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5 Reasons You Should Invest In CBD Business

5 Reasons You Should Invest In CBD Business

According to Grand View Research, the global CBD market size was valued at an estimated USD 2.8 billion in 2020. The same reports project that the industry could expand at a compounded annual growth rate (CAGR) of 21.2% between 2021 and 2028. Perhaps one should get familiar with what CBD is and the reasons behind its sustained growth in popularity.

CBD is one of the 100+ medically useful chemicals occurring naturally in the cannabis plant. CBD is noted for its powerful analgesic properties. The compound has shown remarkable promise in treating various chronic pain conditions, such as arthritis, endometriosis, multiple sclerosis, and fibromyalgia.

CBD also contains anxiolytic, antiemetic, anti-inflammatory, antispasmodic, and antioxidant properties. So, it’s clear to see why the compound is taking the health and wellness industry by storm. But, cannabidiol’s numerous healing benefits are not the only reason to consider investing in the lucrative CBD market. This post highlights other top five reasons why the CBD market is attracting investors from far and wide.

1.   Constant Innovation

The CBD industry is one of the most innovative industries in the alternative medicine sector. The market has witnessed a surge in new and innovative products over the past couple of years. Initially, most CBD products were available predominantly as oral tinctures or dried, smokable cannabis buds. But not anymore.

When you check into the online retail outlets of renowned CBD retailers like https://cbdfx.com/collections/cbd-hemp-capsules/, you’ll encounter a variety of other cannabidiol-based products. Examples include inhalable products like CBD-infused e-juices, edibles like CBD-infused capsules from sunday scaries, and skincare products like CBD-enriched bath bombs. As an aspiring CBD trader, it’s reassuring to note that there are numerous CBD products you can deal with.

2.   Various Ways to Enter the Industry

It’s intuitive for aspiring CBD traders to think along the lines of establishing CBD retail outlets. But did you know that you can enter the lucrative CBD industry in a couple of other ways?

For instance, you might choose to become a CBD producer. A CBD producer is pretty much a cannabis cultivator. If you decide to become a cannabis grower, insist on hemp as opposed to marijuana variants. Hemp produces significant CBD yields compared to marijuana cultivars which tend to give higher yields of the psychoactive compound tetrahydrocannabinol (THC).

Besides becoming a cannabidiol producer, you could also set up a CBD processing plant where you manufacture various CBD products. However, be warned that this option is a bit capital-intensive and is recommended for ambitious investors. But if undertaken diligently, a CBD manufacturing plant is one of the most profitable CBD-based businesses you can ever run.

Other popular ways to enter the CBD industry include:

  • Becoming a distributor of CBD products
  • Offering ancillary services, such as supplying packaging and labeling materials
  • Establishing a consultancy business where you offer informative tips on various aspects of CBD, such as the health benefits of CBD, delivery methods, potential side effects, and the compound’s legality
  • Investing in CBD stocks

3.   There’s A General Tendency Towards Legalization

CBD is fundamentally a cannabis extract. Therefore, its legality largely depends on that of cannabis as a whole. However, there’s a general tendency towards CBD legalization around the world. That’s especially in contrast to other popular marijuana extracts like THC.

In the United States, you can legally access CBD in all fifty states provided that the compound contains at most 0.3% THC. The same scenario appears to be replicated in most European countries. The main reason behind the growing legalization of CBD-based products is the many studies citing cannabidiol for its immense therapeutic properties.

However, it’s worth noting that CBD remains illegal in many countries in Asia, South America, and Africa. So, it’s imperative to establish your local cannabidiol laws before setting up a CBD venture.

4.   Competition Is Still Low

It’s almost impossible to discuss digital communication solutions without mentioning Google and Microsoft. Similarly, you just cannot discuss the soft drinks market without the names Coca-Cola and Pepsi popping up.

Nearly every industry you can think of has already been tapped into. If you choose to invest in such industries, your only recourse would be to come up with robust marketing plans in a bid to compete with already established brands.

Fortunately, there are still fewer established brands in the CBD industry. That’s because the CBD market is still relatively new. The fact that cannabis legality is still a complicated affair makes many investors reluctant to take their chances in the CBD industry. That subsequently makes investing in the sector even more attractive due to low competition.

5.   Celebrity Endorsements

Influencer marketing plays a crucial role in raising brand awareness, especially if the influencer happens to be a renowned celebrity. Cannabidiol has had its fair share of celebrity endorsements. Irish and American actress Olivia Wilde is one of the top celebrities that use and endorse CBD. During an interview with The New York Times, Wilde admitted to using CBD for pain relief.

American businesswoman and television personality Martha Stewart is another outspoken advocate of CBD. In 2019, Stewart inked a partnership deal with Canopy Growth to produce and promote organic hemp-based CBD products. Other celebrities that endorse CBD include Tom Hanks, Jennifer Aniston, Seth Rogen, to mention but a few.


Evidently, there are numerous reasons to consider investing in the CBD industry. As a parting shot, remember to familiarize yourself with your local CBD laws before setting up a CBD business.



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