The cannabis industry is one of the fastest-growing in the country, and CBD is one of the most rapidly expanding sectors within it. As the founder and owner of a CBD company, I have seen firsthand the incredible growth potential in this industry, as well as the obstacles that must be overcome to capitalize on it. Currently, CBD companies offer a wide variety of products. However, this diversity will only increase as more companies introduce products that are specifically designed to target each of the more than 100 minor cannabinoids found in hemp plants.
Formulations focusing on cannabinol (CBN), cannabigerol (CBG), and other compounds and mixtures will become available for specific use cases. Despite being legal at the federal level, CBD companies still face difficulties when it comes to obtaining capital and standard services from banks and other financial institutions. Additionally, the FDA's classification of CBD as a drug limits its ability to be marketed as a safe and effective substance. To ensure product quality, more precise federal regulation is needed.
Once this happens, I believe that CBD will reach the mainstream of physical retail, with large chains offering a range of topical and ingestible products in various categories and applications. This could greatly expand the market and benefit several components of the supply chain, including hemp producers and laboratories that carry out extraction, distillation, crystallization, and isolation of CBD from plants. Large companies have been hesitant to adopt CBD due to its “Wild West” market. But once regulations become clearer and more stable, I think many corporate giants will seek to diversify their product lines with CBD and add new products that open up avenues for growth.
Companies like Procter & Gamble, Johnson & Johnson, Coca-Cola, Unilever, and more can get in on the game by acquiring current leaders in the CBD market. This will also help educate consumers about cannabinoids so they can feel safer when buying regulated products. CBD companies will need to improve their quality assurance and compliance efforts to survive. Suppliers that already sell high-caliber products will benefit from their investments in R&D and production, which have necessarily reduced ROI.
The future of CBD is promising but still depends on crucial developments. The CBD industry is an unstoppable giant that is already worth billions of dollars. Millions of consumers have made their preferences clear, but CBD companies still have to overcome many unique obstacles before they can fully capitalize on this potential. The FDA's classification of CBD as a dietary supplement, unrestricted access to financial services, and an intelligent regulatory framework that increases product quality and safety across the board are all crucial advances that must be made for this industry to reach its full potential. For those looking to enter the ever-evolving CBD market, there are several business opportunities available. You can label and package products yourself or buy them in bulk for mixing with carrier oils and solutions for making cosmetics.
You can also become a distributor by contacting manufacturers to organize distribution agreements or form a cooperative with other sellers to save on taxes, raise capital through investors, and minimize outgoing costs. Finally, you can open a restaurant or cafe where guests can carefully read the CBD dishes before enjoying them socially. Knowing what will happen to stocks is always an informed assumption, but some guesses are better than others – and it appears that investing in CBD is a smart move.
