Are you interested in creating your own private label CBD line of products? If so, there are many advantages! Here are some good tips and guidance to creating your own brand of CBD products.
THE CBD MARKET IS BOOMING
The CBD industry has been growing substantially over the last few years and continues to become more and more popular across the globe. In 2016 the CBD industry was valued at an estimated $688 million, and by the year 2022 it’s estimated to achieve $22 billion in annual sales. This is an incredible leap and definitely shows how popular CBD is becoming!
One reason for the recent growth of CBD is related to the passing of the 2018 Farm Bill, which made Industrial Registered Hemp federally legal in all 50 states. This opened the door to major retailers, like CVS, Walgreens, Rite Aid, The Vitamin Shoppe, and others to announce their intentions to begin offering hemp-derived CBD products to their customers.
CREATING AND BUILDING YOUR BRAND
You should know right up front; the CBD market is already very competitive and there are many good reasons why. A few being, it’s still a fairly new market which makes the timing very good, there is already a huge demand for CBD and there are big profits that can be earned! However, your profits and your success are going to be dependent on many factors. One of the biggest and most important factors being how you market your CBD products and your brand.
BENEFITS OF PRIVATE LABELING YOUR CBD PRODUCTS
By creating a private label CBD product line, you open up the door to numerous advantages and benefits you would not normally have when selling another companies brand. So, what are these advantages and benefits?
Here are just a few:
- You have the freedom to express your own company’s image, look and feel
- You build customer loyalty to your company and your brand
- You stand out from the crowd
- You expand your marketing opportunities with your unique brand and message
- You build equity in your company and brand
- You create an exclusive added value
- You make it more difficult for competitors to compare and price match you
- You control your processes and profits
- You reduce your product development costs
- You have more flexibility and can more easily adapt to changes in the market
DO YOUR RESEARCH, PLAN ACCORDINGLY
There are many options when starting your own CBD business, so you will want to research and determine how you want to allocate your resources. You will also want to decide which products are best for your demographics and target markets. You should find out what the most popular types of products are, and which ones are best for your customer base. Then later, once you have created a following for your brand, you can expand into a more diverse variety of products.
FINDING THE RIGHT MANUFACTURER OR SUPPLIER
Another important factor to creating a successful private label CBD product line, is determining which manufacturer’s products you are going to private label. You have options, so it’s extremely important you work with one that:
- Provides you with the highest quality products
- Is compliant and certified in Good Manufacturing Practices (cGMP)
- Has a proven track record of satisfied costumers
- Has low minimum order quantities (MOQ’s)
- Has the ability to meet your production needs as your business grows
- Has quick or reasonable turn-a-round times
- Offers a large variety of products that can be private labeled
- Is flexible
Ultimately, the right manufacture can make a huge difference in your private label CBD product line and brand!
UNDERSTANDING THE LAWS AND REGULATIONS OF CBD
In order to be compliant with current industry regulations, you should have some basic knowledge of the laws and regulations that surround the CBD industry. There are some strict guidelines that can keep you from achieving the success you desire if you do not follow them. The first and most important guideline is to ensure your products contain less than 0.3% THC. If your CBD products contains more THC than 0.3%, than your CBD products are considered to be illegal to sell. Another important thing to note are the laws in your state. Although CBD is legal at the federal level, there are different state laws that can impact how your CBD can be derived.
Choosing to create your own private label line of CBD products has many advantages and can be a very affordable way to build your CBD business. The best news is, there’s never been a better time to get started!