If you’ve been wondering about industries to invest in, you know the CBD industry is growing by leaps and bounds. It’s already surpassed the billion-dollar mark. Some experts think it’s well on its way to the $20 billion mark in the next five years.
These numbers make it clear CBD is an opportunity knocking, but how do you get in? Any one of these CBD business opportunities could be your ticket to cashing in on the green gold.
Get Into Hemp Farming
The CBD market got a huge boost last year when the 2018 Farm Bill legalized hemp across the board. Hemp, by definition, contains less than 0.3% THC. Most hemp plants are actually much higher in CBD.
CBD is in a legal gray zone, with some arguing that the Farm Bill legalized hemp-derived CBD products.
Legalization has boosted a growing demand for CBD products. Some states have already legalized CBD alone. Others have also legalized cannabis and cannabis-derived CBD.
Currently, there aren’t many people farming hemp, although that’s set to change. As demand for CBD continues to expand, many people will invest in hemp farming. Manufacturers want their CBD from hemp.
If you already own a farm or have always dreamed of having one, then hemp could provide the perfect opportunity. Of course, CBD isn’t the only valuable hemp product. This plant can also be used as a food source and to create bioplastics.
Processing Presents CBD Business Opportunities
Farming may not be your style, but that doesn’t mean you can’t start a business in the CBD industry. One essential area entrepreneurs often overlook is processing.
There’s a couple of missing links between hemp farmers and CBD oil distributors. Processors take the harvested plants and turn it into CBD oil. Suppliers and distributors create products, then send them to retail outlets.
Some farmers and some distributors also take care of the processing. Others want to hire a third party to handle this job.
Starting your own processing operation from scratch is an expensive venture. That’s why many hemp farmers and distributors choose to work with a third-party processor. Instead of raising funds to create a start-up, see if there’s an opportunity to invest in or buy ownership of one in operation.
If you’re involved in farming or distributing, then processing could be a logical next step. It may help you grow your business.
Become a CBD Distributor or Supplier
Another way to get into the CBD industry is to become a distributor or supplier.
Once the CBD oil has been processed, it’s time to turn it into an actual product. Sometimes, this is as simple as bottling the oil up and packaging it for retail. In other cases, the oil may be used to infuse food, drinks, and even topical creams.
Tinctures, vape oils, and CBD capsules are other common products.
A supplier or distributor then sells these products to retail clients. They then sell them in their stores. More rarely, distributors sell directly to consumers, but usually at wholesale prices.
You may want to start your own line or teaming up with a known brand to create white label CBD products. As consumer interest in CBD expands, many reputable brands want to craft in-house lines.
If you want to distribute products, you’ll need to find a great supplier. In some cases, you’ll turn to a processor to provide you with high-quality CBD oil. In other cases, you may partner directly with a farm growing and processing hemp plants.
Go Into Retail
At the other end of the CBD spectrum, you have direct-to-consumer retail outlets. These CBD sellers offer products to the general public.
If you’re wondering how to become a CBD seller, there are a few different ways. One is to open your own store. If you plan to open a brick-and-mortar store, you’ll need to find a retail location. You’ll also need to check regulations to make sure you can sell in your city or state.
You may also need to hire employees, and you’ll, of course, need to order CBD products to stock your shelves.
It can be a little easier to start an online business selling CBD. You can craft a website and fill orders from your home. You need to invest in advertising and shipping, but you’ll have less overhead than a physical store.
You may also be able to find an affiliate program. Finally, there may also be franchise opportunities in your city or state.
In any case, you’ll need to tap into the network of local suppliers and distributors. You want to provide your customers with high-quality products. Do some research on which suppliers offer the best CBD oil, or discover national brands that customers love.
Finally, you may even decide to team up with a distributor and create your own in-house brand for your shop.
The Health and Wellness Market Presents Unlimited Opportunity
If you’re wondering about other CBD business opportunities, you can look at the health and wellness industry. New scientific research shows CBD has many health benefits. People are using CBD for everything from pain management to anti-aging.
The opportunities here are almost limitless. You may consider opening a store that caters to medical patients. A wellness line of CBD products could focus on lotions, or it may include candles and bath products.
Get Growing on the Road to Success
No matter which of these CBD business opportunities caught your eye, there’s no better time to get started than now. The growth of the CBD market will reward those who got on board early.
Starting your own business can be challenging, but it’s a rewarding experience. Take some of the guesswork out of it with our great advice. We have tips for sustaining growth, insight on closing bigger deals, and so much more.