Top 6 Ways to Enter Into CBD Industry in 2021
Cannabidiol (CBD) has become a household name in the alternative medicine sector. The compound is also gradually finding its way into the global mainstream pharmaceutical industry. CBD is one of the two most popular cannabinoids (pharmacologically beneficial compounds that occur naturally in the cannabis plant). The other one being tetrahydrocannabinol (THC).
Besides, cannabidiol is widely touted for its analgesic, anxiolytic, anti-inflammatory, antispasmodic, and antiemetic properties. The compound is also famous for its non-psychoactive properties. Cannabidiol’s immense health benefits are the reason behind the sustained growth in the cannabis industry. According to industry analyst BDS Analytics, the United States CBD market will reach $20 billion in sales by 2024.
So, if you’ve always considered venturing into the lucrative cannabis industry, now might be the best time to take the plunge. And as you ponder over that decision, it will interest you to know that there are numerous ways you can enter the CBD industry. This article highlights the top six ways to invest in the CBD industry in 2021.
1. Become a Cannabis Grower
Cannabidiol comes from the cannabis plant. So, it would be fair to say that one way to enter the CBD industry is as a cannabis grower. Now, one needs to consider before becoming a marijuana cultivator. First, you’ll need to ensure that you can legally grow weed in your jurisdiction. That involves establishing your local cannabis laws, paying particular attention to legislation touching on marijuana cultivation.
It’s also important to note that cannabis produces multiple species. Examples include Cannabis sativa, Cannabis indica, and Cannabis ruderalis. Cannabis indica species mainly produce hemp, and this is where much of CBD comes from. Other considerations before becoming a cannabis farmer include:
- Finding a climatically suitable location for your cannabis plantations
- Investing in high-quality seeds
- Implementing all the professionally recommended cannabis growing tips
2. Sell CBD Products
When most people think of cannabidiol products, it’s usually CBD oil and CBD tinctures that come to mind. However, CBD products now come in a variety of other forms. Examples include CBD-infused edibles, such as gummies, chocolates, candies, and herbal teas. You can purchase Sunday Scaries CBD gummies or CBD gummies from other reputable brands and still allow your customers to enjoy cannabidiol’s remarkable health benefits.
There’s also the option of trading in CBD-formulated e-juices. These are essential vape oils containing cannabidiol as a replacement for the addictive chemical nicotine. Other CBD-based products you can sell include smokable dried hemp extracts and CBD-enriched topicals like salves, ointments, and balms.
3. Start a CBD Processing Plant
Before CBD products are available in the markets as finished goods, they must first undergo some processing. Of course, dried smokable products are an exception to this rule. All the same, establishing a CBD processing plant is an ingenious way of bridging the gap between hemp growers and CBD retailers.
Note that this investment option is a bit capital-intensive. There may also be a few more legal requirements before setting up a manufacturing firm. However, it’s one of the most rewarding ways to enter the CBD industry in 2021.
4. Start a CBD Distribution Company
Distributors play an essential role in the supply chain. They bridge the gap between producers and wholesalers, as well as between wholesalers and retailers. One notable advantage of becoming a CBD distributor is that it’s a relatively low-risk investment option.
For starters, you don’t necessarily require physical premises to run a successful distribution company. In most cases, a van and one or two staffers are all you’ll need. Also, there are fewer legal roadblocks to navigate. That’s mainly because you won’t always handle cannabidiol products directly. You may choose to supply entirely non-CBD products, such as packaging and distribution materials.
5. Trade-In CBD Stocks
In case you’re looking for a simple approach to investing in the CBD industry, you might want to look in the direction of stock trading. This option may sound complicated, but it’s not. All you need to do is research the differences between THC and CBD. Then, purchase these stocks when the share prices are down and hoard until the prices rise. Finally, sell off your shares for a profit.
Even better, you can engage the services of a licensed stockbroker. Just ensure they have proven experience working in the CBD stock market.
6. Start a CBD Consultancy Firm
Cannabidiol may boast multiple health benefits. Unfortunately, CBD products remain illegal in numerous countries around the world. Also, the fact that cannabidiol is a cannabis extract means that CBD products are still treated with a degree of skepticism.
You can start a consultancy business aimed at shining a light on some of these issues. Besides cannabidiol’s legality, there are several other aspects of CBD that your consultancy services can address. Examples include CBD’s health benefits, delivery methods, dosing information, and potential risks.
CBD consultancy firm is another cannabidiol-related investment option that may not necessarily require physical offices. If you’re a bit tied up with cash, consider launching your consultancy business online and focus on informing your audience through blogging. If anything, findings suggest that many aspiring CBD users rely on the internet to learn more about the compound.
There are several ways to invest in the cannabidiol industry. Whichever investment option you choose, remember to familiarize yourself with your local CBD laws and ensure your business complies with all the laid-down regulations.
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