Currently, there is no hotter industry than marijuana. In 2019, global sales of legal marijuana reached around $16.9 billion. Countries that have legalized cannabis also saw an increase in customer demand and a gradual stream of new markets. However, marijuana is a vast industry, and some niches may grow at an even higher rate. One example is the cannabidiol products industry (CBD). CBD is the non-psychoactive cannabinoid that is now known for its perceived medical benefits. Studies suggest that global CBD sales are expected to rise to $22 billion by 2022. This marks a compound annual growth rate of 147%. As such, this is the perfect time to start thinking of investing in CBD. Those who wish to reap the potential benefits of CBD will probably run into not only CBD oil, but also CBD creams and other topicals. CBD cream is a topical cream that contains CBD, and one can use it to reduce pain, inflammation, and management of skin disorders. Here is why you should invest in CBD cream.
- Demand. Research suggests that CBD products are beneficial for glaucoma, pain/inflammatory management, anxiety, and other conditions. Since CBD products will not get you high, consumers are more likely to try this new trend. This is an excellent thing for the CBD industry because they bear a higher price point compared to traditional dried marijuana flowers. With these benefits, many people will want to look for the best CBD cream for pain. Over the past year, the market has exploded, and you can now find several options. Most people prefer CBD creams because they are readily available, and you can apply them directly to your skin at the point of your discomfort. With this type of demand, you will enjoy significant profits if you invest in CBD creams.
- Legality. If you want to invest in CBD cream, you need to understand that the regulatory environment is still ongoing. In December 2018, the U.S passed the Farm Bill that legalized industrial hemp. Industrial hemp is cannabis with levels of HTC. This move was a great relief for the CBD business. However, CBD products are still under regulations. Although marijuana is now legal in most U.S states, the Food and Drug Administration (FDA) is looking at regulating sales. Strict rules that could limit the sale of CBD to companies that have approved products could have a negative impact. Guidelines with specific standards will be beneficial to lead players in the market. However, the FDA is currently only after those companies that sell CBD with false claims.
- Local Regulations. Although the Farm Bill was a great relief for the CBD industry, local laws also govern how CBD is produced and sold to consumers. While CBD is not legal in all 50 states, local regulations differ from one state to another. For instance, Colorado allows the utilization of all parts of the hemp plant while Texas does not allow the use of items with even traces of THC. As an investor, you need to understand the regulations of CBD in your state. You should also keep up to date with the rules since they are evolving as lawmakers try to catch up. These rules have a significant impact when it comes to profiting from the sale of CBD cream. However, most investors are more willing to sell topical CBD creams compared to ingestible CBD products. The general feeling is that ingestible CBD products are more prone to oversight, and the market is crowded with ingestible CBD products.
- Stable Market. The CBD market, especially creams and other topicals, is on an upward trajectory. While CBD cream has traditionally been a small part of the entire CBD market, the number of places that you can find CBD cream is gradually increasing. Research suggests that the growth of CBD cream has been slow for the most substantial part of CBD sellers. However, CBD cream is a safe bet at the moment if you wish to invest in the CBD industry.
- How to Sell CBD Cream. If you live in a state that has legalized both CBD and THC, you can sell CBD creams with 1:1 CBD to THC and other cannabinoid BCP. If you live in a state where CBD is illegal, you can typically make CBD cream available to your customers. Since there are currently no standardized testing and regulations, the best option is to recommend them to use a trustworthy and reliable company that sells CBD cream.
CBD cream is probably a more natural path to profitability. As CBD regulations continue to relax, the market expands too.