Contents

What is CBD Business.................................................................................................................................2

Most popular types of CBD on the market.............................................................................................2
How to start a CBD business...................................................................................................................3
Market Research and Trends..................................................................................................................5
Sales and End Use Type Insight...........................................................................................................6
Source Type Insights...........................................................................................................................6
Key Companies & Market Share Insights...........................................................................................8
Global Cannabidiol Market Segmentation.........................................................................................8
Competitor Analysis................................................................................................................................9
SWOT Analysis......................................................................................................................................12
What is CBD Business

CBD (cannabidiol) business refers to the industry involved in the production, sale, and distribution of
products that contain CBD, which is a compound derived from the cannabis plant. CBD has gained
significant popularity in recent years due to its potential therapeutic properties and is often used in
various wellness and health products.

Some common CBD products in the market include CBD oil, tinctures, capsules, edibles, creams, and
even beverages. Starting a CBD business typically involves sourcing CBD from hemp plants (as hemp-
derived CBD is legal in many places) or cannabis plants (in regions where cannabis is legalized),
extracting the CBD, and then formulating it into various products.

It's crucial for CBD businesses to comply with relevant regulations and quality standards, as the industry
can be subject to strict oversight, depending on the jurisdiction.

CBD businesses need to consider factors like sourcing, product development, marketing, legal
compliance, and distribution. Additionally, as the industry is evolving rapidly, staying informed about
changing regulations and consumer trends is essential for success in the CBD business.

 Cannabidiol (CBD), a compound found in hemp and cannabis plants, is becoming increasingly
popular as a dietary supplement.
 The CBD industry is projected to hit $20 billion in sales by 2024.
 Hemp and hemp CBD are federally legal following the signing of the 2018 Farm Bill.
 The industry still faces challenges in advertising, banking and insurance.

Most popular types of CBD on the market

 Sublingual tinctures: A sublingual tincture is CBD oil that generally comes in a small bottle with a
dropper. Sublingual products are ingested by placing them under your tongue and allowing the
oil to absorb.

 CBD edibles: CBD edibles are a rapidly growing sector of the industry, including baked goods,
candies and foods. CBD edibles have faced significant regulatory scrutiny from the U.S. Food and
Drug Administration (FDA) but remain as commonly found products.

 Vape concentrates: Vaporizer concentrates, such as CBD oils and waxes, are another common
product. These can be used with an electronic device to vaporize and inhale the CBD product.

 CBD topicals: CBD topicals include gels, creams and sprays for aches and pains. These products
are placed directly on the skin to target a localized region of the body.
  Capsules and pills: Many patients who experience seizures or digestive issues take CBD capsules
or pills to treat their conditions.

How to start a CBD business

Starting a CBD (cannabidiol) business can be a promising venture, but it's essential to navigate the
complex legal and regulatory landscape carefully. Here are the steps to get started:

1. Research and Education:

 Understand the CBD industry, including the different types of CBD products available
(e.g., oils, edibles, topicals). (Already discuss above)

 Familiarize yourself with the legal and regulatory requirements at the federal, state, and
local levels. CBD laws can vary widely, so it's crucial to stay compliant.

2. Business Plan:
 Create a comprehensive business plan that outlines your goals, target market, product
offerings, pricing strategy, and financial projections.

 Identify your unique selling points (USPs) and how you plan to differentiate your CBD
business from competitors.

3. Legal Compliance:
 Register your business with the appropriate state and local authorities and obtain any
necessary permits or licenses.

 Consult with an attorney experienced in cannabis and CBD law to ensure compliance
with federal, state, and local regulations.

4. Supplier and Product Sourcing:

 Find reputable CBD suppliers or manufacturers that provide high-quality products with
third-party lab testing to verify the quality and potency of the CBD.

 Ensure that your suppliers comply with all legal and safety standards.

5. Product Development and Branding:

 Create your own brand identity and packaging. Quality branding can help your products
stand out in a competitive market.

 Develop a range of CBD products based on market research and consumer preferences.

6. Website and Online Presence:

 Build an e-commerce website to showcase your products and allow customers to make
purchases online.
  Use social media and other online marketing strategies to promote your brand and
products. (Already discuss the cost you will bear in last project)

7. Payment Processing:
 Due to the industry's high-risk nature, securing a reliable payment processor can be
challenging. Research payment processing options that cater to CBD businesses.

8. Inventory Management:
 Implement a system for tracking and managing your CBD inventory to ensure you have
enough stock to meet customer demand.

9. Marketing and Advertising:

 Develop a marketing strategy to reach your target audience. Utilize digital marketing,
content marketing, and influencer partnerships.

 Be mindful of advertising regulations specific to CBD products, as they can be stringent.

