No business can claim that their industry is always ‘easy.’ The ebb and flow of opportunities and challenges are inevitable, and it’s the same in the CBD industry. But at the moment, this market is seeing unique developments. Participants should realize how the recent decisions of role players can transform the industry.
The good news is that business is good and growing, thanks to developments such as people talking about how CBD positively affects their lives. There’s surely a higher demand than a few years ago. But will growth continue? These facts and expert opinions on what developments could mean for the CBD industry will shed some light on the topic, but it’s all dependent on important parties’ choices.
Accessibility and Legalization
There’s a good chance that CBD will become more accessible thanks to legislation becoming less stringent on a federal level. It took a long time—until 2018’s Farm Bill—for CBD to be taken off the list of illegal substances in the US, sparking immense industry growth. Also, there is now even a marijuana-related medication for epilepsy that’s FDA-approved—a first of its kind.
These changes happen slowly and need the support of Congress to take place. But at least more and more CBD cases and products are being considered by the government. Also, state laws need to be taken into account apart from federal laws. For instance, the Colorado cannabis law guidelines are still very restrictive, and there are many similar states, such as Florida, where marijuana laws prohibit the public use of CBD that contains higher than the 0.3% legal THC content.
Public Opinion
A beneficial current circumstance is how popular CBD has become and how communities have adjusted their perception on the topic. While most consumers knew very little about the substance and the uses of cannabis only a decade ago, today, in countries like the US, a large percentage of people support its legalization. This is bound to give momentum to actions to adjust legislation and ensure even higher sales figures for entities in the supply chain.
Sustainability
Not everyone knows—yet—that cultivating cannabis and manufacturing items from it, apart from CBD, uses fewer natural resources than many other crops. Also, hemp product ranges often don’t contain any chemicals. Hemp being a sustainable crop, is a huge selling point and can help create a successful CBD industry.
Slowly, people are realizing that hemp products are the smarter, environmentally option. This boosts sales, helps hemp farmers grow their businesses, and benefits the CBD supply chain.
Payment Processing Challenges Continue
An unfortunate issue is how difficult it is for CBD vendors to find practical solutions for payment processing. Many financial institutions don’t want to associate with the CBD industry yet. These challenges won’t disappear overnight, but there are changes on the horizon, such as the SAFE Banking Act.
Marketers Will Find New Ways to Adapt
Over the last few years, despite legislation changes, it hasn’t been easy for CBD vendors to market their wares. While digital marketing is vital and efficient for most industries, CBD outlets can’t get the word out via online platforms as easily.
For one thing, search engines like Google still include ‘cannabidiol (CBD)’ in their list of search terms deemed as unapproved substances. This means it’s not allowed on Google Ads, making it very difficult for vendors to plan efficient marketing campaigns.
Vendors or companies planning CBD marketing campaigns will, for a while, still need to use creative ways to draw attention and promote products. Luckily, with influencer and affiliate marketing being popular in various industries, efficient options are available.
Increased Competition
Yes, there are significant challenges the CBD industry faces, but it doesn’t mean there’s a looming crisis underway. Despite laws and marketing guidelines being frustrating, big, established retailers are adding CBD items to their product ranges. If these big brands feel comfortable that CBD can deliver good ROI, smaller vendors can have peace of mind that the industry at large is only set to grow.
However, with more brands taking notice and stocking products, it will become more difficult for small businesses to survive. Now is the time to strengthen marketing plans and upgrade aspects like packaging and websites. Also, making use of e-commerce instead of only having brick-and-mortar stores is vital.
The Future of CBD in the US
Although no one can predict an exact timeline, the signs are there that many events are set to take place that will benefit the US CBD market. What seemed impossible in the 1990s, having products in this market completely legalized and accepted, could become a reality soon.
For example, with FDA restrictions still in place now, there’s the hope of CBD having a different FDA classification, such as a dietary supplement. Changes like these could open up marketing avenues, increase investor support and simplify CBD vendors’ daily workflows as well as supply chains immensely. On top of that, hopefully, public support will bring about changes in states, such as sparking the legalization of recreational and medical use in the Texas Marijuana laws.
There are no guarantees, but definitely many possibilities.
Conclusion
Some of these facts support the view that the CBD industry has gained enough momentum to keep going indefinitely—in the US and around the globe. With millions of users proving their support by helping to buy CBD products and create a multi-billion-dollar industry, it’s likely to keep growing.
However, having momentum doesn’t mean it’s ‘easy.’ From obtaining better payment processing alternatives to no longer being given limited marketing options, a lot must happen for this market to flourish optimally. One can only hope that role players keep making decisions that benefit users, suppliers, farmers, and vendors.
