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Is it Profitable to Start a CBD Brand in 2022?

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.

The EFSA Put on Hold Novel Food Approval for CBD

Last month a decision was made by the EFSA (European Food Standards Agency) to put a hold on approving CBD as a Novel Food. It was cited that there was not enough data yet on the safety of CBD, and gaps in the data about potential hazards related to CBD.

The European Commission considers CBD to be a Novel Food product but requested feedback from the EFSA to agree on its approval. However, the EFSA revealed that further evaluations needed to be completed to ensure safety for human consumption.

What is a Novel Food and why is it important?

A Novel Food is defined as a food product that has not been consumed to a significant degree by humans before 15th May 1997, when the regulation first came into force. These pertain to newly developed, innovative food produced using new technologies and production processes. To be listed as a Novel Food, the items must be:

  • Safe for consumers
  • Properly labelled, so as not to mislead consumers
  • If Novel Food is intended to replace another food, it must not differ in a way that the consumption of the Novel Food would be nutritionally disadvantageous for the consumer.

Is this classification important for CBD? In short, yes. Having some sort of regulation that can ensure CBD products are safe and are not misleading, is important for customers and brand reputation.

A hold on approval isn’t necessarily a bad thing

There are some who might think this hold on approval is a bad thing for CBD but actually, it can be seen as a positive. The EFSA has noted that there are gaps in the data, but they have not outright suggested CBD isn’t safe for human consumption. The move to put it on hold in the EU is possibly a sign that they are considering following in the UK’s footsteps and requesting more data to be established. In the UK, we have already made the move to list CBD as Novel Food products and despite the EFSA’s decisions, the UK won’t be pulling CBD products from shelves, as the UK FSA have already taken steps to begin establishing regulations.

In the UK many CBD products are listed on the FSA’s website, those of which are legally allowed to be sold. They are still awaiting further assessment but many of them are allowed to be sold on shelves in the meanwhile, as there have been no immediate concerns raised.

Regulations for CBD is not something manufacturers should fear, in fact establishing regulations for CBD can only help to weed out illicit CBD products. Those that don’t contain the amount of CBD they claim or use sub-par, potentially harmful CBD (or none at all!), can easily deter consumers from trying CBD as the results from these products will only ever be lesser. Ensuring that consumers only have access to good quality products is how we can continue to grow the CBD market.

Why you should think about joining the CBD market

Even with the question of regulatory compliance hanging in the air, now is a great time to get ahead and prep your next CBD launch. CBD continues to be popular in the UK and overseas, and regulations only help to ensure that quality products are those that hit the market. Here at Xyfil we continue to produce high-quality CBD products, products that are listed on the FSA’s website, which means quality and safety for consumers.

Let us help get you to market with our experience in product development, manufacture and production. Not only this but we can help get your products onto shelves with our compliance team and understanding of market trends.

UK Becomes the First Country to Regulate CBD Market

The UK has recently become the first country to regulate orally consumed CBD products. Currently, CBD has been touted as a novel food group item or supplementary, but the new move to regulate CBD hopes to “de-risk” CBD (Cannabidiol) to spur innovation. With a clear set of guidelines for orally consumed CBD products, there is a growing likelihood of improvement in the sort of products offered.

In response to this move, the FSA (Food Standards Agency) and the ACI (Association for the Cannabinoid Industry) has created a list featuring CBD products. These products have been given the green light to remain on shelves in line with the UK’s new novel foods regulations. Products that do not appear on the list can no longer be sold.

Ensuring these guidelines are met by CBD products not only helps to ensure the quality and safety of products in England and Wales, but also for investors looking to take part in the CBD industry. Trading Standards will also be enforcing the new rules with immediate effect on retailers selling CBD products.

Regulating orally consumed CBD products

From February 13th, 2020, no new CBD extracts, isolates or associated final products using the novel ingredient CBD, are allowed to be sold until they receive the necessary authorisation. Products that were available beforehand were required to send an application for assessment by the FSA. The complete process of evaluation can take around a year to complete. One month is allowed for the validation process, then up to nine months for the risk assessment, and up to seven months for any subsequent risk management and authorisation decisions.

Most applicants will be manufacturers of CBD brands including us here at Xyfil. A detailed dossier must be provided for existing and new orally consumed CBD products.

There are three parts involved. Firstly, part one should contain all administrative data such as information relating to the applicant. Part two should contain information specific to the novel food (along with a list of references) such as:

  • identity of the novel food
  • production process
  • compositional data
  • specifications
  • the history of use of the novel food and/or its source
  • proposed uses and use level and anticipated intake
  • absorption, distribution, metabolism and excretion
  • nutritional information
  • toxicological information and allergenicity

Part three should include the glossary or abbreviations of terms quoted in the dossier, certifications (on the accreditation of laboratories, certificates of analyses), full copies/reprints of all pertinent scientific data (published and unpublished), full study reports and scientific opinion of national/international regulatory bodies.

