The legalization of cannabis has been spreading like wildfire all throughout the United States, and it was only a question of time even before the cannabis business experienced extraordinary growth. By 2020, it is expected that the legal cannabis industry in the United States alone will be worth $20 billion dollars.
There is a specific subsection of the cannabis market that is currently popular, to the point where it is transforming into a mega-industry right now. According to market researchers, the Cannabis oil segment is predicted to be worth approximately $20 billion by the end of the decade.
This has resulted in an increase in the number of companies joining the market. Even attempting to distinguish your CBD e-commerce firm from your competition is an uphill struggle at this point.
If brands want to reach the top of the chart and distinguish themselves from their competitors, it becomes clear that they must implement a comprehensive CBD marketing plan to achieve success.
Toward that end, ENVEED’s complete cannabis, and CBD oil branding guide, is designed to provide you with a complete picture of how to promote your CBD business like a professional in 2022 and the years to come.
What Exactly Is CBD?
Cannabidiol (also known as CBD) is a common substance isolated from the flower extract, leaves, and oil of two strains of the cannabis plant: commercial hemp and marijuana. CBD is a cannabinoid that has anti-inflammatory and anti-cancer properties. You may find out more about it by clicking here.
In the cannabis plant, CBD is part of a larger class of substances known as cannabinoids, which are abundantly present in the plant’s leaves and flowers. There are approximately 113 known effective cannabinoids in the cannabis plant; THC is perhaps the most abundant, with CBD following closely behind.
Instead of producing a “high” sensation like THC, which when consumed or smoked results in the “high” experience often associated with cannabis, CBD does not provide a feeling of euphoria, hallucinations, or psychoactivity when taken.
The plant has a significant amount of THC (tetrahydrocannabinol), and it also contains a significant amount of cannabidiol.
What Is The Size Of The CBD Market?
This industry is already enormous and rising rapidly, owing to increasing public acceptance of CBD as a legitimate supplement to traditional medicine, ongoing research into its advantages, and supportive legislation such as the national Farm Bill 2018.
According to conservative estimates, CBD sales will reach over $1.8 billion per year by 2022, representing a significant increase from sales of roughly $500 million during 2018. Experts have predicted that the CBD consumption market will eventually outpace the entire medical cannabis sector, and they have been suitable for the past couple of years.
A closer study of performance patterns, on the other hand, reveals that the CBD market in the United States is really following the footsteps of the legal cannabis market, which would be expected to be worth about $23 billion in the next decade and a half or more.
What Is It About CBD That Has Made It So Popular?
What is it about CBD products that have millions of consumers splurging on them these days? Its widespread use may be explained by the following notable advantages:
CBD Does Not Have A Psychoactive Effect
This is the overall characteristic that contributes to CBD’s perception as being more reasonable and safe than other cannabis-derived products. According to previous information, CBD does not produce any psychotropic effects whether vaped, smoked, consumed, or applied topically to the skin, in contrast to THC. In a nutshell, it can be used by anyone even without the risk of becoming expensive, which would be a significant advantage.
It Is Permissible
The enactment of the Agriculture Development Act of 2018 is perhaps the most significant reason why CBD has experienced such a surge in popularity. With the approval of the Act, the selling of Cannabis products became totally lawful (aka Farm Bill 2018). Other CBD products in the United States, such as marijuana, are not subject to the same restrictions, as the drug has not been legalized inside the majority of states in the country.
Highly Effective Complementary And Alternative Treatments
There are thousands of scientific research papers and reviews that demonstrate that cannabidiol (CBD) is helpful in treating a wide range of illnesses, including depression, stress, and pain. Here are some examples of CBD advantages that have been demonstrated:
- CBD oil is effective in the treatment of pain. A number of studies have demonstrated that CBD is a good treatment for the suffering associated with a variety of illnesses, including migraines, Multiple Sclerosis, muscular spasms, arthritis, lupus and intestinal issues, cancer, and many more.
- CBD oil has been shown to relieve depression. Researchers have discovered that CBD can raise the amounts of happy-feeling chemicals such as serotonin in the body. These biochemicals are known to promote tranquility and deactivate the substances that are responsible for sadness, hopelessness, and other depression-related symptoms, among other things.
- CBD oil is effective in the treatment of cancer pain. CBD has demonstrated significant promise in the treatment of cancer treatments, such as chemotherapy, including the alleviation of pain.
Scientists and researchers have conducted studies that appear to suggest CBD may be a potential treatment for a variety of cognitive decline as well as brain-related conditions, including Huntington’s Disease (a type of dementia), Alzheimer’s Disease (a type of dementia), PTSD (post-traumatic stress disorder), bipolar disorder (bipolar disorder), Parkinson’s Disease (a type of Parkinsonism), Lou Gehrig’s disease (ALS), and many others.
