Investment Guide – The Rise of CBD Manufacturing in the US

CBD Oil is projected to be a $2 billion industry by 2020. Compared to the approximately $100 million it brought in 2015, that is genuinely astronomical growth. With changing laws and regulations nationwide favoring the industry, many are looking to get in on the game. More people are looking at the many different beneficial uses of CBD oil to solve a variety of health issues such as pain. If you are interested in investing in either a company or starting your own company, there are few things to you need to know. This short guide will explain to you the basics of CBD manufacturing and the best approach for getting invested.

 

Know Your Local, State and Federal Laws

Generally, the first thing you want to ensure is that either you or the company you are investing in is working with a hemp-derived product. Although the federal government has not thoroughly weighed in on the decision, you can find hemp-based products throughout all fifty states.

This factor has a significant impact on business because this will determine where you can ship to and how large a market you might be able to hit. Also, you need to be sure your local and state governments have no prohibition on the product or similarly require certain taxes on CBD manufacturers.

Understand Supply and Demand

Naturally, this goes with any type of business. However, in boom economies like this one you often see a ton of new players rushing to the market. This problem causes a severe decline in prices. With so many new manufacturers, CBD oil prices are a fraction of their former cost so many companies try to make up for this shortfall through producing high volumes of product. This constant competition can be a self-defeating cycle, so instead, opt for product differentiation.

What’s unique about your product? Customers care about certain CBD formulation capabilities including, benefits, quality, sourcing, components and even packaging. Everything really goes back to the manufacturing process. If you distinguish yourself as producing a high-value commodity, you’re much more likely to succeed and sell at a higher margin and volume.

 

Diversify Your Holdings

Once again, this advice applies to any booming industry, but it can be difficult to tell which products are bound for success and which ones will fail. The old phrase “don’t put all your eggs in one basket” really applies here. CBD is a very new product on the mass market and there’s no telling what regulations may have an effect down the road.

Widespread legalization across the US may encourage massive existing operations to get involved. It can be difficult for a small company to compete with an enormous organization such as Pfizer and Bayer so do be aware that with this kind of market volatility and instability, you invest with a significant amount of caution.

Invest Wisely in CBD Manufacturing

Investing in CBD Manufacturing is a fantastic opportunity. It offers you the chance to get involved in a product that is packed with a wide range of health benefits while potentially seeing some incredible returns. Do your homework, invest cautiously, and watch the market well. These actions will lead to being poised to see some astonishing success as this industry booms.

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