In the United States, Canada and most Western European countries, the cannabidiol industry is growing at impressive rates. While other sectors seem to be in a permanent uncertainty, the CBD trend lines seem to go higher each year. But why is this business growing so fast? There are three main reasons:
1) Changing Laws and Regulations
Especially in the United States and Canada, the laws regulating the production, distribution and usage of cannabidiol products are moving towards liberalization. While there are still differences within state laws regarding the consumption of marijuana, CBD products containing THC levels below 0.3% are legal across all 50 states in the US.
Having this legal certainty is encouraging for entrepreneurs and large businesses to invest in the industry. Consumers are also more willing to purchase cannabidiol products as it is not like years ago, where it could only be done in certain states and by taking advantage of legal grey spots.
2) Increased Public Awareness
Partially due to the trend towards deregulation, more customers across the entire world are understanding the benefits that regular consumption of cannabidiol can bring to their health. Before, even talking about CBD products could make for an awkward conversation, as there was an inevitable link between cannabidiol and marijuana.
Fortunately, more people are understanding the difference between CBD and cannabis. Companies and the media are both making an effort to differentiate between THC, CBD and other cannabinoids present in the hemp plant by pointing out the differences in each component’s chemical compositions and manufacturing processes.
3) New Supply Methods
When cannabidiol products just starting becoming popular, anyone wanting to take part of the market had to invest thousands of dollars to establish in-house manufacturing facilities, buy expensive machinery and hire teams of scientists and chemists to formulate the products. Nowadays, the appearance of Private Label CBD Manufacturers and Drop Ship CBD Suppliers is changing the entire industry, making the barriers of entry to the market lower than ever.
With these two supply chain methods, the owners of small cannabidiol brands can focus in other areas of the business, including having a clear niche and successful marketing campaigns. Wholesale manufacturers of CBD products have the most modern equipment and dedicated research teams which are able to produce high-quality extracts at competitive prices, allowing brands to have profit margins, trusted suppliers and satisfied customers.