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Understanding The CBD Marketplace
So you want to get into the CBD business? That’s entirely understandable, and as hemp farmers and producers of gold-standard full-spectrum CBD ourselves, we get it. The CBD market place is expanding faster than just about anybody expected, and meanwhile, regulation and support services are lagging behind.
However, like any good business opportunity, the CBD marketplace shouldn’t be overlooked just because there are some risks. With federally legal hemp-produced CBD available for only the last couple of years, the market stands to continue to thrive and there is still room for new farmers and sellers.
Amberwing Organics by NJ Farms offers a domestically grown, harvested, and extracted CBD product of incredible quality, and we’re always looking for new business relationships with startups, natural grocers, and anyone else who has a serious interest in offering the wellness benefits of CBD to their customers.
However, as we mentioned before, the CBD marketplace is not entirely settled and there are serious risks involved for those who don’t adequately educate themselves about the laws and compliance measures they must follow. As such, we’ve created this resource to help provide a baseline understanding of the CBD marketplace to be used as a tool by those who are interested in learning more, and possibly desire to sell or white label our full-spectrum CBD and broad-spectrum CBD products.
Although CBD was successfully extracted from cannabis by a Harvard graduate student in 1940, the compound wasn’t noticed or identified until half a decade later. However, the credit typically goes to a man named Dr. Raphael Mechoulam who was the first to identify its structure.
Although CBD would remain out of the public eye for many decades more to come, academics, students, and researchers were investing in learning more about the compound and how it affected the mammalian brain. A series of studies around the world between the 1960s and the 1980s strongly suggested that CBD did not contain the psychoactive effects known to be present with the consumption of THC. These studies were primarily conducted on primates.
In 1980, Dr. Mechoulam conducted a study that suggested a link between CBD and mild success in treating seizures. However, despite almost 80 years of scientific study and research, many studies have not been fully verified and promoting CBD as a treatment for any specific medical condition is still illegal.
In 2018, the United States Farm Bill removed hemp and CBD from the list of scheduled drugs banned by the Controlled Substances Act, and thus, the burgeoning CBD marketplace in the United States was born. And my, how it has grown.
Even just a decade ago, very few Americans had any idea what CBD was, what it did, or why someone would want to consume it. According to an August 2019 poll conducted by Gallup, 14% of Americans self-identify as regular CBD users — that is a potential customer base of almost 30 million people.
To be fair, some of the awareness and popularity of CBD has come about due to the medical and recreational legalization of marijuana, but with hemp-based CBD legal in all 50 states and medical and/or recreational cannabis legal in only 31 states, the slightly older marijuana industry cannot take all of the credit.
According to the same Gallup poll, adults under the age of 30 are the single largest group of users at 20% — another promising tidbit for potential CBD sellers given that many of these young adults will likely be CBD product users for much, if not all, of their lives.
Unsurprisingly, the West Coast states and their inland neighbors had the highest overall rate of CBD usage, regardless of age or gender, at 21%. More surprising was that the second-highest region of regular CBD users was in the South, with almost 13% of adults using CBD.
Additionally, there doesn’t seem to be much of a noticeable difference in the rates of men and women who use CBD, although the reasons they claim to use it are vastly different.
Why Do People Use CBD?
If you ask 100 regular CBD users why they use CBD, you’ll get quite the variety of answers ranging from pain relief to “I think it helps my old dog feel better.”
CBD is reputed to have a wide range of effects, and truthfully, many promising studies have suggested that there may be merit to many of these claims. But what do users have to say for themselves?
According to that same Gallup poll, roughly four out of 10 people asked said they choose to use CDB to help with pain management. This answer was consistent regardless of gender, however, women were twice as likely as men to seek CBD out to address their anxiety, and men were almost twice as likely to use CBD in an effort to help them sleep better.
Behind the categorical leader, pain, anxiety relief was the second most commonly cited reason for using CBD, with one in five people reporting this information, although noticeably higher numbers of women. Using CBD as a sleep aid came in at the third most cited reason for CBD usage with 11% of respondents replying in the affirmative.
In the 5-10% range were Arthritis, migraines and headaches, and general stress reduction. In the 2-4% range, soreness, general wellness, recreation, depression, and skincare all made appearances.
Pets, inflammation reduction, and digestive issues planked the floor of the poll at 1% or less each.
Understanding why people use a product allows a business owner to craft a true and meaningful value proposition for his clients, and the data above tells you exactly what the American public believes CBD does for them.
Things To Keep In Mind About Starting Your CBD Business:
- A few things to keep mind before committing to starting a CBD business:
- The CBD marketplace is projected to gross $20 billion in sales within the next five years.
- CBD support services like banking, advertising, and insurance are still challenging obstacles.
- The market WILL change — though no one knows exactly how — as further regulation from the federal government and the FDA are passed down.
- You cannot sell cannabis products and hemp products under the same business name or in the same storefront.
- You cannot run paid digital advertising for hemp-based CBD.
- Staying competitive in a growing market means having a superior and desirable product.
Offer Your Customers High-Quality CBD Products From Amberwing Organics by NJ Farms
Amberwing Organics by NJ Farms offers wholesale discounts and bulk-purchasing as well as white label options for its entire lineup of gold-standard, pharmaceutical-grade CBD. Get started with us today and break into the dynamic CBD marketplace with an edge.