Since the passage of the 2018 Farm Bill, the CBD industry has exploded within the United States. CBD used to be a niche interest, but it’s become one of the most popular wellness products on the market. The industry itself has also continued to expand, with new CBD-infused products being developed on an ongoing basis. As we learn more about CBD and its variety of uses, it’s likely that the interest in it will only continue to grow. Entrepreneurs who are interested in investing are definitely getting in at the right time. If you’re considering a foray into the CBD industry, read on to learn more about how profitable it can be.
What is CBD?
If you aren’t familiar, CBD is short for cannabidiol, which is one of the compounds found in cannabis plants. It differs from marijuana primarily because it doesn’t contain THC, which is the chemical responsible for getting you high. Though CBD’s effects are more subtle, consumers are still enamored with almost anything infused with it. You can find CBD in everything from beauty products to edibles like gummies and chocolate. There are even CBD-infused dog treats available.
If it’s legal in your area, you can grow a cannabis plant on your own, even if you don’t have an outdoor garden or enough space to build a grow room. A DIY grow tent makes cultivating indoor plants accessible, even if you live in a small apartment. You can buy a pre-made grow tent, but it isn’t difficult to build your own setup. Aspiring growers will need some supplies that are all relatively easy to obtain. Your shopping list will include poly plastic, PVC, glue, and a set of standard tools if you don’t already have some at home.
Beyond building the grow tent itself, you’ll also need to deal with light and ventilation. Your grow light should hang on the cross beams of the tent. Light hangers are a good investment since they’ll allow for height adjustment. The best way to handle ventilation is to use carbon filters after making inflow and outflow air holes.
Is starting a CBD business profitable?
Since the 2018 Farm Bill legalized the sale of hemp byproducts like CBD in the U.S., the industry has grown exponentially. Experts project the CBD industry will be worth over $20 billion by 2024. If research uncovers new potential uses for CBD, the market is likely to experience another period of exponential growth. Studies are still being performed, but many experts are optimistic about potential medical applications for the versatile compound.
Make sure you’re prepared for the unique challenges that cannabis business owners face. It can also be more difficult to obtain financing in the form of loans from banks, which means you may need to raise capital on your own. Insurance and brick-and-mortar rental can also be difficult depending on where you live. However, these issues are becoming more manageable now that CBD products are legal and marijuana legalization is becoming increasingly widespread.
It’s also important to remind customers that if they’ve never used cannabis before, they should check with their doctor before trying CBD. A doctor can provide advice on how it will interact with any health conditions they have or medications they take.
Though it’s still a relatively new market, there is a lot of promise in the CBD industry for entrepreneurs who are interested in it. While there are unique risks and challenges, there are also incredible rewards. You can also have the satisfaction of knowing that you work in a field like wellness, which aims to improve the quality of people’s day-to-day lives. There are few businesses that offer that level of profitability and personal satisfaction. The CBD industry is projected to continue its steady growth for the foreseeable future, which makes now the perfect time to get involved.