How To Enter CBD Industry: Top 10+ CBD Business Ideas
In 2020, the world saw a boom in demand for cannabidiol (or CBD) - a chemical derived from the hemp plant. Though being a component of marijuana, CBD doesn’t get you high. People believe that CBD has several health benefits instead. Its effects include relieving anxiety, easing pain, reducing inflammation and some other skin issues, etc. In 2018, the very first drop of cannabidiol led to its debut!
In the U.S, the legal status of CBD has been in flux. Until now, all 50 states legalized CBD with different degrees of restriction in their laws, though the federal government still regards it as the same class as marijuana. Despite this, the number of people seeking it is growing.
According to Statista, total cannabidiol product sales in America reached 1,198 million USD in 2020. The figure can even soar to 1.8 billion USD by 2020. It proves that the CBD industry is a fertile land for enterprises.
Were you to step into this cannabis industry, the 10+ business ideas listed below would help.
- CBD-infused Apparel
- CBD Cosmetics
- CBD Spa
- CBD-infused Beverages
- CBD-infused Food & Snack
- CBD-infused Pet Food
- CBD-infused Topicals For Pet
- CBD Container & Packaging Supplier
- CBD Pills
- CBD-infused Sleep Products
- CBD Subscription Box
- CBD Manufacturer
01. CBD-infused apparel
Yes, it is possible to infuse CBD oil into the fabric, though the process isn’t easy. A technology called microencapsulation allows tiny microscopic capsules to absorb the CBD before getting layered into the cloth. When you wear the clothing, friction and your body heat will break the capsules to release the oil. That’s how CBD clothing works!
Without a doubt, there is a myriad of ideas when it comes to fashion. You might want to look at the below suggestions:
- Sleepwear: Human body is most relaxed when sleeping. However, there is a growing number of people suffering from bouts of insomnia. The good news is, CBD can interact with serotonin receptors in the brain to help people to calm and relax. So, some CBD pajamas are just perfect for those who struggle to fall asleep.
- Sportswear: Starting up with CBD-infused sportswear doesn’t sound bad! One typical example is Acabada, which launched the first CBD-infused activewear in the market. Each collection contains a limited number of items available until they’re all sold out.
Here is what Acabada’s CBD apparel might bring to its customers.
- Streetwear: Without a doubt, you can’t turn a blind eye to this product line. Fashionable items that give a sense of relief are ready to turn some heads!
02. CBD cosmetics
According to Statista, the revenue of the beauty and personal care market in the U.S hit 89.5 billion USD in 2018, making America the most competitive player in the field globally that year. Experts believe that cannabidiol in the cannabis plant can treat skin concerns like dryness, inflammation, or soreness. As the demand for natural products is soaring, CBD cosmetics has emerged as a new trend. You now can find various kinds of CBD beauty products, ranging from creams to lip balms, face masks, lotions, etc.
In such a field, target customers are those who are aware of the benefits of CBD, especially when it comes to skin & beauty products. Once you decide to give it a try, prepare to manage things like product development, packaging, marketing, and identifying retailers. Initial costs include (but are not limited to) insurance, payroll, brand materials, and your money site. Generally, you should expect to spend approximately from $75,000 to over $200,000.
Learn more: How To Sell CBD on Shopify
Recently opened in 2019, La La Leaf has nailed its niche with CBD-infused products from 100% all-natural ingredients. Their key product lines are hand creams and vegan lip balms.
03. CBD spa
Cannabidiol, which is a non-psychoactive compound in marijuana, is known to offer several potential health effects. Research has shown CBD can be used to treat acne and other skin conditions. For that reason, spas across the U.S are increasingly utilizing cannabidiol in their treatments.
So, how can you incorporate such a compound into your service? There are several stages that you can include CBD:
- Cleanse: In the first place, a CBD-infused cleanser provides skin with the best condition to absorb the following products.
- Exfoliator: A CBD-infused exfoliator helps remove skin cells and ensures skin to be in a “relaxed mode.”
- Massage: This is the stage where you can take advantage of numerous CBD products. For instance, CBD oils need adding to boost relaxation and enhance customers’ experience.
- Serum: In facial treatment, using serums is indispensable to provide beneficial ingredients for the skin.
- Moisturize: A CBD-infused moisturizer is perfect for completing your cannabidiol treatment.
An example of this business model is Spa Anjali at the Westin Riverfront, Avon, Colorado. In the Green CBD Spa Treatment service, massage therapists will apply the compound to areas of concern in customers’ skin. Each CBD massage lasts from 50 to 70 mins at the price of $190 to $250.
