The hemp industry continues to grow more and more each year. In fact, the industrial hemp market is estimated to be valued around $26.6 Billion by 2025, which is just under 6 times its market value of $4.6 Billion in 2019. Although often portrayed by media as wrought with unanswered questions, such as quality control and legality, more entrepreneurs are starting to revisit the industry in search of their next investment opportunity.
In today's article, we'll be discussing four of the most important products that a CBD retailer should have stocked on their shelves and ready to sell over this next year.
If you're a "green" venture capitalist looking for a quick win, look out for shops strategically selling these. If you're a small shop taking their product management to the next level, here's a basic blueprint that will get you started on the right foot.
A hot item, even in the adjacent and federally-regulated marijuana industry, edibles are our first pick on the list of things to sell. Naturally, you can find a large variety of different products under this category. You can source items like high-end gourmet cooking ingredients all the way to the more everyday options like chocolates, cookies, and even candies.
A huge appeal that comes from edibles stems from the alluring combination behind the available variety of products to source, as well as the margins and accessibility aspects that come to mind as a business owner.
For example, it's entirely possible to (theoretically) niche yourself into a gourmet CBD edible shop, focusing on exquisite high end ingredients catering to home-chefs. On the flip side, you can also niche yourself into an "adult candy shop", as you may, with a variety of chocolates, mints, gummies, and even drinks on all scales of potency in both broad and full spectrum offerings.
That said, the idea of carving yourself into a specific niche isn't the only appeal. As the industry has grown, it's very feasible to network with wholesale CBD companies that specialize in edibles. Edibles are one of the most popular offerings you can buy in bulk, and are known for being one of the cheaper options around, making it a great item to have in your inventory due to their margins alone.
Oils & Tinctures
Next up on the list is one of the "OG" CBD products to hit the shelves, even before the hemp bill was signed into action in 2018. Following the legacy of the legendary Rick Simpson Oil, also known as "RSO", CBD Oils and Tinctures have carved their way into CBD history as one of the go to items due to their wide appeal, heavily based on their simplicity and medicinal claims that are behind them.
Tinctures are an essential item to carry as a CBD shop - not only because of their popularity, but because of its use case alone. Tinctures are especially appealing because they are geared towards a very specific audience - typically those who are older and aren't keen to smoking. This is due to the fact that they are a very easy way to get your product into your customers' systems, and is a very "trustworthy" way to do so.
When it comes to sourcing, tinctures are one of the most widely available items, and have been the go-to for many of the big names in the CBD industry, from the highest end RSO brands to more everyday options like tinctures from reputable brands.
There are a few drawbacks to using tinctures, such as the fact that you need to keep them in a dark, cool, and dry place, which can be a hassle, especially when you're trying to build your own CBD shop. However, having a climate controlled storage space is ideal for the majority of other CBD items as well, so regardless of product type, you'll most likely have to invest in storage at one point or another.
CBD and CBG Hemp Flower
CBD and CBG Hemp flower have grown to be one of the most popular CBD products on the market. Much like adjacent business models in the Marijuana industry, having smokable flower products are essential in todays hemp industry.
As new cannabinoids continue to be discovered in tandem with the ever-expanding selection of quality farms to choose from, having a diverse selection of different hemp flower strains should be an item on your checklist you don't forget about. Hemp flower is considered to be one of the most natural forms one can use to get their desired dose of CBD or other cannabinoids, and is sought after due it being for the most part unaltered.
It's a great way to experience hemp for what it is. With a diverse selection, you can also hone in on those who appreciate the different qualities that come from hemp flower strains, such as terpene profiles and cannabinoid profiles. You'll be able to target those who enjoy the experience of consuming hemp flower, and not just those in search of potential therapeutic relief.
The last point to mention is that having flower also allows you to pivot into other product types such as pre-rolled joints or blunts that you can use for upselling to increase average order value.
The final type of CBD product you should be on the lookout to sell in 2022 isn't quite a CBD product. In fact, the key similarity they have with CBD is they are hemp derived.
What were talking about is alternative cannabinoids. If your keen on trends in the hemp industry, we're sure by now that you've seen the peculiar trend of products like Delta-8 THC, and more recently, HHC, being covered by media lately.
Although a bit outside the realm of typical hemp products, these cannabinoids are a great product to offer (in a range of mediums similar to above) due to the fact that they have a different target audience. You'll be able to target those who are in search of a potentially legal alternative to marijuana, depending on their location and local legislation.
Although there seems to be an endless list of these cannabinoids, we would suggest starting with Delta-8 or HHC products if you decide to have a sub-category dedicated to this audience. Delta-8 would be a great option due to how cheap it's become in combination with its notoriety. HHC is on the move as one of the more potent alternatives, and has quickly gained traction as the new cannabinoid on the block.
If you want to take it a step further, keep an eye out for these cannabinoids as they get discovered. Through a combination of networking and active research, you can position yourself to capitalize on these early and become a go-to source for consumers who are actively watching for these as well.
As the hemp industry continues to grow, more business owners are pro-actively trying to stay ahead of competition in a variety of ways. There are obviously other aspects that come into play when assessing avenues for growth, but a simple method to consider is understanding what products can provide value to your potential audience.
On the other hand, if you are a marketer that is not yet familiar with the CBD market, it's always a good idea to take the time to research the space.
There are a variety of ways to grow your business in the hemp industry, and knowing which product type is right for your customers is the first step.
If you want to make sure you're maximizing your potential to increase your revenue, you'll want to think about said products that will give you the best return on investment. This is where having a solid understanding of your target audience comes into play.
In the end, although growing in competition, we think it's safe to say that there's plenty of opportunity still on the table for those betting on hemp in the coming years.