Like any emerging industry, the hemp market continues to endure its fair share of turmoil. Every entrepreneur knows, however, that chaos can be synonymous with opportunity, and the non-intoxicating cannabinoid has finally stabilized to the extent that market entry is no longer considerably risky. In this list, we’ll cover 10 of the most compelling reasons that there’s never been a better time to start a hemp brand, and we’ll provide you with the insight you need to ensure that your new cannabinoid venture will be a success.
1. Market growth projections are remarkably promising
In 2020, the renowned cannabis analytics agency Brightfield Group suggests that the domestic non-intoxicating cannabis industry will exceed $4.7 billion in market size. This firm expects the hemp market to grow at an accelerating pace over the next five years, and by 2025, non-intoxicating cannabinoids could be worth as much as $16.8 billion in the United States alone.
Very few industries exhibit this unbridled degree of sheer growth potential. These projections remind us that the hemp industry remains in its emerging phases even though significant market consolidation and stabilization have occurred over the last few months. If the U.S. Food and Drug Administration (FDA) provides meaningful guidance on CBD sooner than expected, the hemp industry may grow at an even more rapid pace.
2. COVID-19 has boosted online CBD sales
The lockdowns that have ensued in the wake of the COVID-19 pandemic have majorly disrupted practically every segment of the economy. While it’s true that many struggling CBD brands didn’t make it and plenty of brick-and-mortar CBD stores were forced to close shop, savvy entrepreneurs have made a pivot that saved their brands while simultaneously providing expanding opportunities throughout the industry.
According to Brightfield, 47% of CBD consumers now purchase their hemp products online, and this trend is only expected to accelerate. Brands that make proper use of digital marketing, therefore, are equipped to succeed as a greater number of eyes descend on the online hemp market than ever before.
3. Innovation is delivering impressive rewards
Effective entrepreneurs always make choices based on popular trends, and the CBD industry is rewarding this type of behavior like never before. All of the most popular CBD brands have developed immune-focused products as COVID-19 has become a major concern, and these new products have spurred an unprecedented era of innovation.
Combining CBD with immune-focused ingredients like vitamin D3 and elderberry extract has proven to be an effective model, and this diversification has also effectively-prepared CBD consumers to embrace hemp products that contain additional ingredients. Even after concerns over COVID-19 die down and the world returns to normal, consumers will remain primed to choose products that combine CBD with other useful substances.
This trend makes diversification easier for new brands. While forcing a simple full-spectrum CBD tincture to stand out in today’s hemp market is practically impossible, combining CBD or another non-intoxicating cannabinoid with trending botanical ingredients provides the diversification that’s necessary to ensure that your brand will be noticed.
4. Minor cannabinoids are opening up new opportunities
Gone are the days when CBD was the only non-intoxicating cannabinoid to contend with. Plenty of major brands are adding cannabigerol (CBG), cannabinol (CBN), or cannabichromene (CBC) to their CBD products, and some brands are even going so far as to offer products that only contain these “minor” cannabinoids.
As the hemp market stabilizes and consumers become more accustomed to CBD, new brands are benefiting from the opportunities to diversify that are being provided by minor cannabinoids. Now that CBD has essentially become normalized, consumers are on the lookout for new, innovative cannabinoids, and they’re especially keen to find products that boost or enhance the latent benefits of CBD.
5. Market consolidation is providing useful lessons
Despite the fact that the FDA has yet to release concrete guidance to the CBD industry, hemp has become increasingly normalized, leading a few large companies to push smaller competitors out of the running. While this might seem like bad news to new brands on the outset, the recent consolidation of the hemp market can easily be turned into a source of unexpected opportunities.
For instance, there are now finally models of what works in the hemp industry. Following in the footsteps of currently dominant CBD brands eliminates guesswork and provides proven approaches to success. What do these legendary brands have in common? A firm focus on digital marketing and product diversification.
6. Consumer sentiment toward CBD continually improves
Long considered to be a fringe product burdened by its association with marijuana, hemp has truly come into its own over the last few years. Consumers finally recognize that CBD is essentially no different from any other natural remedy on the market, and they aren’t concerned that they’ll get high from using products with less than 0.3% THC. Hemp entrepreneurs can easily capitalize on this unprecedented warming toward CBD to achieve concrete success.
7. Industry evolution makes the startup phase smoother
Previously, entrepreneurs were forced to shoot in the dark as they developed business plans and implemented methods for approaching the hemp market. Now that the CBD industry has significantly stabilized, however, industry veterans have emerged who can lend their expertise to new entrants to the hemp arena. At GVB Biopharma, we take the guesswork out of launching a cannabinoid brand. From formulating custom products that are proven to capture consumer interest to providing assistance with product placement and brand management, we are here to help you be successful!
8. White label and bulk cannabinoid products have never been so diverse
Did you know that it’s now possible to produce a water-soluble liquid that contains CBG-rich broad-spectrum hemp extract with zero THC? How about a crystal-resistant CBD distillate that contains up to 25% minor cannabinoids?
The product formulation capabilities of leading bulk cannabinoid suppliers have evolved dramatically over the last few years, and finished white label products are likewise more advanced and diverse than ever before. It’s now a simple matter to add practically any botanical ingredient to hemp topicals, tinctures, or edibles, and CBD vape products can now benefit from a wide range of added cannabis terpenes.
9. Global growth shows no signs of stopping
The United States isn’t the only place that the CBD industry is booming. South America, Europe, and even Africa are rapidly embracing the international hemp renaissance, and shrewd entrepreneurs can now position themselves to succeed in any of these global cannabinoid markets. CBD and other non-intoxicating cannabinoids are quickly becoming fixtures throughout the entire world, boosting the overall growth of the hemp industry and ensuring that consumer sentiment toward cannabinoids will continue to brighten.