Why Now is a Great Time to Start a CBD Business
Were you considering starting a CBD business before the pandemic? Has this current situation caused you to consider adding CBD products to your existing business?
Whether or not selling CBD was on your pre-pandemic radar, right now is the perfect time to join this blossoming industry.
In the next three years, CBD industry sales are expected to surpass $20 billion. These numbers are only going to increase in the face of this pandemic.
Here’s what experts are saying about the future of CBD and why it’s a great time to join the market.
People Want to Improve Their Health
According to Yahoo! Finance, sales of wellness items (including CBD) have increased by 21.6% since shelter-in-place swept the nation. Prior to the pandemic, preventative health measures were off the radar.
Now more than ever, people understand the importance of promoting wellness.
According to our own study conducted in partnership with YouGov, we found that over half of the Americans polled are placing a greater emphasis on their health than they did before the COVID-19 outbreak.
Wellness Was Already On the Rise
The CBD industry has already proven fruitful for many businesses. Health and wellness products were in an upward trajectory before the pandemic. In the past ten years, the demand for natural products increased by 52%, earning an additional $129 billion.
This jump in sales has severely slowed the growth in sales of conventional products. Conventional products have seen a 1% decrease in overall market sales almost every year within this past decade.
While both natural and conventional products have seen an increase in sales, health-conscious brands are closing the gap. Post-pandemic, we expect the demand for natural products to claim an even bigger slice of overall market sales.
The Pandemic is Generating Predictable Patterns
We are already starting to see an ebb and flow in the shopping patterns of people in the face of a pandemic. Right before the calendar turned to March, people became proactive and stocked up on health and wellness supplies.
The end of February saw a 1,285% uptick in vitamin supplement sales and a 3,117% jump in food supplement sales.
As people settled into shelter-in-place, sales slightly dipped. However, people started restocking again within a couple of weeks. Following these patterns gives you insight into inventory, projected sales, and staffing logistics.
With these predictable patterns, you receive invaluable insights that can have a profound impact on your bottom line.
eCommerce Sales are Up
Not only are health and wellness sales up, but so are eCommerce purchases. One of the most significant revenue sources for CBD businesses is their online stores.
While there is a benefit for owning a brick-and-mortar store, it’s not an expectation. Many CBD companies strictly have an online presence. It will be easier than ever to integrate your business into this community.
eCommerce revenue is up 37%. Each customer is adding 54% more items to their carts than they were pre-pandemic. Most importantly, 42.5% of those sales are within the health and wellness sector.
The trend of increasing eCommerce sales is unlikely to slow down post-pandemic. Online shopping is a quick and easy process that we were already accustomed to.
Marketing campaigns have successfully gotten us to accept “contactless delivery” as the new normal. So, you can expect a steady flow of business as society reopens.
You Might be Able to Sell for Big
Of the food and beverage sales, there has been a growing demand in the following products:
- Hemp/CBD
- Medium-Chain Triglycerides (MCT) Oil
- Curcumin
- Melatonin
All of these hot ticket items are increasingly becoming staples in the CBD industry. For instance, Joy Organics creates Softgels with Melatonin for Sleep. We also carry a line of Softgels with Curcumin.
Furthermore, MCT oil is one of the most efficient fats to help absorb CBD. That’s why we include MCT oil in Joy Organics’ Orange Bliss CBD Tinctures.
Experts project that CBD gummies are expected to see a 28% increase in sales over the next ten years. Gummies are just one of the many CBD consumables. There are also cookies, teas, and energy drink mixes, to name a few!
The options will only continue to grow as the field gets more competitive. So, getting in right before the boom gives you enough time to craft an edible of your own that can change the CBD game!
Two Types Way to Start Selling Soon
There are two primary ways that you can enter the CBD market, promote the wellness of others through this amazing product, and capitalize on this new industry. The method you choose will depend on your goals and your priorities in selling CBD products.
