New CBD start-ups are hardly in short demand but doing it right and doing it well can be a different matter. Does this mean that you shouldn’t consider starting a CBD brand in 2022? Absolutely not! In fact, now is a great time to join the CBD market and we’ll tell you why.
The growth of the CBD market
Data has shown that the UK’s CBD market has blown well past the estimates previously thought. In 2021, the CBD market was worth £690 million, where only a few years ago it had previously been estimated to be worth £526 million by 2021. It’s now forecasted that the UK CBD market could reach £1 billion by 2025. Is there a reason for this surge?
There have been notions that the UK’s market worth has grown so well due to our evolved regulatory framework. Across the globe, most other countries where CBD is legal, do not have much or any regulation regarding CBD products. In this case the UK is leading the way with our regulatory framework that is working to ensure UK CBD products are both safe and good quality. As of March 2021, all CBD products in the UK must be filed for approval through the Foods Standards Agency (FSA).
One of the reasons why a lot of consumers are turning to CBD products now are due to the reported benefits for those with stress and anxiety. Although there is much research still underway to prove any sort of medical benefit, many believe that CBD can help them. And after the influx of stress and anxiety thanks to the recent pandemic and global lockdowns, people are looking for ways to help. It is important to note however that those who sell CBD in the UK cannot make any medical claims about their products unless they are regulated, medicinal products registered with the government.
What’s holding back CBD in the UK?
As mentioned, the lack of medical verification on the effects and benefits of CBD is one thing that does hinder the CBD market. Many of the studies and clinical trials were only able to begin after its legalisation in 2017. And while we wait for these results and further testing, many reputable companies are unable to express the benefits of their CBD products.
This leads onto the next issue; awareness and education. The lack of public education and awareness around CBD, especially on the legality and effects, has left a largely untapped market in the UK. Currently, younger demographics (between 18 and 30) are the most likely to use CBD. As the regulations change and more information becomes readily available for the public, we should see an even greater increase in market growth.
How to start your own CBD business
Starting now is the perfect time to create and establish your brand before the tidal wave of others that are sure to follow. Even if you only offer a limited range of products in the beginning, ensuring your presence in the CBD market will help you in the long run. Where do you begin then?
Sourcing your product
Possibly one of the most vital parts of establishing a CBD brand is sourcing your materials. Whether you’re looking to launch a CBD vape range, CBD topicals range, CBD oil drops or other product types, your CBD should be of the highest quality. Ensuring the hemp that your CBD is sourced from is organic and grown on regulated farms helps to establish your product’s quality. When it comes to health and wellness, customers are much more clued into the quality of products. With many articles across the web pushing for those who buy CBD products to check their ingredients, lab reports and more, transparency is key.
Organically grown hemp means that your products are more likely to be free of any harmful chemicals that could be present in pesticides – hemp is well-known for absorbing all nutrients from its environment. Many choose to source their hemp from farms in the US where most of the high-quality, high-grade hemp is grown. Now sourcing your own hemp can be costly and time-consuming, as well as the process of importing and processing into CBD oil. This is why many brands turn to wholesale CBD manufacturers like Xyfil.
Branding and target audience
There are already several CBD brands that have established themselves as market leaders, even in the early stages of this market. Because of this, newcomers will need to position their products with smart branding to truly stand out. Finding a demand that is currently not being met and targeting key types of customers will work to your advantage.
We know that the majority of those who are likely to use CBD are aged between 18 and 30. Do you want to create a brand that caters for the younger audience or young at heart? Thinking about the type of customer you want to reach, and their needs will help guide your brand.
Diversify your product range
When first starting out it’s probably a good idea to launch your key product that’s tailored towards the audience you wish to hit. That way it helps establish your brand and your products. Once your brand name and message are out there, diversifying your range allows for more opportunities to upsell and entice more customers. If you’re looking to upsell and increase customers’ order values, then creating products that are co-ordinating are the perfect next step. For example, CBD disposables could give way to CBD vape liquids or CBD shots that can be added to E-Liquids, all of which you can find in Xyfil’s repertoire.
White label manufacture or OEM?
When it comes to producing CBD products with a trusted CBD manufacturer like Xyfil, you often have a choice of white label manufacture or OEM. OEM allows for much more versatility with CBD products by creating recipes, product types and more that are completely your own.
However, for hitting markets quickly, white label manufacture is unrivalled. Especially in the current market where CBD products are only allowed on shelves after being registered and approved by the FSA. Therefore, using CBD products and formulas already registered like Xyfil’s CBD product list, helps to get on shelves quicker and with less cost overall.
Whatever you choose the CBD market in the UK is quickly growing and is a worthwhile investment to join. But to make the most of the CBD market, and with the regulations that are being established here, it is imperative to make sure your products are high quality. Xyfil is proud to be a leading CBD manufacturer in the UK with our high-grade CBD oil sourced from organic, regulated hemp farms in the US. Make the most of our award-winning CBD formulas and well-established products that have helped many brands already hit shelves in the UK.