The marijuana market is getting more and more attention. Broad recreational use laws have been passed in seven states and the District of Columbia, making it legal to own and sell in these areas. Additionally, 29 states, including those with recreational use, have approved broad-use medical marijuana. This more accepting culture and the shift in regulations has also brought CBD oil into the forefront. As a non-psychoactive substance, CBD oil is often advertised as legal to sell in all 50 states. It’s also experiencing rapid growth in the marketplace, making it an area that is ripe for investment as long as you understand the challenges ahead of time.
The Health Benefits of CBD
Cannabidiol, also known as CBD, has been the subject of several recent peer-reviewed studies. Combined with tons of anecdotal evidence, the overwhelming impression is that CBD can offer significant health benefits. The fact that marijuana has been approved for medical use in more than half the country helps lend credence to the belief that CBD also has medical uses. Given that CBD is derived from the industrial hemp plant and does not have any psychoactive components, CBD oil can be used for patients that are otherwise not good candidates for marijuana.
The Dark Side of CBD Sales
With this sudden expansion in the CBD market and availability of high-quality hemp plants to extract the oil, the market has exploded. Like any sudden growth industry, new entries will face their share of challenges. The biggest challenge you will face is your supply line. Becoming a CBD retailer is fairly straightforward, but obtaining quality product can be a challenge. CBD oil is only legal in all states when it comes from industrial hemp plants, but these plants contain less CBD than marijuana plants. Industrial hemp plants naturally contain no more than 0.3 percent THC, the psychoactive component of marijuana. Marijuana plants often contain more than 10 percent. The distinction between industrial hemp and marijuana plants is what allows retailers to sell hemp oil products. A significant market segment wants to be sure that their CBD oil is completely THC-free, so knowing where the oil comes from and where it is legal to sell is important.
Even with the sometimes hazy legality and difficulty obtaining pure products with a clear production line, CBD represents a large market with explosive growth potential. Some projections expect the market to grow by 700 percent in less than three years. With that kind of potential return, CBD might be exactly the invest you’ve been looking for.
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