First, you can create your own brand. Many premium CBD business companies offer private label opportunities, which is likely the fastest route to getting your brand out there. Here are a few advantages to starting your own brand:
- Your logo may build trust with your customers if you already have an existing business or practice.
- Offline sales will not potentially send customers to your supplier.
- You won’t have to compete with your supplier’s sales or promotions.
- You can create a brand with a specific focus or niche (i.e., women’s fitness, dads-on-the-go, etc.)
The downside to creating your own brand is that it will likely be more expensive and time-consuming.
If you’re looking to start selling CBD products more quickly and on a budget, or you want to sell multiple brands, we recommend buying wholesale.
Here are a few advantages to wholesale:
- You can place an order today!
- You don’t have to be tied down to one supplier.
- You have the brand’s reputation to fall back on.
- It is easy and cost-effective.
How to Pick a CBD Supplier/Source
Selling products in a rapidly-growing market and ever-changing industry can be daunting, especially at first.
Once you figure out if you want to sell your own brand or an existing brand, your next step is to navigate the many potential suppliers and decide who to trust.
See What Clicks
The first step is to find a product that speaks to you. Your gut is an excellent gauge of what fits your vision and brand. Let it help you bring your goal to life.
Before you browse, think hard about which type of products you’re looking to sell. If you’re focusing on energy drinks and sports creams, then consider brands that market to fitness-based companies.
Those who love beauty products and skin remedies might want to check out CBD beauty wholesale opportunities.
Having a basic idea of what you’re looking for will help you quickly narrow your list of potential suppliers. Once you have seven to ten manufacturers or growers in mind, start doing your due diligence.
Check for Third-Party Lab Testing
Even if the hemp gets tracked with seed to sale programs during CBD oil manufacturing, independent labs are the surefire way to ensure you know exactly what you’ll be offering your customers.
For instance, during the production process, CBD might come into contact with contaminants or have adverse reactions with other ingredients, so you want to make sure the manufacturer implements this type of testing.
You also want to make sure you know the exact level of potency within each product. Testing is not just about safety; it’s also about efficacy.
Unbiased laboratories verify the purity of the CBD oil. If you can’t easily find the lab results, move on to a company that prominently displays them.
Sample Multiple Products
Once you’ve done the initial vetting, start finding products that resonate with you. When you feel a penchant for a specific brand, order one of their products to try.
Don’t fall in love with the first product you try. You need to compare and contrast its benefits, potency, and aesthetics with that of other CBD products.
Some companies will offer samples if you’re interested in a partnership. Consider reaching out and imploring about these opportunities.
Research Their Manufacturing Facility
Words like “state-of-the-art technology” and “cutting-edge laboratory” sound great on a website. Anyone can steal a picture of a pristine laboratory off Google Images and say it’s theirs.
Here’s what to actually look for when verifying proper manufacturing procedures:
- Good Manufacturing Practice (GMP)
- International Organization for Standardization (ISO)
- Certificate of Analysis (CoA)
While CBD products aren’t regulated, the facilities they’re produced in are. It’s essential that third parties verify the cleanliness and safety procedures used by the laboratory.
These certificates ensure the health and safety of your potential customers.
Utilize Resources
Starting a new business or selling a new product line can be intimidating, but if you partner with a business you know you can trust, it doesn’t have to be.
And before you know it, you might just find yourself getting premium CBD products into the hands of those who need them most.
An important aspect to look for in a CBD source is support. Many suppliers sell you their products and send you on your way, but there are some companies that offer the guidance and advice necessary to help your business grow and succeed.
Navigating compliance issues, regulatory changes, and banking protocols can take months—and even years—but if you partner with the right CBD source, this process will be a lot easier.
We at Joy Organics were so relieved to have the support of others in the cannabis industry when we founded our company. Now, we’re looking to pay it forward with several exciting partnership opportunities.
They all offer you the chance to join the CBD business industry without the hassle of getting it off the ground.
No matter which program works best for you, we have the resources necessary to support your CBD endeavor!
