The business of CBD is already substantial in the US and globally. Now that Congress approved the new Farm Bill and President Trump is about to sign it, the CBD market will see further astronomical growth. Solidifying the legal position for sellers and producers effectively tips the CBD market as one of the most alluring businesses for entrepreneurs. This is largely due to the fact that that so many millions of people with illnesses are already taking CBD as an alternative treatment. Now there is every incentive for CBD to go mainstream.
There is an unprecedented opportunity for ethical suppliers in the CBD market to solve real challenges, such as working with researchers and Doctors to learn more how it can substitute harmful opioids – and making sure US produced products, free from pesticides provide consumers with a safe and enjoyable experience they would want to repeat.
The new law is removing the final barrier to entry:
The Farm Bill of 2014 signed, into law by President Obama, was a huge step towards relaxing of hemp regulations. Unfortunately, hemp remained on the CSA list of illegal drugs even though some states had legalized it. At first CBD products were available in a few head shops and they were recommended by a few doctors. Despite federal restrictions, by 2018 CBD products had spread to natural food stores, more doctors’ offices, cafes and beauty aisles. CBD is being used for nearly everything including pain relief, epilepsy, endometriosis, PMS, bug bites, and skin care products.
The CBD industry is expected to exceed $500 million in 2018 and is set to explode once the Farm Bill of 2018 is signed into law! The Farm Bill of 2018, which was passed by Congress on December 12th, 2018, has made huge strides towards legalizing hemp and CBD oil. It:
- Removes hemp from CSA’s list of illegal drugs.
- Allows farmers to grow industrial hemp.
- Authorizes farmers to obtain insurance for hemp crops.
- Significantly expands the definition of hemp to include extracts, seeds, salts, acids, isomers, salts of isomers and cannabinoids (including CBD oil).
Once it is signed into law, the Farm Bill will give various states authority to regulate commercial hemp farming.
In essence, once passed into law, the Farm Bill of 2018 will allow CBD oil to be legally sold in all 50 states! This is great news for those people who need CBD oil for medical reasons or those who prefer natural supplements, and natural skincare and haircare products. It is wonderful news for entrepreneurs who are interested in the CBD value chain. Huge companies, which were so far hesitant to enter the industry, will finally participate in it.
The Size of the CBD Oil Market and the mega trend theory:
Based on solid digital research, Edmon Mamane, the CEO of Terravidaonline.com shared some insight on how CBD is anticipated to become a mega trend. The demand for CBD oil has been growing exponentially as consumers were looking for natural remedies particularly for pain relief (e.g. cancer, arthritis and migraines) in the face of the growing opioid crisis. The growth has been happening through word-of-mouth only since no marketing has ever been done. Now, the Hemp Business Journal estimates that the CBD market will grow to a $2.1 billion market in consumer sales by 2020 with $450 million of those sales coming from hemp-based sources. The cannabis industry analysts, the Brightfield Group, are even more optimistic, estimating that the CBD market will grow to $22 billion by 2022! Various experts have their own ways of making estimates and they differ in their estimates, but one thing is for sure, the CBD industry will be a multi-billion-dollar industry in a few years’ time.
The implication is that one can make money either from growing hemp or from processing it to make CBD oil or from selling the CBD products. There is a huge spin-off for support business such as marketing and technical consultancy. New jobs will be created in the whole value-chain of hemp and CBD oil.
How Businesses can Get Involved in the CBD Market:
TerraVidaOnline.com sets up entrepreneurs in the shortest time frame to sell their own CBD brand. As a well-established American manufacturer of non-GMO certified CBD products, they support a large number of retailers. In their laboratories, they produce a full product range that covers CBD oils, creams, anti-aging products, pet food, pet products, etc. Any entrepreneur can white-label these products and Terra Vida can drop-ship the products globally. White labeling is “a legal protocol that allows one product or service to be sold and rebranded under another company’s brand.” There is no need to invest in the learning curve of growing hemp, producing oils and the subsequent products. All the work has been done for you. You immediately have a range of products under your name and you focus on marketing them. Many interesting approaches exist to enter the CBD market, for example:
- Buy an existing health website and then roll out your new CBD brand as an additional product that can be bought online.
- Create a new branded website that matches the CBD brand. Now is the best time to do this since competition levels are not high yet.
- Invest in a digital PR campaign. Whether you follow (a) or (b) above, you need to launch your brand properly. Many mainstream news sites are becoming more and more pro-CBD, and the Farm Bill is big news on which your launch can ride.
- Amazon.com: Either create a new storefront or purchase an existing one and then add your new branded products to it. Then market!
- Build a strong affiliate network. Offer a reasonable commission on this appealing product line that has recurring revenue. Many affiliates on many platforms will jump at the opportunity.
- Other marketing channels. Talk to a marketing expert about other marketing possibilities: there are many exciting options.
This way of starting your CBD business saves you time, has zero franchise fees and R&D costs so you can invest a good amount of money on e-commerce demand generation. You can have many recurring customers at a global level because people require CBD everywhere.
Conclusion:
The number of CBD startups will likely increase thanks to the new Farm Bill. Products with low to zero THC, that are guaranteed under US supervision to be free from pesticides, will lead the way to recurring CBD. This, in turn, may help to reverse the deadly effects of more dangerous medicine such as opioids – and provide millions of people with a safer alternative option. Now, Doctors, researchers, and government need to work together to do even more research about a large body of evidence which already suggests CBD is a breakthrough alternative.