Ensuring the quality of the dossier, and the information provided significantly affects the time needed for assessment and authorisation.

Xyfil makes the process simpler for you

Brands can apply for authorisation of CBD extracts and isolates via our compliance and White Label service. We will guide you through the process and secure your products ready for sale. Here at Xyfil, we have worked on countless successful applications for CBD-based products. Our market-ready approach means less paperwork and less hassle in getting your business off the ground.

By working with us you can benefit from our purpose-built analytical laboratory, including patent-pending equipment for generating accurate emissions samples. Work with our dedicated scientists and let us handle your brand compliance from end to end. Get in touch today to get started on your CBD brand.

Popular CBD White Label Products Manufactured in the UK

Since 2017, CBD has seen an explosive increase in interest that has yet to slow down. This is possibly due to the legalisation of CBD in the US and UK, the largest markets for CBD, in 2018. Currently, the UK is the second-largest CBD market behind the US, with an industry worth of £700 million so far – and it’s forecasted to surpass one billion pounds by 2025. So, for those looking to join the CBD market, now is as good a time as ever. Creating your own CBD brand couldn’t be simpler when you manufacture with us here at Xyfil.

Preferred CBD products – the demand for CBD

In a recent study on CBD consumers in the UK, it was found that unsurprisingly the most preferred product type was CBD oil/drops followed by CBD vape and CBD pills/capsules.

[SOURCE: newfrontierdata.com]

CBD Oil is mostly used as sublingual drops that are easy to use and offer a longer release of CBD. Much of the CBD market is made up of CBD Oil so creating a CBD Oil brand can be very competitive. Similarly, CBD vape has grown in popularity due to the convenience of disposable vapes and the quick absorption of the CBD.

How to start a CBD brand in 2022

There are several key steps you need to explore when looking at starting a CBD brand. Firstly, identifying your CBD product type and the niche you can offer can be the make or break of your brand. With many brands looking to step up to the CBD industry, knowing how you can set your products apart is essential for becoming a household brand.

Research is key

Research current products on the market and see if there are possibly any gaps you can use. If you’ve got an innovative new idea on how to introduce CBD to customers, then identify if this is something consumers are looking for. Perhaps you want to hit the popular product types with a new spin that only you can offer?

At Xyfil we offer a wide range of popular CBD products such as CBD oil, CBD vape and CBD creams & lotions. But we can also offer capabilities for many more CBD products due to our versatile manufacturing that can help you create bespoke CBD products. With anything from bath bombs to sleep sprays and more, your CBD product idea can become a reality with Xyfil.

Understand regulations around CBD

Another key aspect is to understand the regulations around CBD. Although CBD in the UK is largely unregulated there are still some laws you should be aware of. For example, the hemp used to create CBD products cannot contain more than 0.2% THC. You also need to know CBD is categorised as a novel food group or vape product – CBD products in the UK cannot have medical claims attached to them. The laws in the UK and US differ slightly, and in the US, there are also different laws for each state. Deciding where you wish to market your CBD products will impact on which regulations you need to adhere to.

Ensure the quality and safety of your products

Lastly, ensuring your CBD brand is made from quality CBD is an important step to creating a premium brand that is both safe and effective. CBD manufacturers that use organically grown CBD from certified hemp farms, particularly in the US, offer the highest quality of CBD hemp on the market. Organically grown hemp is the cleanest available due to there being no pesticides used in the cultivation process – hemp plants are notorious for absorbing everything around them in the air and soil.

You also want to ensure that their CBD is sourced specifically from hemp plants and not marijuana ones (as these contain higher levels of THC). Reputable CBD manufacturers will also be able to provide certificates of analysis (COA) detailing the product content.

Xyfil sources CBD from certified organic hemp farms in Colorado which go through extraction to become CBD Isolate – the purest form of CBD. We are even able to go the extra mile to re-add the terpenes and flavonoids removed from CBD during extraction, to improve the quality of CBD and give users the complete entourage effect without THC.

White label CBD manufactured in the UK

Xyfil are the proud manufacturer of one of the UK’s popular CBD brands, and award-winning CBD vape brand, Cali Greens. Sourced from premium CBD straight from Colorado hemp farms, we offer white label CBD manufacture and OEM CBD manufacture in the UK. Work with us to create your CBD brand and create an award-winning range of products. From flavour development, R&D, manufacturing, production, creative studio work and more, we can help you throughout any stage of the process.

Get in contact with us today to find out how we can help you tackle the UK CBD market.