10. Customer Service:

 Provide excellent customer service, including addressing customer inquiries, concerns,
and issues promptly.

 Consider offering educational resources about CBD to help customers make informed
choices.

11. Track Finances:

 Keep meticulous financial records to monitor your expenses, revenue, and profitability.

 Consider hiring an accountant or using accounting software to manage your finances

effectively.

12. Scaling and Growth:

 As your CBD business grows, consider expanding your product line, distribution
channels, or even opening physical retail locations if feasible.

13. Stay Informed:

 Continuously monitor changes in CBD laws and regulations at the federal, state, and
local levels to remain compliant.

Starting a CBD business can be rewarding, but it's essential to approach it with caution and diligence due
to the complex legal and regulatory environment. Consulting with professionals who understand the
CBD industry and its legal requirements can significantly benefit your business.
Market Research and Trends

The global cannabidiol (CBD) market size was valued at USD 6.4 billion in 2022 and is expected to grow
at a compound annual growth rate (CAGR) of 16.2% from 2023 to 2030. The growing interest in the
potential health benefits of cannabidiol has led to increased investment in research and development to
understand its effects better and develop new products.

The market is expected to grow with the increasing legalization of hemp-based products. Companies are
developing a variety of cannabidiol products, including edibles, topicals, and beverages, to meet the
demand from consumers. The rise of e-commerce has allowed companies to reach a wider audience and
increase sales through online channels.

The market is becoming more competitive, with a growing number of new companies offering similar
products. The growing recognition of the therapeutic benefits of cannabidiol has driven consumers to
purchase these products, even if they are expensive.

As a result, commercial retailers are now focusing on selling cannabis-based items, which have a higher
profit margin. Many health and wellness stores, such as Walgreens Boots Alliance, CVS Health, and Rite
Aid, now offer CBD-based products.
CBD is a non-psychoactive compound found in the hemp plant and is used in various forms, such as
cream, edibles, oils, and tinctures. It is marketed for its potential health benefits, such as reducing
anxiety and pain.

Sales and End Use Type Insight

The B2B segment dominated the market and accounted for a revenue share of 54.7% in 2022. The
segment will have substantial growth over the forecast period owing to a rise in the number of
wholesalers offering CBD oil and the growing demand for CBD oil as a raw material.

In addition, the legalization of CBD products in various countries has opened up more opportunities for
supplying these products due to the expanding consumer base. The sub-segment of hospital pharmacies
within the B2C segment is expected to experience significant growth over the forecast period.

In B2B end-use, the pharmaceuticals segment accounted for a revenue share of over 73.5% in 2022. The
segment is expected to see substantial growth over the forecast period.

The growing number of clinical trials to assess the effects of CBD on various health conditions is likely to
fuel demand for these products in the coming years. In addition, many companies purchase bulk CBD oil
and produce CBD-infused products that are widely used by consumers as an alternative for managing
pain and stress.

Source Type Insights

In 2022, the hemp segment dominated the global market and accounted for the largest share of 54.5%
of the total revenue.

This segment is expected to grow further at the fastest rate during the forecast period on account of the
rising product demand from the pharmaceutical industry and growing consumer awareness about its
health benefits.

Moreover, legalizing medicinal cannabis and increasing consumer disposable income levels are expected
to boost the demand for CBD in the pharmaceutical sector.

High demand for CBD products, such as oils, tinctures, concentrates, capsules, topical solutions like
salves, lip balms, lotions, and edibles like baked goods, coffee, chocolate, gum, and candies, will boost
the market growth.

Furthermore, there is a wide application scope for CBD derived from hemp because of its ability to fight
inflammation and aging as it acts as an antioxidant.

Various industries, such as pharmaceuticals, personal care products, nutraceuticals, and food &
beverage, are creating products that use CBD for health and wellness purposes. Due to these factors,
the segment is expected to experience significant growth in the near future.
Regional Insights
In 2022, North America dominated the market with a revenue share of 87.7% and will retain its leading
position throughout the forecast period.

North America is expected to experience significant growth in the global market due to several factors,
such as a large number of health-conscious individuals, growing acceptance of CBD products, the
presence of major manufacturers, and approval of the U.S. Farm Bill in 2020.

The region is considered the most advanced in cannabis and its products, including CBD, with the
highest number of CBD companies and lenient laws regarding the use of CBD products.

The Europe and Asia Pacific regions are also expected to experience substantial growth in the forecast
period due to the establishment of hemp production facilities, particularly in China. China is the leading
hemp grower in Asia, producing nearly half of the world's hemp.

It exports around 90% of its products to the U.S., Germany, the UK, the Netherlands, and Japan and has
started growing hemp in three provinces for CBD extraction purposes.

