A Perspective On How To Make Money In An Oversaturated Cannabinoid Market

February 4, 2020

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The Cannabis Industry is projected to have a net worth of 32 billion dollars by 2022. This is potentially a staggeringly lucrative market for entrepreneurs and investors. Cannabis has seen a renaissance since the 2018 Hemp Farm bill legalized hemp farming and extracts in the United States at the Federal level. With this newfound lease, industries have begun to research and develop new ways to incorporate cannabis in products for increased revenue and decreased cost. Some examples of industries targeting cannabis are, big pharmaceuticals and medicine, banking and commerce or trade, agriculture, advertising, packaging, food and drink, and of course the huge health and wellness supplement market. [1]

Cannabinoids, or more technically phytocannabinoids, are naturally occurring molecules contained within cannabis sativa plants like hemp and marijuana. Hemp has a naturally high cannabidiol (CBD) count, in marijuana the same is true for tetrahydrocannabinol (THC). These plants are sourced for their cannabinoids depending on need, though THC is what makes marijuana still illegal in most states.

To say that the health and wellness market for cannabinoids is oversaturated is an understatement. In the U.S. CBD was a 600 million industry [2], with purported earnings of over 296 million in 2019 [3] via public trading. A simple internet search for CBD, or one of its various product forms like CBD oil or CBD edibles, will yield thousands of results for online e-commerce platforms and physical stores toting the “best” or “highest quality” CBD available.

So the question must be asked, what can I do to seperate myself from the rest of the cannabis industry if I am starting or have my own business, or looking to invest in one?

Cannabidiol Life offers perspective about one of the ways they continue to see success in the cannabinoid business, diversification. Staying ahead on market trends and new cannabinoid advancements is key. Cannabidiol Life sells hemp extracted cannabinoids in the form of CBD, CBG, CBN, and pending legalization plans to move into THC. They find this especially important in product categories that feel stale but are top sellers like CBD oil and CBD gummies.

Everyone sells products like cannabis gummies, make your e-commerce unique by offering what your competition doesn’t. Don’t just default to gummy bears. Change the product look and feel, how it tastes, and what it targets.

Gummies come in different shapes, colors, and flavor assortments.
Offer multiple uses for your gummies, for instance CBD gummies that specifically target a condition, like anxiety, through the addition of other natural extracts.
Have different versions of gummies, like those that contain no THC, are broad spectrum or full spectrum (terms that indicate extraction process and cannabinoid profiles present in the cannabis used).
Get specific certification nomenclature like Organic, GMP, Vegan, Gluten-free, etc.

The above strategies can really be applied to any form of cannabinoid product line, go wild!. Finding new forms of the cannabinoids themselves is also possible to help change up the formula, or provide a new twist that might stand your company out from the crowd. For instance CBN gummies, or THC gummies.

Cannabinol (CBN) has been around for quite some time. Some studies have shown CBN to potentially help increase appetite, [4] while others seem to suggest that CBN may perform as a sleep aid, especially if combined with THC. [5] THC is a the much more familiar cannabinoid because it is the aspect of marijuana that creates the euphoric “high,” and what is tested for on drug tests. In some States, THC is completely recreationally legal. If your business is lucky enough to be based in such a State, THC products are highly desirable, but very represented, you have to be unique in some way to grow.

So whether you are looking to invest in a cannabinoid company, or begin your own entrepreneurial venture, the takeaway is to look for diversity. Make careful investments into proven companies, with seasoned credentials. Ensure that they are adapting with innovation and legislation. If starting your own business, figure out how to make your products stand out. Competition is fierce, you will get lost in the noise.