The CBD industry is flourishing and has birthed many entrepreneurs wanting to create something new and exciting. Cannabis has been in the dark for many years despite its medicinal value. Significantly CBD may help in dealing with many health conditions. Luckily, that’s changing lately, with many countries and states legalizing the use of cannabis for both medicinal and recreational purposes.
Innovators, entrepreneurs, and investors can benefit from the high demand in the CBD industry for a better ROI. So if you are keen to enter the CBD industry, here are six reasons that indicate that it is a good choice.
1. Product Value and Diversity
The CBD industry is not just a flourishing one but also a diverse one in itself. You can find various CBD products ranging from CBDistillery to CBD topicals for acne. That gives CBD manufacturers focus on creating unique CBD supplements for their users. For instance, you can create CBD supplements like pills and capsules that fall under the health and wellness category. Similarly, if you incline towards skincare, the list of CBD topicals like body butter, facemasks, bath bombs, and lotions is endless too. The best part of all is that with more research about CBD and cannabis, the variety of CBD products may expand further in the future.
2. Lower Regulations
The U.S CBD industry has witnessed massive growth lately, thanks to the Farm Bill 2018. The bill legalized the use of CBD products all over the country. That boosted the sales to revenue of $358 million from $108 million in 2014 when CBD products were still not legal in many states. The farm bill also legalized the cultivation and sale of hemp in the country. That played a significant role as well since manufacturers use CBD extracted from hemp rather than marijuana plants. A high concentration of CBD and a low concentration of THC is why manufacturers use hemp-based CBD. Though CBD products may contain THC, the authorized level states that it must not exceed 0.3%.
3. Increased CAGR in the CBD Industry
The growth rate in the CBD industry has been increasing and may continue to remain that way, looking at the market trends. Cannabis was not much of a mainstream herb in the past, probably due to its psychoactive effects of THC. But, the separation of THC from CBD changed it all. Estimated reports suggest that the CBD industry may reach $13.4 billion in sales with a growth rate of 21.2% by 2028. Through proper management and execution, any business owner can make profits with that growth rate. While the numbers mentioned above represent the CBD industry as a whole, the CBD oil industry alone may experience a growth rate of a whopping 38.4% by 2027.
4. Pet CBD Market
The CBD industry is not just beneficial for humans but also for pets, mainly dogs. Many pet parents use CBD products to help their fur buddies deal with various issues like anxiety, aggression, etc. CBD may help deal with health conditions by interacting with the endocannabinoid system (ECS), present in almost all mammals, including dogs. That is the primary reason CBD may be efficient in helping with pet problems as well. The opportunity in the pet CBD market is also increasing recently, with more pet parents relying on CBD for their pet’s overall health. From yummy treats to CBD oils for pets, the product line in the pet CBD market is also diverse.
5. Customers Understanding the True Value of CBD Products
Here’s another factor contributing to the growth of the CBD industry. Users are now able to differentiate between average and high-quality products. Surprisingly, many CBD brands are failing to deliver the customer’s expectations. So, as a CBD brand or company, if you can reach the users’ expectations, you can boost sales. Moreover, achieving superior quality CBD products is not rocket science anymore. Through the proper extraction techniques, procuring high-quality raw materials, one can manufacture the best quality CBD products. Cultivating your hemp is one of the best ways to ensure the final products are of high quality.
6. High Scope For Product Research and Development
The best part about CBD is that it may help deal with various health conditions, physical and psychological. For instance, research suggests that CBD can be efficient in reducing chronic pain and inflammation. So whether the user experiences inflammatory pain caused by arthritis or pain from a tedious physical exercise, CBD products may help. CBD may also help reduce insomnia, anxiety, stress, and depression. As it serves various purposes, it allows manufacturers to create products and get into multiple niches in the CBD industry. You may choose to develop products for pain relief or anxiety relief initially when entering the market. Moreover, the CBD skincare industry is also flourishing since CBD may help deal with skin problems like acne, dry skin, etc.
Final Thoughts
The CBD industry is a fast-growing sector. It is not only flourishing but also an easy one if you plan accordingly. Whether you are keen on investing in a CBD company or creating a brand, high-quality products play a crucial role in its success. So, it’s essential to choose the appropriate niche, customer base, and robust business plan to make huge profits in the CBD industry.