The CBD industry is booming. This is a new gold rush for many brands and investors. Legal now on a national level, CBD products and industry is growing at a rapid speed. The CBD market is predicted to grow by $29.91 billion during 2021-2025, progressing at a CAGR of 26.93% during the forecast period. This rapid growth rate is hard to match. Selling CBD products online through e-commerce successfully is a lucrative business nowadays. Most of the products are sold online even through you can find CBD products in many brick and mortar retailers.
Cannabidiol (CBD) is often covered in the media, and you may see it touted as an add-in booster to your post-workout smoothie or morning coffee. You can even buy CBD-infused beverages and even beer. But what exactly is CBD? And why is it so popular these days?
What Is CBD?
CBD, or cannabidiol, is the second most prevalent active ingredient in cannabis (marijuana). While CBD is an essential component of medical marijuana, it is derived directly from the hemp plant, a sort of cousin of marijuana, or manufactured in a laboratory. One of hundreds of components in marijuana, CBD does not cause a “high” by itself. CBD is readily obtainable in most parts of the United States, though its exact legal status has been in flux. All 50 states have laws legalizing CBD with varying degrees of restriction. In December 2015, the FDA eased the regulatory requirements to allow researchers to conduct CBD trials. In 2018, the Farm Bill made hemp legal in the United States.
What are CBD Products?
CBD products are any products containing CBD. CBD comes in many forms such as oils, extracts, patches, capsules, vapes, and topical creams for use on skin. An array of products can be purchased containing CBD such as candy, chocolates, soda, and so much more. From packaged products to fine meals and baked goods. CBD is mixed into many items these days. Retailers and brands work with established and licensed places to create the products. Then, the brands find distribution with brick-and-mortar retailers and online. Many are sold online through e-commerce websites. Selling CBD products online through e-commerce successfully is not easy. Investors must allocate marketing, advertising, and sales budgets.
Marketing, Advertising, and Selling CBD Products
Selling CBD products successfully involves marketing and advertising. Even though CBD products are in demand, the competition is extremely high for these types of products. The consumer is still being educated and learning about the products. This forces brands to educate the consumer base through content production. This includes lots of articles, visuals such as Infographics, and most importantly videos. Content marketing is a critical aspect of the CBD industry. Search marketing is just as important. Many go online and use search engines such as Google to find out about CBD products, benefits, and applications. Being found in search at that time is key for a brand selling CBD products. SEO services are search marketing services that enable a brand to be found in search results. A key marketing tactic for CBD brands. Quality websites are important as well. Trust is not established with consumers when displaying a poorly designed and developed website. This is especially true with e-commerce sites.
Marketing campaigns and strategies such as social media, Search Engine Optimization, Content Marketing, and others are an important part of growing CBD sales successfully. This includes advertising tactics, which are also referred too often as “paid advertising”. Advertising can be influencers, magazine ads, TV, radio, billboards, CPC (Cost Per Click) advertising with Google, Facebook, or other third-party sites, and so on. Advertising is also an important part of generating online sales for CBD products.
There is much to consider when entering or growing within the CBD industry. Expert marketers and business consultants work with brands to ensure better results. Retailers hire service providers for marketing and advertising, but also for sales support through consulting services. There are many professional services available to CBD companies wanting to successfully grow online sales and gain market share. Speak to an expert about your brand and business.