04. CBD-infused beverages
There is evidence that CBD-infused drinks will make a splash in the upcoming years. According to a report published by Prohibition Partners, CBD drinks can emerge as a threat to the alcoholic beverage industry, which has dominated for a long time. From what the report shows, the new market stands possibilities to reach four billion USD by 2024.
If you wish to jump into the CBD market, here are some recommended drinks for cannabidiol infusing:
- Coffee: CBD-infused coffee may sound to be confused and complicated, but it’s simpler than you think. You can add cannabidiol to a cold brew, an expresso, or blend it with milk to create a cup of CBD latte.
- Bottled water: Infusing cannabidiol into the water can be a difficult task because THC and CBD are not able to mix well with H2O. However, a process called “nanotechnology” may help you solve this. A brand named CBD Living has applied that technology to produce CBD water since 2014.
- Beer: To make CBD-infused beers, you need to have beers brewed and infused with CBD or THC. They’re different from cannabis beer, which is made using roots and stocks from the marijuana plant.
- Tea: It may sound to be confused, but CBD and tea make a great pair. Combining active ingredients in marijuana like cannabidiol with therapeutic herbs does create a healthy remedy for your body and mind. A CBD company that sells such a product is Buddha Teas.
05. CBD-infused food and snack
Another CBD business idea is CBD-infused food. People have long consumed CBD and are coming up with more creative forms of CBD products. Food and snacks are among them. In this industry, business owners will find endless types of edibles. Let’s get started with the most common ones.
- Cookies: Like any cookies you often buy at stores, CBD cookies contain baking ingredients, with the addition of cannabidiol. Most cookie recipes need some vanilla extract, which is one way of adding CBD oil. When making them at home, you can adjust the amount of cannabidiol used, depending on your taste and demand.
- Gummies: CBD-infused gummies are candies that come in various flavors, shapes, and colors. In the U.S, CBD gummies are legal to produce and ship from state to state.
- Protein bars: CBD protein bars stand chances to become the next big fitness trend. Selling homemade CBD bars can be an option for you since making them isn’t challenging.
- Dried fruit: People who don’t have a sweet tooth will find CBD dried fruit a healthy alternative to candies. A CBD brand called Verma Farm is selling such dried fruit with several flavors available.
06. CBD-infused pet food
The CBD market is booming with high potential within one of its categories - pet products. A report published by Nielsen, which is a data provider for the cannabis industry, shows that hemp-based CBD pet products will account for 3 to 5% of all hemp CBD sales in the U.S by 2025. Another important finding is that 74% of CBD shoppers have pets.
If you want to kick start a CBD business serving pet treats, read below for some tips!
- Learn to find a supplier: You should start by identifying wholesale CBD oil suppliers online. Avoid establishing many vendor relationships when you build your business from scratch. Holding stocks at your shop at once has a lot of risks. Besides, you can choose to either sell directly or do dropshipping. The latter one means you don’t need to store stocks since the supplier will ship products directly to buyers.
- Create a website: This helps customers find you and allows your CBD products to be displayed and promoted. An example is http://canna-pet.com/ - a brand that sells numerous CBD edibles for dogs, cats, and horses. The website is well-organized and contains all necessary information about the brand and products.
- Market your business: No matter how amazing it is, you can’t make money without promoting your business. Utilizing social media is the key. Appropriate online networks are Facebook, Instagram, and YouTube.
07. CBD topicals for pets
Apart from food, topical medications play a significant role in our four-legged friends’ daily life. CBD topicals can benefit cute animals in several ways, such as calming a dog from excessive barking or noise phobia, alleviating pets’ conditions like aches and skin issues. For this reason, you can launch a business providing CBD products that target people who have furry friends.
When you first start a CBD business, it helps to learn from big brands in the industry. Some examples are:
- King Kanine: This CBD company serves organic pet products that leave no environmental footprint. The brand assures to deliver balms and sprays formulated with the best natural ingredients to promote pet wellness.
KING KALM™ is this brand’s rich CBD product line, which leads the pet alternative treatment market. King Kalm includes sprays, balms, oils, and edibles.
- Treatibles: This is one of the most credible CBD companies in the pet industry. They focus on selling treatibles for cats, dogs, and horses that experience mental problems, digestive issues, skin irritations, etc.
Topicals for four-legged friends range from soft & hard chews to oil droppers, cream, or capsules.
