The legalization of marijuana both for medical and for recreational use is on the rise around the world. This fact is driving the creation and progress of many new businesses and industries related to marijuana. One of the most popular and most profitable ones is definitely the CBD industry. Cannabidiol, also known as CBD, is just one of more than 100 different compounds found in the marijuana and hemp plants. However, it is one of the most beneficial compounds for humans, having its application in numerous branches of health and wellness. The CBD industry is very big now, but it will certainly become even bigger in the future. Therefore, it is one of the best business opportunities for people who are interested in this niche. The potential for ROI is absolutely huge, according to the most recent stats. If you’re not convinced, check out our favorite reasons which prove that investing in the CBD industry is a great idea.
1. CBD Is Not the Same as THC
There’s a lot of stigma about the compounds and products derived from cannabis. However, the prejudices are slowly disappearing. Nowadays, most people are more aware of CBD and realize that CBD is not the same as THC. Why is this important? It’s incredibly important to differentiate between the two because CBD has no psychoactive properties that THC has. When you consume cannabis in its pure form, the “high” which affects the brain is caused by THC. When you take CBD in any of its commercial forms, you get all of the health benefits but you do not experience any psychoactive effects. As a result, CBD has a different legal status around the world compared to THC and can be sold in various forms.
2. CBD Can Be Used in Many Different Ways
As we have mentioned, the application of CBD is extremely broad. It can be used in many different ways and for many different things. Therefore, it’s very easy to start a business and succeed as an entrepreneur if you focus on selling one of the CBD-related products. The most popular ones and most sought-after include CBD oils and tinctures, edibles, creams and lotions, skin patches, and vaporizers.
CBD Oils and Tinctures
CBD oils and tinctures are by far the two most popular and best-sold CBD-derived products. They have numerous health benefits and are very easy to consume. Both are taken sublingually, under the tongue, by using a dropper. Users can mix these two with other carrier oils to dilute them and give them a better taste as well. The most popular ones are hemp seed oil, MCT, and coconut oil.
CBD-infused edibles are also very popular and desirable on the market, which should reach $4.1 billion in 2019. CBD edibles include both beverages and dishes and can be quite tasty and diverse. Users can either buy such edibles or they can make their own by adding CBD oil to regular food.
CBD creams and lotions are also very beneficial. They can be used on a daily basis for treating arthritis, inflammation, sore muscles, and skin conditions. They are just as effective as CBD oil because our skin has endocannabinoid receptors in it, which CBD reacts with.
CBD Skin Patches
CBD skin patches are very good, especially for pain management. They are placed on the skin and activated by body heat. These skin patches can release small amounts of CBD over a period of around 5 hours so they offer prolonged effects and benefits.
Finally, vaporizers are becoming more and more popular among young adults. The vape industry is on the rise, so combined with the CBD industry it offers a lot of potential for profits. CBD has almost instant effects when inhaled, so it’s great for acute pain and anxiety relief. Mind you, the anxiety statistics show the anxiety disorder treatment market is worth $42 billion!
3. Medical Benefits of CBD
CBD has many different health benefits. Consequently, it can be used by a very diverse assortment of people. If you enter the CBD industry as an investor, you can expect your customers to come from all walks of life. CBD is perhaps most popular for relieving pain. Unlike traditional painkillers, it has no significant side effects and does not lead to addiction. Other major benefits include the treatment of depression and anxiety, cancer, and neuroprotective properties.
4. CBD Industry Is on the Rise
If you are an entrepreneur looking to invest in the CBD industry and start your own production facility or a retail shop, the growth trends are what should matter to you the most. We can confidently say that the growth trends regarding the CBD industry are very promising. Currently, around 7% of Americans are using CBD in some form. At the moment of writing this article, the US CBD industry is worth around $202 million. But, it is expected to grow and reach $2.1 billion by 2020, which is a massive increase in value.
5. CBD Products Are Sold Everywhere
One huge benefit of CBD-derived products and of this industry is that they are sold literally everywhere. The highest numbers of sales happen online, but other channels are also very popular. After online sales, the most popular ones include natural and specialty retail, practitioner sales, and smoke shops. All of these are on the rise but online shops show the most promise. Starting an online retail business or a dropshipping website is a lot easier than opening a brick and mortar one. Therefore, the CBD industry is a good business opportunity for those with a limited budget for investment.
6. CBD Is Great for the Animals As Well
CBD products are not beneficial just for humans. Humans’ best friends can see a lot of benefits as well. Nowadays, people spend a lot of money on their pets, mostly cats and dogs, regarding them as family members. They want the best for their animal friends, which includes buying CBD products. At the moment, the market is dominated by products intended for cats and dogs. However, this is bound to change in the near future. Namely, the CBD pet-and-animal product sales are expected to grow and reach $125 million by 2022.
7. CBD Awareness Will Continue to Grow
Last but not least, CBD awareness has improved, but there is still some room for improvement. The prejudices regarding cannabis and cannabis-related products are decreasing almost every day. Therefore, in the near future, the popularity of CBD-infused products, including beverages and food, is expected to grow significantly. Moreover, the prices of CBD oil are going to increase and the industry’s growth will continue. More countries will also establish CBD standards, which will improve the trust consumers have in this new industry.
She has spent the last decade assisting entrepreneurs with starting new businesses, obtaining startup and working capital and growing their customer base using various digital marketing strategies.
She enjoys writing about her experiences as an entrepreneur and using data and information from reliable sources to back up what she writes about. Through her writing she aims to educate other entrepreneurs on how to obtain capital and build successful businesses doing what they love.