Has there ever been a more divisive product than CBD? The cannabis extract is loved by many and truly understood by a few, but the fact is that the cannabidiol sector is one of the most profitable industries right now. According to financial estimates from BDS Analytics, a company that produces market trend reports and analyses on cannabis, the CBD market will reach $20 billion in sales by 2024.
Entrepreneurs planning on entering or already in the CBD industry will have to exploit specific profitable trends to flourish in an industry that is teeming with suppliers.
Strains without THC, for instance, have proven to be quite profitable. Federal law only allows the cultivation of hemp with less than 0.3% THC (delta-9 tetrahydrocannabinol), and anything with more than the required level is classified as marijuana. People who don’t want to experience the psychotropic high induced by THC may be wary of using medical cannabis.
More than half of the American population lives in a state where cannabis is legal at some level, and tapping into this market is crucial. Cannabis growers have begun growing hemp with little or no THC to alleviate this. Like genetically modified foods, these new strains have been tinkered with in the labs to reduce THC levels, enhance the qualities and effects that consumers are paying for.
Various methods of consumption have made CBD even more accessible. Not everyone prefers smoking or eating CBD-laced products. Plus, limiting yourself to one or two means of consumption will also reduce profit margins. The cannabidiol market has the advantage of being innovative, and currently, there are a ton of ways for consumers to use CBD safely.
From vape pens, candies and brownies to water-soluble oils and lotions, there are a lot of ways an entrepreneur can diversity their cannabis product line. This sort of variety allows you to reach a wider audience.
Cashless Payments. Because of CBD’s association with its controversial cousin THC, hemp farmers and CBD processors have had a hard time accessing vital services like banking. Afraid of being associated with the illegal marijuana, banks avoided the hemp industry, creating an opportunity for payment processing.
Companies that offer cashless services can make a killing. Services such as mobile apps and blockchain have come out to fill the void left by banking institutions, enabling players in the cannabis industry to bank their revenue safely.
CBD For Pets. According to American Pet Products, Americans spent about $69.5 billion on their pets in 2017, and there is no strong reason why a significant proportion of that money cannot be spent on CBD products for the pets. People love their pets, and they are more than willing to spend on them. While there are still concerns about CBD use in animals, there have been no reports of any negative effects.
One would imagine that CBD companies like Sugarmade Inc. (OTCQB: SGMD) and The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (OTCQX: TGODF) have considered CBD products beyond human ingestion and the possibilities are nearly endless.
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