While investments of several thousand dollars in equipment and research teams might be everything that crosses your mind while thinking of starting your own CBD brand, the fact is that new business models such as private label CBD manufacturing are surging in the industry and the barriers of entry are falling for entrepreneurs and savvy business individuals.
The cannabidiol industry in the United States and other western countries has been changing during the last years. The following three factors are making it easier than ever to start a new CBD brand and be part of this rapidly growing business.
1) Public Awareness is Increasing Exponentially
You might recall those days when even mentioning the word “cannabidiol” could make for an uncomfortable conversation and sceptical looks. However, nowadays people are starting to know more and show interest in the beneficial properties of CBD. Efforts to differentiate hemp extracts from the psychoactive components of marijuana have been successful in changing the image that people had of the cannabidiol industry.
The “vape” trend that is taking place in the United States and Europe is certainly helping CBD businesses. Vape pens and cartridges are not anymore used exclusively by people who want to quit smoking, but also by those who want to enjoy the benefits of hemp tinctures in a delicious and satisfying way.
2) Legal Changes
While efforts to propose the legalization of CBD products across the United States have been present for a long time, the Farm Bill passed in 2018 has certainly been the biggest win for the cannabidiol industry in the country. This document officially allows the production, sale and consumption of hemp-derived products as long as they contain THC levels below 0.3%.
As expected, the passing of the United States Farm Bill has encouraged the appearance of new CBD companies in the market. More new customers are also appearing as the consumption of cannabidiol is now legal nationwide, removing the strange grey zone between federal and state law where it stood for years.
But these legal changes are certainly not only happening in the United States. Canada, Uruguay and most countries in Western Europe have either legalized CBD products or even outright regulated the consumption of any hemp-derived substances, including marijuana.
3) Wholesale CBD Manufacturers and Private Label Suppliers
Partially because of the legal changes in the cannabidiol industry within the United States, new wholesale manufacturers have come to play, offering the perfect solution for individuals wanting to start their own CBD brands without the initial investments required to establish in-house manufacturing facilities.
These wholesale CBD manufacturers in the United States have the most advanced equipment and are able to produce thousands of tinctures, capsules and edibles for individual brands all across the country. As an entrepreneur, you have the opportunity to have customized products readily available for your customers. Rather than having to take care of the growth, extraction and manufacturing processes, you can focus on building your brand through marketing campaigns and an approach to customer satisfaction.