Hemp and CBD (Cannabidiol) Ingredient Markets: The Biggest Concerns and Challenges

Few industries have been as explosive and expansive as the CBD industry. Even conservative estimates place it as one of the fastest-growing markets in the United States, and few countries in the entire world are bereft of at least some kind of market for CBD and hemp products. As a result of the tremendous growth of the sector, CBD and hemp markets are often fiercely competitive. Wherever an entrepreneur attempts to lay claim, there are likely to be thousands of competitors looking to latch onto the same paying pool of ready consumers.

This means a few things for the hopeful CBD ingredient business. For one, it means that a strategic business plan and a stellar team is a must. But more importantly, the healthy competition and increased public scrutiny of a saturated market necessity that companies need to put their best foot forward when it comes to the creation of both their product and their brand. While some companies might be founded on the callous idea that an exciting idea is all it takes to succeed, standing out in a product-heavy market like CBD and hemp ingredients requires a truly exciting and technically proficient product.

This guide will outline some of the main concerns for companies attempting to specialize in creating the perfect CBD/hemp ingredients for their edible, smokable, and rubbing products. While it may serve as an interesting resource, nothing in this guide should be construed as definitive business advice.

Extraction Techniques

First, brands specializing in CBD edible products need to decide the method they will use to extract the CBD chemical to put into their products. Generally, there are two options. First, a broad spectrum extraction results in the cannabidiol (CBD) being mixed in with a variety of other chemicals, including flavonoids. This can be a very good thing—some brands pride themselves on this ‘melting pot’ of chemicals, some of which can be exceedingly beneficial for a number of conditions.

But other companies are looking for a more refined, pure CBD. If this is the goal, then isolate extracts might be the wisest choice. When CBD is extracted using the isolation method, consumers are given a CBD which is typically 97-99% pure CBD. For a consumer-base which is most interested in the health benefits of the CBD compound specifically, isolate extracts might be the best choice—it certainly is purer than its ‘melting pot’ friend.

One potential issue with the full or broad spectrum title is the inconsistency of the term. Experts repeatedly explain that ‘full spectrum’ does not mean that the product contains all of the 100+ unique compounds found in the hemp plant. From company to company, the exact melting pot of compounds found in this method of extraction can vary significantly. Companies are typically interested in a specific set of chemicals—but extracting these limited compounds can be a difficult process, too.

Establishing Uniqueness

To succeed in the highly-competitive and versatile CBD edible market, companies must do what they can to create a space for consumers to flock to their product. If sixty of the same exact type of CBD are being sold, things might not look so hot for the new company trying to break into the market. But not every organization can offer an entirely innovative product. As a consequence, companies use a number of strategies to stand out and put their product above the rest.

For some organizations, the success comes from versatility. Hemp edible company OLEO’s leaders expanded on the idea, one professional remarking that their products can be used effectively in “any kind of supplement,” in addition to the “liquid beverages and dried bars” that it is typically packaged in. This kind of versatility applies a model often found in the traditional food market to the growing CBD edible industry. By diversifying the type of edible products that can contain high quality, pure CBD, companies are able to expand their appeal to a wider range of audience members.

Analysts continue to project that the CBD food market will become a massive one. Only time can tell how it might shape and grow as its influencers learn the new tools of the trade. But one thing is for certain: the competition forged by the saturated market has created a host of worthy opponents, all battling to make their products and brands stand out from the pack.