With up to 7% of the US population estimated to consume CBD at this early stage of the cycle, it represents a tremendous opportunity.
To say that CBD cannabidiol has become a megatrend is certainly no understatement. Following in America’s footsteps, governments all over Europe and worldwide are now allowing producers and retailers to participate in this futuristic new trend. Industry growth is predicted to increase 16 times over the next 5 years: from $1Billion to $16Billion per annum, with estimates that 7% of US citizens already consume CBD. This is precisely why analysts believe CBD is the future.
The ways in which investors and businesses get involved in CBD cannabidiol vary significantly. Smaller businesses seem to enter this play by creating new CBD brands and making use of white-label suppliers, as well as through affiliate marketing. Larger institutional investors seem to buy up hemp farms and companies with established supply chains, all which we will discuss below.
CBD wholesalers who make the industry:
The man backing many American businesses who launched their own CBD brands, Cody Alt, is the CEO of Kushly.com, a well-known CBD wholesaler and white-label provider. He developed a reliable supply chain that many physical retail stores and online storefronts now rely on to deliver high-quality CBD cannabidiol to their recurring and rapidly growing clientele.
Sam Conley, the COO of Kushly.com said the following: “New brands come to us not only because we provide the most efficient way to start a new CBD company. Another underlying reason is that they require only the highest quality CBD products produced from fully audited, FDA and US Hemp Authority certified farms. So by exceeding FSMA standards, it is literally assured that customer retention will be exceedingly high”.
Who are the retailers getting involved in CBD?
A range of physical stores and online retailers have started to embrace one of the biggest opportunities yet in the alternative health space. Below are some examples of industry participants:
Online retailers: In the US and Europe, online retailers with an established presence are fast adding CBD to their product ranges in order to grow their inventory and revenue streams. Recently, even mainstream publishers like Mashable started adding CBD to their storefronts.
Worldwide SME’s participating in the US economy: There are literally thousands of smaller entrepreneurs and website owners who participate in the US economy from as far abroad as Asia and Africa (also Israel). These dedicated entrepreneurs work as affiliate marketers, Amazon storefront owners and even as brand owners through partners like Kushly.
Physical retailers: The latest is that even CVS are selling CBD over the counter. It has become common for health stores, speciality retail shops and even CBD vending machines to act as physical supply chains. Most physical retailers tend to opt for white-label solutions from high-tech CBD producers who are experienced in quality management.
Image credit: Kushly.com
A Green, ethical and futuristic business activity?
Many do feel that getting involved in this industry is also an opportunity to do good, as there are so many illnesses that are being treated with CBD, with more Doctors than before recommending it. The very notion that CBD might become a viable alternative to addictive opioids, brings hope to millions of people.
Exciting product lines:
The growth in CBD consumption saw many product lines opening up. In the case of Kushly, for example, consumers can buy various types of CBD oil and tinctures, capsules, gummies which are eaten just like sweets, skincare products for absorption, pet products as well as CBD bath bombs, which are infused with aroma and used in bathtubs for absorption through the skin.
Why the rush in CBD?
There are three reasons: Firstly, President Trump signed the New Farm Bill, legalizing hemp farming and the subsequent production of products like CBD. Secondly, the approximately 7% of US citizens taking CBD are not doing it for recreational purposes: they mainly do it in order to treat serious and chronic medical problems, not limited to Alzheimers’, epilepsy, anxiety, ADHD, insomnia, depression, psoriasis – and a plethora of neurological disorders. Thirdly, addiction problems in the US reduce life-expectancy, as discussed by Dr. Marc Siegel here. Therefore, alternative treatments that are non-addictive, are surging in popularity. The challenge though, is that CBD is the only product that treats such a wide range of conditions.
As the CBD trend accelerates, more patients will clear the matter with their Doctors and make a decision on whether or not to take CBD as an alternative treatment. The many ways in which investors and businesses can get involved with this industry, makes it a “people’s business”, not just limited to a few pharmaceutical corporations. To some, it is a “green investment”, to others, more notably consumers, perhaps it will turn out to be a defining lifestyle choice. Research and legislation are consolidating rapidly on a global scale. As millions of people seek an alternative treatment for and thousands of investors the next big wave, this is a trend to watch closely.