The CBD market accounted for $12.8 million in 2021 and is expected to skyrocket to $56.3 by 2028.
Although the small plant-derived chemical is still relatively new to the mainstream, cannabidiol (CBD) is quickly becoming a household name. Not only is it being recognized as a versatile ingredient for several different applications but as a product that’s ripe for business opportunities.
In this article, we’ll cover several different CBD business opportunities in different markets that could be a huge success in the near future.
What Is CBD?
Cannabidiol is a natural remedy found in the hemp plant. However, unlike the psychoactive THC (tetrahydrocannabinol), another chemical found in the plant, it does not cause the user to get high.
CBD provides the therapeutic health benefits of marijuana without creating any intoxicating effect. Because of its relative newness and introduction into the mainstream, there is still new research coming out about its potential medical applications.
CBD Business Opportunities
With the growing legalization of marijuana in the United States, several industries are starting to take shape around CBD. Let’s take a look at a few different options to start a CBD business.
Become a CBD Blogger
In today’s internet age, becoming a blogger can be a full-time job and a huge opportunity for upcoming fields like CBD. However, it’s important to note that there’s a big difference between making a blog for fun and making one into a business.
Starting a business blog has the purpose of getting potential customers onto your website and converting them into leads, and eventually customers. You do this by building trust with your readers and becoming an authority in the CBD industry. There are also CBD affiliate programs that you can sign up for that can give you additional streams of revenue.
One of the best advantages of starting a website or joining an affiliate program is that there are very few startup costs. All you need to do is redirect traffic to your partner’s website. No dealing with any products or manufacturers!
Nowadays, more and more people are doing their shopping online, which makes it the perfect time to take advantage of the increased internet traffic. US eCommerce sales are expected to cross $1 trillion for the first time in 2022!
To become a CBD blogger, you’ll need to do three important things:
- Become highly educated on CBD products and topics
- Write about them regularly
- Use marketing and SEO tactics to gain more traffic
By doing this, you can eventually become a trusted expert in the CBD space and make money through affiliate and advertising programs.
Become a CBD Retailer
Becoming a CBD retailer is one of the more popular ideas for those looking to start a CBD business.
Compared to other CBD companies, the retail model is relatively simple. It involves purchasing CBD products from a manufacturer or wholesaler, then selling them at marked-up prices to make a profit. You can choose to open a brick-and-mortar store or start an eCommerce store, but you’ll still need a place to keep your products in either case.
After you decide how you want to sell your products and the market that you want to target, you’ll need to find a supplier. You can choose to sell private label products. You can even white label CBD products as your own.
It’s important to find a partner that is reliable while having top-quality products at the same time. Some important factors to consider when looking for a partner include:
- Quality of products
- Lead time between placing an order and receiving products
- Payment terms and conditions
- Communication with producer
Once you have your products and supplier in place, you’ll need to start marketing your business to draw in your customers.
Dropshipping is a great CBD business opportunity if you’re looking for another option that has low startup costs.
Dropshipping involves arranging a drop-ship agreement with a company that produces CBD products. You then build a website to market and sell the products. Once you receive orders, you simply forward the orders to the supplier. The supplier finally fulfills the order and ships the products straight to the customers.
As the drop shipper, you don’t even see the product! This eliminates the need for storage, complex order processes, and tracking shipping costs.
However, it’s important to know the law status of your country. It is currently legal in Europe and the United States, but not in Australia or Canada.
Start a CBD Podcast
Another CBD business startup idea is to create a podcast. If you have strong opinions or are always on top of CBD news, using online audio to get your message out is a great way to build authority and attract leads.
You can build credibility as a CBD leader and build influence over sellers and even bigger companies. You can promote products and services, build sponsorship programs, and start crowdfunding opportunities.
Building a successful podcast is a great platform that can lead to several other opportunities as well, like virtual summits, affiliate marketing, and even writing your own books.
Starting a podcast also has relatively low CBD business startup costs. All you need to do is invest in a quality microphone and a podcast network, and you can get started podcasting.
Start a CBD Subscription Box
A creative way to get CBD products to a specific market is by creating a subscription box.
A great advantage of subscription boxes is you choose exactly what goes into the boxes and how much they’re sold for. Because of this, you can forecast your monthly revenue based on how many subscribers you pull in.
This gives you a predictable income, which makes it much easier to manage customers and keep loyal customers for long periods of time. The bigger the subscriber base you create, the more attractive you’ll also become to investors.
Start a CBD Courier Business
If you’re someone who likes to be out on the open road, you could consider starting a courier business. This involves delivering CBD products to different places.
The benefits of starting a courier business include:
- Flexible hours
- Lots of social interaction
- Opportunities to see many different things
- First-hand experience with many different CBD products
To get started building a courier business, you’ll need to factor in the cost of a van, GPS, and licenses.
Produce CBD-Infused Food and Snacks
CBD edible products are quickly becoming part of the mainstream. When ingested, CBD has a slow and steady therapeutic effect on its user. To create CBD-infused products (commonly known as edibles), CBD needs to be extracted into oil form.
This oil can then be infused into a different carrier oil, then cooked right into a sweet or savory product. When creating CBD edible products, you’ll need to choose how many milligrams of CBD will go into your products. This will directly affect the cost of production.
Startup costs are a bit more costly for this particular brand of CBD business. Food licenses alone can cost anywhere from $700 to $4,000. You’ll also need to look into product liability insurance, which can cost another $1,000.
Other costs to keep in mind include packaging, labeling, running a website, as well as kitchen tools and equipment.
Open a CBD Spa
CBD has been proven to have therapeutic and pain-relieving properties that help people relax. As the general public becomes more and more aware of this, one new, enticing business opportunity is to open a CBD spa.
You could build a luxurious, comfortable setting that includes CBD massages. It can help with common symptoms like:
- Post-workout soreness
- Muscle discomfort
- Tiredness and exhaustion
- Joint inflammation
- Arthritis pain
- Back, shoulder, and neck pain
- Post-injury inflammation
Some CBD spas have even gotten endorsements from professional athletes.
However, it’s definitely on the higher end of startup costs. You should be looking at investing a minimum of $100,000 — and it could be much more. This capital would fund things like equipment, supplies, insurance, licenses, permits, advertising, hiring, and training.
Although it is no doubt a large investment in time and money, it is a unique and novel idea that could be incredibly profitable in the long run.
Get Started on Your CBD Journey Today!
The CBD industry is quickly becoming one of the fastest-growing industries in the world. There are tons of CBD business opportunities — you just need to know where to look and have the motivation to see it through.
One great (and easy) way to join the CBD world is to become a wholesaler. If you are looking for a lucrative wholesale opportunity for your business, don’t hesitate to sign up with us today!
And for White Labeling or Private Labeling with our private labeling division, Organics Fulfillment, sign up to start your own brand.