8 CBD Business Opportunities To Pursue In 2021
Is CBD A Good Business To Invest In?
Are you looking to enter the CBD market but are still unsure about what business opportunities are worth considering in 2021?
This guide will give you the ins and outs of the CBD industry, plus tips and ideas to help you enter the cannabinoid realm and choose a segment of the market that best suits you.
In the past few years, CBD products have become incredibly popular all over the world, and according to these numbers, this health trend is here to stay. In 2020, the cannabidiol market size has been evaluated at USD 9.3 billion. For 2025, the revenue forecast shows that the global CBD market will reach USD 23.6 billion. In the United States alone 14% of Americans have tried CBD oil products, with 40% of those people using CBD products for relieving pain, 20% for anxiety, and 11% for sleep.
So for those of you still wondering “Is CBD profitable?”, we believe it’s easy to see how this industry can rake in the big bucks.
People love high-quality CBD brands that offer products to help them improve their health and wellbeing. And since cannabinoids come in many forms, such as CBD capsules, tinctures, gummies, or drink mixes, customers have options of consumption. It’s little wonder that many entrepreneurs see CBD oil business opportunities as a great way to capitalize on what has become a mainstream money magnet.
There are different ways to operate a cannabidiol business, depending on how much capital you invest, and how much effort you are willing to expend. Some of the most common models include manufacturing, retail, drop shipping, blogging, or affiliate marketing.
But before we start discussing what CBD business opportunities we believe are worth considering in 2021, lets first have a look at some CBD facts you might find interesting.
CBD In A Nutshell
It’s likely you already know that CBD, short for cannabidiol, is a naturally occurring chemical compound found in the flower of the Cannabis Sativa plant. But did you also know…
- CBD is one of the 113 cannabinoids found in cannabis/hemp plants
- CBD is currently one of the fastest-growing industries
- CBD (high-quality) is generally safe even for pets and children
- CBD may help some people manage their cannabinoid deficiency
- CBD is federally legal, provided it comes from industrial hemp plants
- CBD and the endocannabinoid system naturally interact within the body
- CBD formulas on the market come in three versions: full spectrum, broad-spectrum, and isolate
- CBD generally works better with other cannabis compounds
- CBD is psychoactive but non-intoxicating
- CBD won’t make you high
- CBD has been used by many famous women in history, including Queen Victoria
8 CBD Business Opportunities
1. Become A CBD Manufacturer
Among the many CBD business opportunities available nowadays, becoming a manufacturer is probably among the most complex ones. While it’s possible to create your own hemp-derived CBD product line, many entrepreneurs choose to work with a manufacturer instead.
There are many reasons for this, but what it mostly comes down to, is convenience. The manufacturer will handle all the hard work of creating a private label, providing 3rd party testing, and ensuring the products abide by FDA regulations. With these aspects of the business taken care of, retailers are just left to focus on bringing in customers.
But if becoming a CBD oil manufacturer is something you want to pursue as a business opportunity, with such great competition, the first thing you should make sure of is that your product is top of the line. Other than that, you need to have the technology necessary to extract CBD oil from the hemp plant. Understanding the nuances of this technology, and of the extraction methods available is crucial. These resources will impact the quality of the hemp-derived CBD products you will sell, but also how much they will cost.
Once your product has been approved, you need to learn about your competition.
Determine who their customers are, and how you can bring them over to your side with better offers. Price and quality are some of the most basic ways to do this. But, you might also be able to discover a segment of the CBD market that is not sufficiently served, and carve out that niche for your own products.
One other thing you need to determine if you decide to pursue this CBD business opportunity is how you plan to sell your products. Are you looking to sell them by yourself? Or are you considering using distributors?
Selling to retailers is a fantastic way to create brand awareness, boost revenue, and grow a wholesale distribution business. You will need to contact shops, websites, or affiliates that would be interested in selling the products for you.
2. Become A CBD Blogger
Having a blog is the dream business of many people. And why wouldn’t it be? A blog allows you to be your own boss, work from home or wherever else you prefer, and generate a passive income. But how about having a blog dedicated entirely to CBD products? Does this sound like one of the business opportunities worth considering?
But let’s get one thing clear first. Starting a CBD blog just for fun is much more different than making a business out of it, where the main purpose is to get potential customers onto your website (and convert them into interested leads).
When it comes to blogging, it does not matter if you write for your business or you are planning to become a CBD oil affiliate. Blogs are a great way for you to build trust and establish a leading position in the CBD industry. Especially if you are short of money, affiliate marketing requires very little startup costs. All you need is to market the CBD products online and get a commission for each sale made through your efforts. You won’t even have to forward orders to the manufacturer because customers will be directed straight to the company’s website once they click on your affiliate links.
Another benefit of having a CBD oil blog is among the 2021 business opportunities is during these uncertain times, more and more people prefer to do their shopping online. And when it comes to selling CBD, things are not so much different. According to E-Marketer, US e-commerce sales will reach $794.50 billion this year, up 32.4% year-over-year. That’s a higher growth rate than the 18.0% predicted, as consumers continue to avoid stores and opt for online shopping amid the pandemic.
