All you need to know about CBD Industry
A significant amount of research into CBD products has been conducted in recent years, resulting in a dramatic increase in the popularity of CBD products. Many people had never heard of CBD, let alone tried it, but that has all changed in the last several years. Today, many individuals are turning to CBD for several reasons, and the industry is thriving. Cannabidiol (CBD), a compound found in hemp and cannabis plants, is becoming increasingly popular as a dietary supplement because it offers a wide range of health benefits.
The global cannabidiol market was worth USD 2.8 billion in 2020 and Hemp-derived CBD is expected to grow at a CAGR of 23.4% post-pandemic, based on rising awareness among consumers and increasing demand in the pharmaceutical sector. The demand for cannabidiol (CBD) for health and wellness reasons is strong due to its therapeutic qualities, which is a major factor driving the market growth. The growth of CBD products has been so fast that industry researcher BDS Analytics forecasts the US CBD market will exceed $20 billion in sales by 2024. According to Consumer Reports data from 2019, over 64 million Americans have tried CBD products in the previous 24 months. Many people believe that CBD has helped to replace prescription medications and that is most popular among those aged 18 to 29. A typical CBD consumer spends between $20 to $80 per month on goods, with very few spending more than $160.
Over the last several years, many variables have come together to contribute to the thriving CBD sector. Some of the items that have aided in this process are as follows:
More CBD Vendors
There are currently more sellers of high-quality CBD goods than ever before, which means that consumers have a wide range of alternatives when it comes to purchasing the items they desire. You can buy them both online and in-person, and you’ll have no trouble finding the goods you’re looking for. As the popularity of CBD has increased, so has the number of sellers. Of course, it is critical for consumers to always buy from a respected vendor in this sector to guarantee that the items they purchase are safe and effective.
State Law Amendments
Laws governing the purchase and use of CBD products have also changed in recent years, giving the sector a significant boost. The production, possession, and sale of CBD products are now legal in the United States, thanks to the 2018 Farm Bill. The Farm Bill differentiated hemp from cannabis, implying that CBD products are not classified as drugs unless they contain more than 0.03 % THC and can therefore be consumed and distributed legally. This has made CBD available to a far larger number of people, which means that more people have begun purchasing these products.
Wide Variety of Products
A rise in product variations has also had a positive impact on the industry, with vendors now offering more options than ever before. People can select from full-spectrum CBD oil, candies and other consumables, CBD drops and tinctures, topical treatments and bath additives, skincare and hair care products, and much more. This means that locating a specific product is now much easier. Because of the ongoing buzz surrounding CBD, you can easily discover thousands of items on the internet. Just by doing a quick Google search, you will find hundreds of companies offering to ship CBD products straight to your front door. These CBD products are not being sold just on brand sites but well-known e-commerce marketplaces like Amazon.
People Are Becoming More Aware of CBD
Another factor that has benefited the CBD business in recent years is that people are becoming more aware of and familiar with cannabis related products. As the public becomes more educated through new research and press stories, cannabis-related products are slowly losing the stigma they have carried for decades. People are converting to this natural medicine for its general healing properties, mostly in cases of mental health, pain relief, and improving sleep, all without posing any severe side effects.
Roadblocks in the CBD Industry
The CBD industry’s potential has prompted many people to explore how they can start a CBD business. The sector is not without its challenges, particularly in light of the everchanging legal complexities, but the opportunity is significant. Starting a CBD business requires all of the hard work and effort that goes into establishing any other company, but also the unpredictability of a changeable legal landscape (and all the issues that accompany it). However, in a new sector poised for exponential development, the hard work now may be well worth it in the future.
Just because the 2018 Farm Bill made industrial hemp and, by extension, hemp extracts such as CBD oils legal in the United States doesn’t mean there aren’t substantial regulatory concerns surrounding the industrial hemp business. The 2018 Farm Bill effectively removed CBD from the Federal Controlled Substances Act and the Drug Enforcement Agency’s supervision. Instead, it delegated control of the hemp sector and CBD oil to the FDA. Currently, the FDA is still devising regulations, leaving the CBD industry in a sort of gray area.
Marketing and advertising CBD products can be tricky. In a highly scrutinized business like the cannabis industry, it is important to understand your legal duties and to play it safe. While CBD businesses await more legislative guidelines, it is crucial not to base your marketing approach on CBD’s alleged advantages. It’s also critical to keep up with new developments as the FDA releases new regulations.
When operating in the CBD business, you need to understand the laws and regulations of the state where you live, as well as the locations of your customers. If you are looking to enter the CBD Industry, you need to keep an eye on the following:
- Government Regulations: Make sure you follow the federal requirements for exporting CBD in the United States. For example, no matter what type of CBD you ship, certain jurisdictions demand that it be produced from hemp rather than cannabis and contain 0.3 % or less THC.
- Courier Policies: All couriers who ship CBD have their own policies and guidelines that you must adhere to.
- Packaging and Labeling: Your produced items must comply with CBD packaging and labeling requirements and laws.
- Farm Bill Compliance: If you are a distributor, you must ensure that your products are sourced from trustworthy producers under the Farm Bill. They must follow the new CBD cultivation and production requirements. If you are a farmer or grower, you must carefully adhere to the cannabis cultivation laws.
Fulfyld as your CBD Fulfillment Service
As with any business, CBD businesses require an efficient e-commerce order fulfillment process. Your brand’s reputation is dependent on the speed and quality of its order fulfillment. As this developing industry expands, it’s critical to have an experienced CBD fulfillment partner who has the capacity to manage your order logistics. At Fulfyld, our advanced systems partnered with our experienced team is what allows us to provide unbeatable service for our CBD clients. We understand that these products especially are typically perishable and require delicate handling. We will work with your brand to ensure all orders arrive accurately and safely. Contact us for more information.
