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.
Industry analyst BDS Analytics predicts the U.S. CBD market will reach $20 billion in sales by 2024. This would be a major surge from $1.9 billion in 2018 (a 49% annual growth rate).
Still relatively new to the mainstream, cannabidiol, more commonly known as CBD, is becoming a household name. The purported therapeutic and health benefits of CBD, one of many compounds found in cannabis and hemp plants, has created a buzz. CBD oil has entered the marketplace in the form of tinctures, infused edibles, topicals and more. The growth of CBD oil products has been so immense, in fact, that industry analyst BDS Analytics predicts the U.S. CBD market will reach $20 billion in sales by 2024.
How to gain a competitive advantage
CBD is one of more than 100 cannabinoids, which are compounds found throughout the cannabis and hemp plants. The most famous cannabinoid is undoubtedly tetrahydrocannabinol (THC), which is responsible for the intoxication associated with the consumption of cannabis. CBD, however, does not produce an intoxicating effect; instead, it offers potential therapeutic and health benefits, though research into its potential medical applications is ongoing.
The CBD and cannabis industry faces unique challenges that other industries don't. Most of these challenges relate to the regulatory environment and, as federal agencies like the FDA detail specific rules and guidelines, things should stabilize. For now, though, if you want to start a CBD business, you should be aware of these major considerations:
The growth opportunity in the CBD industry is unparalleled. The cannabis industry is one of the fastest growing in the nation, and CBD is one of the quickest growing sectors of that industry. Especially following the passage of the 2018 Farm Bill, hemp CBD products are proliferating at a fast rate. If you want to start a CBD business, you're not alone.
"We want to be more transparent by putting QR codes on all our bottles so anyone in the store can use their phone to get lab results right then and there," Slovik said.
Still, if you’re serious about doing what’s best for your customer, I believe products should meet certain standards of quality. Here are a few quality control processes that represent the best practices of how a CBD company can make its products.
All of our CBD and other hemp-derived ingredients come from American-farmed hemp plants with certificates of analysis. These certificates show that the hemp extracts do not contain unsafe pesticides or contaminants like heavy metals. Hemp plants have a sponge-like quality. They’ll draw up whatever elements are in the soil, including those nobody would want to consume. That’s why I insist on this sourcing and certificates.
Create proprietary formulations
As an entrepreneur, your product is everything. Because of my background as a pharmacist, I knew we owed it to our customers to meet the high standards needed to get our facility for making CBD topicals certified as an OTC maker. That means the FDA has certified that our equipment and procedures meet the strict standards to make over-the-counter quality products. The truth is, this is rare in the CBD industry. It’s time-consuming and a challenge, but one we accepted gladly.
Today, launching a CBD company is relatively easy. Dozens of manufacturers are ready to provide finished goods to any entrepreneur with a logo and a label. Somebody with any background can get into the CBD business, and there are now more than two thousand CBD brands means that many novices have jumped in.
CBD has had an explosion in popularity. That means countless brands that want a slice of the pie slap their logo on a boilerplate oil or topical cream from an industrial manufacturer. The difference between many of them is only label-deep. As a pharmacist, I had a vision of CBD oil that set a new bar in taste, effect, and mouthfeel. I refined the recipe over and over again until I got there. I didn’t want to create a CBD oil that was curdling, bitter, and like, “taking your medicine.” I believe our proprietary CBD oil is a premium wellness experience, but even brands who aren’t manufacturing their oils should keep pressuring their manufacturer to improve the customer experience.