One of the ways you can make a profit with these types of CBD oil business opportunities is through display advertising. Display advertising allows you to earn money in two ways; Either by getting paid for each click (every time a visitor on your social media account or site actually clicks on an ad displayed) or if you join a cost per thousand (CPM) network which lets you earn a set amount of money for every 1,000 ad impressions. It doesn’t matter whether a visitor clicks, as you will be paid for displaying the ad. If you have a lot of traffic or followers, you can make good money on advertising by selling ads directly. This allows you to set your own rates and conditions, and have more control over ad placement.
A second way to make money from CBD blogging is through sponsored posts and brand campaigns. With these, you can promote cannabidiol products directly in exchange for compensation, while deliverables could include blog posts, videos, and social media posts that showcase the products.
So let’s see now how you can turn your CBD blog into a truly lucrative business opportunity.
First of all, you need to enjoy writing about cannabidiol topics. You shouldn’t start a blog if you don’t love what you’re blogging about. And since the CBD subject is all you will be talking about, you must have a real curiosity to discover new ideas and topics to create that type of content that can build your audience. Keep your posts educational, and remember that no one cares about your business until you can solve their problems.
The second important thing about blogging as a business is that you need to write regularly. Over time, this will generate new traffic to your site and get you found online easier. And if your blog is properly integrated for lead generation, you will start to generate new business relatively quickly.
Third, make sure that you use SEO tactics to properly optimize your text. Search for the best keywords related to the CBD industry, and integrate them throughout the content body.
3. Become A CBD Influencer
If you are worried about “How much money does it take to start a CBD business?”, there are many opportunities out there that will cost you close to nothing.
Becoming a CBD influencer is one of them. And If you are wondering how you are going to make money as a CBD influencer, that’s what we are planning to discuss in the following section of this post.
If you are constantly present on social media platforms and you are followed by a substantial number of people, influencing their buying decisions can be a way to bring in an income, and in time can even turn into a full-time job.
What you should know though is that not all social media platforms allow for CBD advertising. Facebook for example has lifted its ban on CBD products as of June 2019, allowing advertisers and influencers to publish ads promoting topical hemp products. And although Instagram and Twitter don’t allow CBD products that are being promoted by means of paid advertising, influencers can still post information about new products and link back to their website.
4. Become a CBD Retailer
Becoming a CBD retailer is among the business opportunities entrepreneurs are most interested in for 2021. The retail model simply involves buying CBD products from a manufacturer or wholesaler and marking up their price to make a profit from your sales. You can choose to sell CBD both through a brick and mortar store and online, but in both cases, you will also need a place to store the products.
Once you decide how you will sell your products, what the initial costs are, and who will be your customers, the next most important thing you need to do is find a supplier.
Choosing the right CBD wholesale program is vital for your business. Partnering with a producer who is not reliable, or one which doesn’t provide high-quality products will negatively affect the satisfaction of your customers and the reputation of your business.
So how do you choose the right CBD product manufacturer?
Our suggestion is that you look at the following parameters:
Quality – Ingredients are extremely important when it comes to CBD especially since consumers are becoming increasingly concerned with the quality of the products they are consuming.
When you’re narrowing down the brands you’re interested in working with, make sure you know how each producer ensures product quality, and what is the source of the hemp they use. If you are looking for the most reputable hemp farms that are producing the highest quality crops, these can be found in the US or Europe.
Other than hemp source, another thing you should know is whether the supplier follows the industry’s best practices and extraction methods. CO2 extraction is most recommended because oxygen-free environments and low temperatures are particularly important when extracting fragile oils like cannabidiol. In addition, CO2 extraction ensures a product free of contaminants, pesticides, or heavy metals.
Lead time – how long do you need to wait between placing an order and receiving your goods.
Payment – what are the payment terms and conditions.
Communication – how responsive is the producer, and how easy is it to communicate with them.
Reputation – Reputation matters, especially today, when most consumers are searching the Internet and using the available online tools before making a buying decision. A CBD business comes with many opportunities if you make sure you work with brands that have a good name in the industry. That’s why it’s important to get to know what other business owners are saying about these suppliers. Are they reputable? Will they meet your expectations?
Do you need a license to sell CBD? – While selling cannabidiol products is perfectly legal and doesn’t require a business license, you will still need a standard business reseller’s license if you are planning to sell CBD products online. Check with your state, city, or town to see what, if any, other licenses you’ll need to open your CBD oil retail business.
What CBD products will you sell? – As some of you know by now, CBD products are incredibly diverse. In fact, you can find cannabidiol almost in everything today. To help you get your head around what products to choose for your customers, here’s what the results of a survey conducted by SingleCare are saying:
- Nearly 50% of people who have used CBD prefer oils/tinctures, lotions/balms, and gummies. And those who haven’t tried it are more open to these products as well.
