Overall, Slovik said, the formula for success is simple, even if the process is complicated.
Some trends the CBD market might experience in 2020 are increased potency of products, more brick-and-mortar CBD shops, more pharmaceutical CBD products, and more access to products online through CBD websites and e-commerce shops. In fact, CBD online sales currently account for 60% of the sales channels.
Tip: If you want to differentiate yourself from other CBD businesses, it's key to provide third-party lab testing results to validate the quality of your product.
CBD is found in both cannabis and hemp plants. CBD oil can be extracted from either plant and used to create CBD oil products. However, there is a key difference between hemp CBD oil and CBD products derived from cannabis: THC.
How to gain a competitive advantage
Just because the 2018 Farm Bill federally legalized industrial hemp and, by extension, hemp extract, like CBD oils, doesn't mean there aren't significant regulatory considerations surrounding the industrial hemp industry.
In addition, Slovik said pursuing certifications like USDA organic, Good Manufacturing Practices and FDA facility registrations are important moves to instill confidence in consumers about the quality of the product they are buying.
Hemp and cannabis are closely related; in fact, industrial hemp is actually Cannabis sativa L. The difference in name is mostly a function of a legal definition, which sets the threshold for THC content. The flowers of a hemp plant contain little to no THC, while the flowers of a cannabis plant (commonly referred to as marijuana) contain much higher levels of THC.
Full-spectrum CBD vs. CBD isolate
If you're considering getting involved in the CBD industry, you first need to understand more about cannabinoids and the products that utilize them.
CBD products are generally created in several steps. First, the raw material needs to be cultivated and harvested. For example, if you plan on using industrial hemp to create your CBD products, you will either need to cultivate or purchase a large amount of the plant. From there, CBD oil is extracted from the plant using a variety of methods. Again, you can do this yourself or outsource the process to an extraction company. Once you have extracted the CBD oil, it can be sold as a concentrate or used to infuse a variety of products. Some of the most common CBD products on the market today include sublingual tinctures, infused edibles and topicals, like gels or creams.
Ever dream of a career as a CBD oil distributor, and opening your own store?
How to Become a CBD Oil Distributor in 7 Steps
While selling CBD oils is perfectly legal, and you won't need any special business licenses, you will need a standard business reseller's license, and that's mainly for selling CBD products online. Check with your state, city or town to see what, if any, other licenses you'll need to open your CBD oil retail business.
2. Choose Your Business Name
One way to check and see if the products you're buying are high quality is to ensure the CBD matches up to its lab specifications.