The new government policies supporting the industry, low CBD production costs, and unique large-scale
manufacturing infrastructure & expertise are anticipated to create intense competition for hemp
companies in the U.S., Canada, and the European Union with low-cost CBD supplies.
Key Companies & Market Share Insights
The market is growing rapidly due to rising product demand due to its health benefits without
intoxication. There is intense competition among companies as they aim to increase their product
offerings, reach new markets, and attract more customers.

The market is highly fragmented due to the presence of many players. Companies are continuously
launching new and innovative products and expanding their reach in different regions to maintain their
industry position. In addition, companies are forming partnerships to expand their distribution networks
and customer base.
Nano Hydrate introduced its cutting-edge technologies-based marketing services in January 2021 to
promote natural treatment with pharmaceutical-grade CBD branding services. The company wanted to
start a partnership to bring well-known brands into the niche market for CBD products and expand the
market for drinks infused with cannabis.

The competition in the industry is anticipated to intensify over the forecast period due to rising global
demand for CBD-infused products. Some of the prominent players in the global cannabidiol market
include:
 ENDOCA
 Cannoid, LLC
 Medical Marijuana, Inc.
 Folium Biosciences
 Elixinol
 NuLeaf Naturals, LLC
 Isodiol International, Inc.
 Pharmahemp d.o.o.

Global Cannabidiol Market Segmentation

This report forecasts revenue growth and provides an analysis of the latest trends in each of the sub-
segments from 2018 to 2030. For this report, Grand View Research has segmented the global
cannabidiol market report based on source type, sales type, end-use, and region:
Competitor Analysis

Medterra takes pride in providing our customers with the highest quality pure ingredients, grown and
processed in the USA.

Geography & Country Targeting

Which countries sent the most traffic to medterracbd.com lately? Where is their core audience from?
Last month United States was the top country
sending desktop traffic to medterracbd.com
Audience Demographics

Audience composition can reveal a site's current market share across various audiences.
medterracbd.com's audience is 40.24% male and 59.76% female. The largest age group of visitors are 55
- 64 year olds.

Top Marketing Channels

The top traffic source to medterracbd.com is direct traffic, driving 49.65% of desktop visits last month,
and Display is the 2nd with 21.68% of traffic. The most underutilized channel is Paid Search. Drill down
into the main traffic drivers in each channel below
Social Media Traffic

Most of its social media traffic from Facebook, followed by LinkedIn and Tiktok (Desktop). Engaging
audiences through Tiktok may reveal new opportunities
This is our one of the competitor we must consider before starting. What there marketing strategies,
from which sources they got most of the traffic. How they are using social media marketing. They not
only rely on organic traffic but also depends on paid advertising.

SWOT Analysis
SWOT Analysis stands for strength, weakness, opportunities, and threats. You should consider these
factors before starting a business.

Strengths (Internal) Weaknesses (Internal)

1. Growing CBD Market: CBD is gaining popularity in Italy 1. Regulatory Complexity: Strict regulations
due to increasing health-conscious consumers. and licensing requirements for CBD products.

2. Quality Products: Opportunity to offer high-quality 2. Limited Banking Options: Difficulty in

CBD products sourced from local hemp farms or finding reliable payment processing solutions
reputable suppliers. due to industry risk.

3. Health and Wellness Trend: CBD fits into the broader 3. Limited Product Range: Initial challenges in
trend of health and wellness, attracting a health- diversifying product offerings.
conscious customer base.

4. Experienced in Agriculture: Italy has a strong tradition 4. Competition: Increasing competition in the
of agriculture, including hemp cultivation, providing CBD market with both local and international
potential sourcing advantages. players.

5. Favorable Climate: Italy's climate can support hemp 5. Brand Recognition: Building brand
cultivation, potentially reducing sourcing costs. recognition and trust in a competitive market.

Opportunities (External) Threats (External)

1. Regulatory Changes: Potential for more favorable 1. Regulatory Changes: Unpredictable

regulations in the future, easing market entry and regulatory shifts that could adversely affect the
expansion. business.

2. Export Potential: Access to the European CBD 2. Legal Compliance Costs: The cost of
market, enabling export opportunities. maintaining compliance with evolving
regulations.

3. Education and Awareness: Growing consumer 3. Economic Uncertainty: Economic challenges

awareness about CBD benefits creates a larger that may affect consumer spending on CBD
customer base. products.

4. Niche Markets: Identifying and catering to niche CBD 4. Supply Chain Disruptions: Dependence on
markets, such as pet CBD or specialty products. suppliers and potential disruptions in the
supply chain.

5. Health and Wellness Events: Participation in 5. Negative Public Perception: Negative media
wellness events and trade shows to showcase products coverage or public misconceptions about CBD.
and gain exposure.