Starting a White Label CBD Brand - This is what you need to know
With the passing of the 2018 Farm Bill, the cultivation of hemp was made legal across the U.S. at the end of last year. Under the new federal regulations, hemp can only be considered hemp and remain within the framework of the law if the plant's flowers contain less than 0.3% THC. The legalization of hemp cultivation opened the doors to the manufacturing of all kinds of products made from hemp-derived CBD. From gummies and pre-rolls to sports supplements and pet products, CBD is everywhere, and consumer spending, related specifically to the sales of CBD products, is expected to increase to $4.1 billion by 2022, according to a market research report by Arcview.
As a result, many are developing white label CBD brands. Retailers like Sephora, Saks Fifth Avenue, Walgreens, and Neiman Marcus are just some of the many companies featuring inhouse CBD product lines on their shelves. While crafting a line of white label CBD products or partnering up with an established brand may seem like a savvy business idea, there's a lot that must be taken into consideration in order to succeed.
Working with the right supplier
To craft and sell a reliable line of white label CBD products, the most pressing task is to find the right CBD supplier; one that can guarantee a high-quality base product. White label CBD oil products, derived from hemp, are what most consumer brands, retailers, and formulators, are interested in buying, because they come with the assurance of low THC levels and, in general, high quantities of CBD, allowing them to enter the general retail market at consumer level and merge with existing industries, including skincare, beauty, wellness, fitness, and to some extent food and beverage. Therefore, it's a good idea to narrow down your initial CBD supplier search to hemp farmers and hemp oil suppliers located within the United States.
When researching CBD suppliers doing your due diligence is of the utmost importance. Ask the supplier to explain the lengths they go to, and the measures they have in place to guarantee consistency. The end consumer expects that brands can ensure the same high-quality product on every store shelf. This means, as intermediaries, CBD white label companies must be able to offer the same. It's for this reason that, when looking to start a CBD white label company, it's a very good idea to work with a hemp-derived CBD supplier that operates within a vertically-integrated business model. From seed to cultivation, and from harvest to extraction, vertically-integrated CBD suppliers, like Point3 Farma, offer businesses peace of mind, as all of our products are fully traceable. It's a business model that guarantees an increased control over the quality and consistency of the end product at every stage along the supply chain. Vertically-integrated companies, like ours, are also managed by highly experienced teams who offer specific industry expertise at every stage of the process.
It's also worth bearing in mind that CBD white label manufacturers who are interested in targeting big business like, Sephora, Saks Fifth Avenue, and Walgreens, need a supplier who can deal with large scale orders without compromising on the quality of the hemp they cultivate and use to source their extractions. At Point3 Farma, we offer a wide variety of products from proprietary seeds and biomass, to different varieties of oils, including distillates, isolates, full-spectrums, and CBD-rich oils, because we understand the need for variety, but also because we have the organizational structures in place to be able to offer this complete range.
Developing products that consumers crave
Being on top of current industry trends is key for any company in any market, but in such a fast-paced industry, like CBD, it is even more crucial. Competition is fierce, brands are rolling out innovative products every day. Manufacturing a brand that drives consumer demand is no easy feat, so where do you start?
A good place to start is to think about which established industry your white label CBD product could successfully target. For example, would you be interested in developing a CBD cosmetics white label company, or would you prefer to delve deeper into the opportunities available related to high-end CBD skincare lines?
All white label CBD companies need to make decisions about the product categories they will offer. Much of this will depend on your team's formulating skills, but a fair amount will come down to market preference. CBD salves, balms, and creams need to be mixed with other compounds, including essential oils. Tinctures and gel capsules are two other alternatives. Opportunities exist fo white label CBD companies that want to source large quantities of hemp biomass and produce premium hemp-derived CBD-rich pre-rolls for consumer brands.
Study the current climate. Be confident in your knowledge of which type of CBD Products are the ones that most Americans are interested in. Find out who the dominant CBD consumers are, so that you can develop a clear idea of what the CBD industry looks like and where the opportunities lie.
Figuring out how to deal with regulations
The difficulties of breaking into a new industry always relate to finding your way through the myriad of new regulations. A CBD white label company needs to not only be aware of the current consumer trends, but also of changing government and regulatory authority decisions as related to hemp, cannabis, and to the use of CBD. The market is highly competitive and each U.S. state offers different business opportunities for new CBD white label manufacturers.
As an example, CBD-infused drinks have been prohibited in Maine, but the regulations in California are unclear when it comes to CBD-infused edibles. The authorized levels of THC in hemp-derived products also change depending on the state you operate in. Kansas, for example, insists that all products manufactured using hemp must contain 0% THC, and not the federally-legalized 0.3% or less.
A license to operate, the appropriate certification when manufacturing food, beverages, or beauty products, insurance, health inspections, chemical, and microbiology testing, and the working conditions offered to those on your team, are some of the many industry regulations that new CBD white label companies will need to digest before launch.
In short, diverse and challenging regulations, as well as dynamic consumer trends, are some of the industry variables that CBD white label companies will need to take into consideration. However, success is possible when you can guarantee high quality products, every single time. This is why it's so important to partner up with an expert CBD supplier that knows the industry inside and out.
Point3 Farma is a vertically-integrated company with a 1700 acre farm in Colorado, which includes a major extraction and processing facility onsite. As a large-scale supplier of CBD distillate and isolate to major producers of CBD-based consumer products, we are eager to welcome new customers into this exciting industry and we're here to help support and guide you in any way we can.