Industrial Hemp Industry Is Projected To Grow 800% Over Next 3 Years

Industrial Hemp Industry Is Projected To Grow 800% Over Next 3 Years

CBD Company Expecting 800% Growth In Near Future

Cannabidiol (CBD) is a natural compound extracted from hemp. Unlike some of the plant’s other derivatives, it isn’t psychoactive. It does, however, have medical benefits that have been appreciated by both patients and researchers.

Ongoing research demonstrates that non-psychoactive CBD has therapeutic value for patients suffering from a host of different conditions. These include arthritis, anxiety, insomnia, chronic pain, and more. CBD seems poised to become a mainstream over-the-counter remedy. Within a year, it will likely appear on the shelves of local drugstores right next to Tylenol and sleeping pills.

As noted above, cannabidiol is an extract taken from the cannabis or hemp plant. In contrast to the THC compound which gives marijuana its recreational appeal, CBD does not produce a high. This makes CBD far more appealing for medical use. CBD can be extracted from both marijuana and industrial hemp plants.

The Hemp Business Journal estimates that the CBD market will be worth $2.1 billion in sales by 2020. Of that total, $450 million is projected to come from hemp-based products. This represents a 700 percent increase over the course of five years. Sales of hemp-based CBD products totaled $90 million in 2015; this is compared to $112 million in sales of marijuana-derived CBD products. (These latter products were sold through dispensaries.) The industry as a whole is experiencing massive growth, with the most optimistic projections predicting as much as $4 billion in revenue in the near future.

The federal government’s stance on CBD remains largely ambiguous. There is no clear path for regulating or restricting CBD products. CBD is not specifically addressed by the Controlled Substances Act (CSA). The Drug Enforcement Agency formerly attempted to treat CBD products as controlled substances that fall under Schedule 1 of the CSA, but enforcement and prosecution have been problematic. In a 2003 lawsuit against the Hemp Association, the DEA’s position suffered a significant blow when the agency lost the suit. The Industrial Hemp Farming Act of 2014 further muddied the waters by specifically excluding hemp and hemp-based CBD products from the Controlled Substances Act. This has produced a nationwide market for hemp-based CBD products that producers and sellers believe are not restricted by any laws.

The ambiguous but bright future of the CBD industry makes it a very attractive sector for both investors and entrepreneurs. The existence of custom manufacturers like Nutrafuels makes it particularly easy for entrepreneurs to enter the market and start selling their own products. The dramatic market growth anticipated in the next few years, in turn, creates a vibrant field for CBD investment opportunities.

Contract Manufacturing Versus Private Label Manufacturing

Private label manufacturing is a budget-conscious option that is perfect for entrepreneurs with limited funds available. In a private label arrangement, you receive full control over your product’s labeling but are obliged to choose from the manufacturer’s stock formulations and containers. This is the faster, cheaper way to get your products into the market.

Contract manufacturing gives you far more control over the contents and appearance of your products. You can specify custom formulations and exercise complete control over the appearance of labels, containers, and tops. Contract manufacturing is an effective investment in making your brand truly unique and standing out in the marketplace.

Step-By-Step CBD Entrepreneurship

1) Research the market and select a product
2) Identify a reliable manufacturer
3) Design your brand and packaging
4) Build an attractive listing
5) Contract with a fulfillment provider to handle product shipping
6) Produce a complete marketing plan prior to your product launch
7) Start making sales

Despite its bright prospects, the CBD oil industry is currently short on companies offering private label and contract manufacturing services. Nutrafeuls, a publicly traded company, is one of the only organizations offering entrepreneurs such resources at the present time.

More About Nutrafuels

Nutrafuels (Traded OTC as NTFU) is a leading manufacturer of CBD products serving both US and international markets. The company is headquartered in Coconut Creek, Florida. Nutrafuels is one of the world’s largest CBD manufacturing companies.

Nutrafuels’ primary focus is the production and distribution of CBD products. The company sells throughout the US and also internationally. Nutrafuels produces both stock and custom formulations for retail sale. Nutrafuels currently maintains multiple manufacturing partnerships with companies including Hempgenix, NF Skin, and Hall Global.