In fact, the Food and Medicine Administration recently approved Epilodex, a CBD-based drug for the treatment of epilepsy that is the first of its type in the world.
Creating A CBD Brand And Marketing It
Starting a Cannabis business might be reasonably appealing due to the fact that the barrier to entry into the industry is substantially lower than the average. In part, this is why the amount of CBD stores has exploded into the thousands virtually overnight, especially online and in the physical retail sector.
The reality, on the other hand, is that obtaining a CBD business off the ground may be pretty tricky. Increasing the awareness of your CBD brand might be even more difficult, especially given the fact that so many people are all still unaware of the differences between CBD and marijuana.
The Challenges of Cannabis Marketing
Despite the industry’s expansion, CBD enterprises and the market everywhere are confronted with a slew of obstacles, the majority of which are related to regulation, legality, as well as consumer confusion.
Challenge #1: Lack of Education
In spite of its recent resurgence in favor, CBD has been fraught with controversy from the beginning of its use. An increasing number of individuals are becoming aware of the existence of CBD.
That CBD is a perfectly legal, safe, and effective option to other drugs is something that the vast majority of people are unaware of. Because of its association with marijuana as well as hemp, both of which could be used recreationally, CBD oil still carries a negative connotation with the public. As a result, there is still some hesitancy about using CBD products.
Challenge #2: The Market Is Becoming Increasingly Congested
This CBD market is mainly uncontrolled at this time. Furthermore, the barriers to entry are just so low that virtually anybody can jump on board the CBD bandwagon without hesitation.
If you’re not familiar with the subject, craft beer companies have been experiencing financial difficulties in recent years as a result of the influx of new local breweries that have sprung up all over the country.
As the CBD market is oversaturated, just the most well-positioned CBD firms will be able to survive the fierce competition. Several factors are brought into sharp focus at this point.
Several of the checkpoints that have to be in a position to ensure that your company will flourish in this highly competitive industry include good branding, an excellent CBD marketing strategy, as well as product placement, among other things.
Challenge #3: Challenge Is A Matter Of Brand Fit
CBD products have evolved into a type of panacea, making it more challenging for any new business entering a marketplace to determine where it should have been positioned in the marketplace.
Should you put your efforts into resolving pain issues? Or maybe it’s depression? Should you pursue a career in the pet or food industry? Making sure your CBD business is a good fit for the market is essential to correctly position it.
The majority of brands are unable to evaluate their brand fit. This is something you can witness for yourself. Take, for example, Purekana, Nuleaf Naturals, or Plus CBD Oil, all of which are well-known businesses that receive a significant amount of online traffic. None of the other brands has a distinguishing viewpoint or brand objective that makes them stand out from the crowd. They all sell things that are essentially the same and do little to differentiate themselves in order to attract new customers.
In order for your CBD marketing plan to be successful, it must stand out from the crowd. Brand distinctiveness is critical. CBD has a wide range of health advantages that are hard to categorize. The market should operate in the same manner.
Positioning your brand that is appealing to your target clients is critical. Improve the suitability of your brand and items to their tastes, address their problems, and correspond with their personalities.
Challenge #4: Identifying And Reaching The Appropriate Audience
From one state to another, the legal position of CBD products differs widely. CBD customers come from a diverse range of socioeconomic backgrounds, nationalities, and age groupings. As a result, if you don’t have responses to the relevant questions from the beginning, building the appropriate targeting approach can be difficult.
Which age category should you be focusing on? Who do you envision as your typical customer? Who is your target audience, and what symptoms or ailments are they attempting to alleviate? What drives each sort of buyer when it comes to purchasing CBD oil?
The following are some of the most important questions you should ask yourself before establishing your brand and developing your CBD marketing plan. For example, if you decide to sell to both the vaping community as well as arthritis sufferers, how would you manage to bridge the gap between the two groups?
More importantly, when deciding on the best targeting strategy, you must take your competitors into consideration. Keep in mind that several of your competitors may not be CBD enthusiasts. Some of them may be able to provide prescription medications as well as natural therapies. What do you think your chances are of winning against both categories of target competitors?
Challenge #5: Laws That Are Conflicting And Ambiguous
No one can deny that the rules governing the sale of Cannabis products at the municipal, state, federal, and global levels are challenging to navigate. They are also sometimes contradictory, making it difficult to know where to begin. As a result, CBD brands are viewed as high-risk businesses by banks, lenders, and other potential partners.
Obviously, this makes it difficult for CBD companies to collaborate with advertising agencies, financiers, and consulting organizations.