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CBD products are currently some of the most talked-about and in-demand items within the natural health and wellness world.

While the idea of using CBD as a natural remedy is not a new one, it is only in the last few years that it has become more of a mainstream product.

The sudden interest in CBD as a supplement is partly due to changes in the law.

In 2020 the global cannabinoid industry was estimated to be worth 2.8 billion USD. The industry is expected to see an annual growth of around 21 percent over the next decade. It is, therefore, not surprising that the CBD industry is growing so quickly as people look to profit from the popularity of CBD.

How The CBD Industry Is Changing

One of the leading factors in the sudden popularity of CBD is the 2018 Farm Bill which legalized the manufacturing, selling, and usage of hemp supplements on a federal level. Following the passing of this bill, the USA hemp industry exploded in size and popularity.

Initially, regulations struggled to keep up with the growing CBD industry. While this growth saw many excellent CBD and CBD wholesale brands enter the USA market, it also resulted in many brands offering less than satisfactory quality.

This is to be expected when an industry grows fast, and it was not long before further regulations were put into place. The Food and Drug Administration (FDA) conducted a study and reported to the U.S. House on the widespread mislabeling they had found within the CBD market.

The report led to stricter labeling for wholesale CBD products. The regulations were designed to ensure customers knew exactly what they were buying and could compare different CBD products side by side easily.

Stricter regulations have made it slightly harder for new smaller businesses to quickly establish a product range and start earning a profit. When first starting a CBD business, there are two main avenues to pursue.

Firstly, private labeling allows for complete control over the CBD products being manufactured, but equally can be time-consuming and costly.

Secondly, there is the option to work with wholesale labeling companies or white-labeling as it is sometimes known. This option provides less control in the manufacturing process but is much better for people who want to focus on the marketing of their new CBD company.

So, what is wholesale labeling, and what are its benefits?

What Is Wholesale Labeling?

Wholesale labeling is best for new business owners who want to focus on the customer side of the business instead of sourcing and manufacturing products.

A wholesale labeling business owner works closely with a larger manufacturing company. Rather than sourcing and overseeing the manufacturing of CBD products, this is all done by a larger company. This takes some of the burdens away from new business owners when it comes to staying up-to-date with new regulations and manufacturing methods.

Instead, as a business owner, you choose the products from the range on offer, and a personalized label and branding are then applied. Products are then ready to be delivered to stores or warehouses and ready for sale.

There are two significant benefits for small business owners who choose to sell wholesale label CBD products.

1. Benefits Of Wholesale Labeling For Small Business Owners – Cost

The first benefit for business owners just starting out is that the up-front cost is lower. There is no need to invest in factory space or equipment. Instead, money can be invested in designing eye-catching labeling and marketing materials.

A small business owner only has so much in the way of time, money, and resources to put into sourcing and manufacturing CBD products. Having a larger and more experienced company fulfill these roles allows for the production of high-quality products at a much lower price point.

2. Benefits Of Wholesale Labeling For Small Business Owners – Expert Knowledge

Choosing to sell wholesale label CBD products means there is less of a need for expert knowledge in the growing and manufacturing of CBD products.

Wholesale label CBD suppliers guarantee a certain level of quality and reliability in their products, giving new business owners peace of mind that the products they are selling meet specific standards.

By not having to invest so much time into learning about the manufacturing of CBD products, new business owners can instead put this time and effort into setting up their new store. Time can be invested in learning more about marketing and selling techniques which will help to ensure a successful new business.

The benefits of wholesale labeling are not limited to smaller business owners. Customers also benefit from purchasing products that have wholesale labeling.

3. Benefits Of Wholesale Labeling For Customers

CBD wholesale label products are not designed or manufactured by the company selling them. Instead, these products are sourced and manufactured by larger companies that supply products to tens if not hundreds of different small businesses.

On a practical level, this means that wholesale label CBD products are more likely to meet a higher standard as they have been made using large-scale state-of-the-art equipment. More in-depth testing is also likely to have taken place to ensure that all CBD products meet strict quality checks.