A recent study has projected that the CBD market could be worth $16 billion by 2025. The CBD business has become one of the fastest growing industries in the United States.
CBD consumers’ behavior is a godsend to businesses.
In a survey, 71% of CBD shoppers said they feel satisfied with their purchases. 30% have increased consumption over the past six months, and 76% said they would buy more frequently.
Consumer-Based CBD retailing is a lucrative business venture. Does that mean that it’s easy to penetrate the CBD market and go up against hundreds of established distributors?
How do you identify and capitalize on CBD business opportunities in this evolving industry? Well, here is a short guide to help entrepreneurs spot profitable niches in the tight CBD market space.
Identify and Utilize Holes in the CBD Market
Often, in growing markets, consumer preferences overwhelm businesses and every brand ends up satisfying only a specific group of consumers. This leaves holes in the market caused by inadequate supplies in product varieties.
You can consume CBD through a variety of products: concentrates, vape, edibles, and tropical products. Each type of consumable appeals to a specific market segment. For instance, vapes are popular with young CBD consumers.
Find out if any of the product varieties are missing or if the market isn’t fulfilling a need. You could even come up with new ways of marketing existing products to untapped market space.
Variety is not the only thing you can capitalize on. Find other ways to make your brand more appealing to consumers. It could be the price for instance; in such a case, you can tailor your brand to be associated with affordable CBD.
The CBD market is diverse, and although it may seem overcrowded, there is always an unutilized niche and something that other retailers are missing. Finding that unique spot is what could set your business apart from other brands.
New Legislation May Create New CBD Business Opportunities
Technically CBD is legal in all the 50 U.S. states, but the laws governing its use and sale vary from state to state. That’s where complications begin.
Currently, CBD derived from hemp (a variety of cannabis with very low levels of THC) is legal for recreational use nationwide. However, in most states, CBD derived from marijuana (a cannabis variety with high levels of THC) is illegal for recreational use since the plant itself is illegal.
Only ten states allow the use and sale of CBD from the two cannabis plants for both recreation and medicinal purposes.
With time, state laws are changing in favor of the CBD industry. Keep an eye out for these changes and explore the business opportunities that they uncover.
A good example is the recent passing of the Farm Bill. This bill allows transportation and use of CBD products across state borders as long as they abide by strict regulations. The bill also promoted hemp to an agricultural commodity.
The CBD business, like any other business venture, requires careful considerations. CBD business opportunities are only limited by creativity and how eagle-eyed you are at spotting lucrative breaks in the market.
The key to any business is marketing and how to identify as a brand. A large part of the CBD industry consists of new consumers and enterprises; such a market is bound to produce many business opportunities. You only have to fish them out.