by the increasing legalization of marijuana for both recreational and medical use. The ever-expanding body of research findings pointing to the therapeutics proprieties of marijuana will also push the popularity of the plant amongst medical users, further encouraging the growth.
The Population is Focused on Health
The recent pandemic has seen people increasingly focused on health. That includes eating healthy, working out, wearing masks, and using products that can advantage their overall well-being. Not to mention that non-intoxicating cannabidiol CBD products have many users. Consumers belong to all countries, age groups, and even species.
Not kidding. People are feeding cannabidiol products to their pets to thunderstorm anxiety and relieve pain.
As people learn about the benefits of CBD, many business tycoons have hopped into the fray with top-nothc CBD products. It’s a competitive industry, and many brands, small or big, are wrestling to get a piece of it.
Patterns Have Never Been More Predictable
Cannabidiol has been around long enough to secure market profit, helping you reduce startup risks. Due to lockdown uncertainty, cannabis and CBD products are seeing tremendous usage. By 2026, experts foresee that the CBD market will reach $89 billion.
This means that PureHempFarms can expect to see even higher benefits, while the pandemic is still happening. That’s available for novice entrepreneurs who still battle in the uncertainty of whether to open a hemp business or not.
What’s more, with many people having to stay home due to government-mandated restrictions, there are fewer shopping options. As such, many rely on online retail businesses to get the products they need. That makes online business perfect amid a pandemic and a post-pandemic world. Ever since the outbreak, E-commerce revenue has increased by 37 percent. Surprisingly, 42.5 percent of those sales come from the wellness and health industry. This upsurge makes it a great time to start an online business within those sectors.
With all these changes in the market, now is the perfect time to start your own CBD business. With the rise of cannabidiol, predictable spending patterns, a focus on health, the CBD market it’s an all-time high.
How to Start a Hemp Business?
Make sure your state allows it.
Currently, almost 15 states have come out with pro-cannabis laws; the rest of the state are vaguely neutral or silent. For instance, California (the biggest cannabis market in the U.S) has three different, and likely applicable, authorizations and regulation that allow hemp cultivation. That means you can’t cultivate hemp in any specific U.S county without a license. Not to mention that in specific regions, the FDA currently bars the presence of CBD in food products.
So, what is the safest path?
If you’re not planning to cultivate your hemp and want to get it from others, then one important key is to find a supplier that won’t back off when he receives a better offer. Issues of concern include purity, resin content, freedom from contamination, feminization, and of course, cost.
Next, whatever your source, it’s crucial to get your cGMP certifications that conform to FDA and state guidelines.
As for the industry, you can start authoritative news or blogs and information websites, reach a wider audience, and sell ads and sponsorships. If you reach 3.5 million users visiting the website, you are probably making many millions of advertisements views with CPMs in double numbers.
The fastest way into the industry – considering you don’t happen to already own a greenhouse, a farm, brands, a processing facility, and a distribution network – is a vertically-integrated operation, also referred to as “seed to sale”, a step into big business with consistently high startup costs. The costs can also include application fees and licensing, buildings, fees, land, labour, raw materials, cultivation, harvesting, and of course, anything from distribution to finance service solutions and marketing.