- 29% of people are interested in CBD lotions and balms
- 28% of people are interested in CBD gummies
- 26% of people are interested in CBD oils/tinctures/drops (oral)
- 18% of people are interested in CBD capsules/tablets
- 18% of people are interested in CBD oil sprays (topical)
- 17% of people are interested in CBD-infused food (e.g., CBD chocolate)
- 13% of people are interested in CBD vaping products
- 12% of people are interested in CBD soap
- 11% of people are interested in CBD-infused drinks (non-alcoholic)
- 9% of people are interested in CBD bath bombs and bath salts
- 9% of people are interested in CBD-infused alcoholic drinks
- 8% of people are interested in CBD skincare products
- 8% of people are interested in CBD patches
- 1% of people are interested in other CBD products
Marketing your CBD products is the last point on our list, but not the least important. Starting a new business comes with a lot of work but it doesn’t stop once you are all set and ready to sell your products. Promoting them is the other half of the equation.
Wondering what are some of the most effective ways for CBD marketing?
- Exclusive previews
- Introductory offers
- Contests and giveaways
- Keyword research and SEO optimization
- Email marketing
- Content marketing including blog posts and social media pages
- Events (virtual and in-person)
- Attend trade shows
- Customer reviews
- Link building
5. CBD Drop Shipping
CBD drop shipping is one of the cheapest business opportunities one can pursue today, being currently legal in the US and Europe, but not in Canada or Australia. If you are not familiar with dropshipping, you simply need to arrange a drop-ship agreement with one or more companies that produce CBD. Basically, you sell the CBD products on your site, forward the orders electronically to the supplier, who will fulfill the order and ship directly to customers.
For those wondering “How do you make money selling CBD?”, dropshipping is considered to be a great profit potential, mainly because you can completely eliminate the need to pay for warehousing and tracking shipment costs. By partnering with a drop-ship CBD company, you can use their existing business arrangements with warehousing and packaging on your behalf.
6. Open A CBD Day Spa
Couldn’t find a CBD business opportunity above that suits you?
How about opening a spa based only on products infused with CBD?
In times of crisis, investing in beauty, rest and relaxation might sound ridiculous. And this is especially true if you’re on a tight budget. But once the COVID-19 pandemic ends, people are likely to resume a normal way of life.
Known for its healing properties, cannabidiol is also beneficial for the skin hence the influx of CBD-infused products in the spa and skincare market we can see today.
While running your own CBD day spa can be challenging, this CBD oil business opportunity can also be rewarding for those passionate about beauty and wellness. And if you are worried about the costs involved with running a day spa, there are various ways that you can get the financing you need. As a new business, you may need to raise the capital from family, friends, and personal loans. Once you’ve established your business, you may then be in the position to tap more traditional resources.
If you are ready to venture into the world of CBD skincare, here are some category of products you can use for treatments in your spa:
- Day/Night creams
- Massage oils
- Body butter
7. Open A CBD Based Pet Shop
Animal lovers with a creative spirit may find opening a CBD based pet shop as one of the greatest business opportunities for 2021.
And they might just be right!
When it comes to CBD, the pet niche is not yet fully exploited, so you don’t have to race with the same level of competitiveness as the one surrounding the CBD market for human consumption. And other than being a fun business where you get to work with cute furry friends, opening a CBD pet shop can also be a very lucrative enterprise.
Here’s what a survey conducted by AmericanMarijuana.Org that included 1061 American pet owners of different ages and levels of income, revealed:
- Although COVID-19 has affected their finances, 36% of the participants are still willing to buy CBD for pets post-pandemic.
- 9 out of 10 participants would recommend CBD for pets to others.
- Before using CBD on their pets, 20% were concerned about its efficacy. After using it, 56% of them were no longer worried about that issue
- Before using CBD on their pets, 61% of the participants were worried about its safety. After using it, 40% of them were no longer concerned about that.
- 20% of participants were concerned if using CBD on their pets was worth buying. After using it, 60% were less worried about that, and 25% no longer had this concern.
- Half of the participants said that their friends/family members/colleagues recommended CBD for pets to them
- 26% of the participants said their vets recommended CBD for pets to them
The bottom line is that most CBD pet businesses can be great opportunities for all entrepreneurs wishing to bring the extraordinary benefits of CBD to our four-legged friends. If that’s you, don’t let the financial costs or the lack of expertise scare you. With a good wholesaler, a strong brand identity, and creative marketing, you can have a good shot at carving out a profitable niche in the CBD industry.
7. Start a CBD Podcast
Starting a CBD podcast is the last point on our list of opportunities for 2021, but this doesn’t mean this business idea is any less promising than the ones discussed above.
With both podcasts’ and CBD’s popularity on the rise, what better combination than combining these two together. And if you’re on the fence thinking that it might be too much of a complicated venture, that you couldn’t be further away from the truth.
Podcasts require a minimal up-front investment, are surprisingly easy to implement, and represent an enormous opportunity for showcasing expertise in a way that other formats can’t accommodate.
Through your CBD podcast, you could provide in-depth information on the science and the regulations behind the rapidly-growing CBD space, but you can also run interviews, product reviews, and updates on the latest hot topics regarding the CBD market.