Now, we know what you’re thinking. Why on earth is a finance company that finds funding for eCommerce companies writing about the CBD industry?
A fair question.
Well, with upcoming regulation changes about to be introduced within the cannabidiol market, comes an incredible opportunity for many CBD businesses to benefit massively- and we want to shout this from the rooftops. However, with a lot of uncertainty still surrounding these new rules and regs, we’ve been researching how you can be best prepared in order to make the most of the changes. Here are our findings.
So what’s the latest?
The CBD industry’s global revenues are predicted to reach almost £20 billion over the next 5 years- impressive! Therefore, it is no great surprise that global regulation bodies have taken note and are now catching up - with some people arguing that there is even a move towards the legalisation of medical marijuana in both the UK and US. Currently, the market exists in two segments: medical marijuana-derived CBD and industrial hemp-derived CBD, with the former making up the largest proportion of sales globally.
There has been a seismic increase of global sales within the CBD industry and the market is showing a double digit growth rate. Couple this with the way the industry is breaking free from prevailing stigmas and stereotypes, we can now see that consumers come from a variety of age brackets and socioeconomic backgrounds. With an estimation of over a million users of CBD products in the UK alone - clearly CBD is here to stay!
However, regulations within the UK CBD industry are changing the way some CBD companies do business, specifically with regards to edibles. Amongst other things, the Food Standards Agency (FSA) announced that companies must submit detailed food authorisation applications for all CBD products by March 2021. These regulations are a sign that the CBD industry is growing and that it’s expansion can no longer be ignored.
So what does this actually mean for you? Instead of seeing the regulations as a clamping down or caging of the CBD industry, you should see it for what it is: an opportunity. With the most up-to-date information, correct business model, and proper funding, you can position yourself as an expert in your field, and build a stronger and even more loyal consumer base.
We’ve collated our three top tips for how you can navigate these industry shifts.
Top tips for success
1) Familiarise yourself with the relevant regulatory bodies
Establishing relationships with regulatory bodies such as the FSA will be invaluable not only for your customers, but also for the CBD industry itself. By engaging in dialogue around regulation changes, you will:
- Ensure that you are always giving the best, safest, most accurate and up-to-date information to your consumers.
- Add your voice (and data!) to regulatory bodies that create policy. Make the changes you want to see in the industry. Got an idea? Tell someone about it.
2) If you are considering growing your business, why not explore new opportunities to expand your business model?
As you establish your business, selling directly to consumers is - of course - a natural starting place. However, not to sound too stomach-churningly cliched, but if you always do what you’ve always done, you’ll always get what you’ve always gotten. In light of this increased regulation, you may find a potential avenue to expand into retailer relationships. Did you know large retailers such as Holland and Barrett and Tesco now stock CBD products on their shelves?
3) Educate, educate, educate
How many times have you been asked whether CBD is safe, or does it get you high, or how is your specific product made? Consumers understandably have lots of questions when exploring CBD products. Clarity is key. Establishing yourself as a thought leader and trusted advisor will generate traffic to your site and ensure that you are keeping up to date with the latest information.
The future of the CBD industry is exciting for cannabidiol business owners - provided you properly prepare for March 2021. Don't be left caught unawares about the changes in the law, and - if you want to really grow - make active changes within your company to reap the benefits of regulation.
Want to see how Business Score can help you find funding for your CBD company? Give us a call on 020 331 812 63 and make it happen.
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