08. Provide CBD bottles and containers
Selling CBD packaging and containers can be a smart way to enter the CBD industry. A myriad of new CBD products has pushed packing suppliers to work harder to meet the needs of CBD brands, which put no limits on development.
While some brands opt for stocks, others prefer premium packaging. It creates opportunities for businesses like the CBD Packaging Store, which offers various ideas for packing CBD products. The brand promises to deliver high-quality printed boxes, which are in vivid colors and designs.
The brand provides different types of containers for various CBD sectors.
09. CBD pills and capsules
Do research: Since CBD supplements are edible products, they do have an impact on the health of consumers. In the first place, you had better spend time going over the federal laws and your current state regulations that apply to your business. However, prepare to face uncertainties that the FDA doesn’t claim the safety of CBD products sold as pills.
Register: Of course! You can’t sell anything legally without getting your business certified.
Choose a credible supplier: To launch a successful CBD business, make sure you identify a reliable CBD supplier. Also, you need to ensure that the supplements you got meet the legal standards in your location and sales areas. A trustworthy supplier will impose strict testing for delivering high-quality products.
Create your online store: A not-so-good news is CBD products are not allowed on popular e-commerce platforms like Amazon and eBay. So, the best option is to build your own money site. In case you have no idea about how your website should look, use some examples below.
CBD American Shaman delivers a wide range of CBD products. Pills and capsules are among them. Visit cbdamericanshaman.com for more details.
Another worth-looking brand is Charlotte’s Web. Visit https://www.charlottesweb.com/ for further details.
10. CBD-infused sleep products
That sounds great as its name! If the viability of CBD ingested products bothers you, this category might catch your interest. Main CBD sleep products include blankets, pillows, and bedsheets. Like the sleepwear we mentioned above, CBD microcapsules will undergo an infusing process to get into pillows or blankets. Friction and body heat will enable those tiny capsules to burst, slowly letting out cannabidiol.
There is evidence that CBD-infused sleep products work. Some buyers reviewed that a CBD pillow helped them with their sleeplessness and anxiety and gave them more energy for the next day. However, there is a con that the effects only last a maximum of six months.
Although some customers said they felt little effects, others noted they experienced an improvement in sleep quality.
One of the famous brands that sell CBD sleep items is Malouf. There, customers can find high-quality CBD pillows that come in a range of sizes, shapes, and colors. The price is nearly 180 USD for each, which is relatively expensive.
11. CBD subscription box
From personal care & beauty products to clothing, subscription services have stolen the heart of many people. A report published by McKinsey in 2018 shows that this sector grew 30% year-on-year.
With the popularity of CBD products, starting a CBD subscription box service can be a good idea. In case you don’t know, a subscription service is paying a fixed monthly fee to receive a box of randomly picked items delivered to your door. What makes the idea so emotionally engaging is that customers can’t decide what will be in their box.
Hence, if you don’t have a particular interest in any CBD sector, a business idea as such might suit you. Some examples for reference are:
- AllayBox: This brand sells boxes filled with CBD wellness products. Each box has about 4 to 6 items like topicals, treats, gummies, etc. The website of Allaybox is very well-designed and friendly to visitors.
- Populum: This subscription service allows shoppers to create their box by picking as many products as they’d like. The starting subscription fee will be 32 USD per month.
Populum offers quite a lot of benefits for subscribers. Such a strategy might make the company more competitive.
12. Become a CBD manufacturer
Among many CBD business ideas, becoming a manufacturer can be one of the most difficult ones. While some people choose to create their hemp-derived products themselves, others prefer working with manufacturers instead.
If you make up your mind to be a CBD manufacturer, prepare to handle complex processes, such as providing third-party testing, creating a private label, or ensuring products meet FDA regulations. After those stages are well-done, retailers will be in charge of the remaining. For those who want to pursue the sector of CBD oil manufacturing, you need to purchase the required technology to extract CBD oil from hemp plants. Being equipped with relevant technological knowledge is crucial also.
Besides, to secure a place in such a competitive market, knowing your customers is indispensable. You also need to identify a segment that has not been sufficient-served in your intended market and nail your niche in it!
Another thing to decide is your plan to sell CBD products. Working with retailers is a highly-favored way to boost sales and grow a wholesale distribution business. We highly recommend you to reach out to stores or affiliates with interest in CBD products.
We’ve just introduced 12 business ideas for one of the fastest-growing industries. Once you pick an option, there will be much more things to do before launching new products. Keep in mind that a successful CBD enterprise requires efforts, dedication, and time.
CBD Subscription Marketing is blooming and the Subscription market itself has totaled at over $18 billion in 2020.
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