We’ve all heard about the CBD industry’s explosive growth. And for good reason: BDS Analytics projects the retail CBD market to generate more than $15 billion by 2025, more than a sevenfold increase from 2019’s projected total.

Even if you don’t live in a state where CBD products sit next to shampoo bottles at the grocery store, this is the perfect time to think about how the CBD market’s explosive growth can benefit you. 

It might be getting late to start a CBD company from scratch. Avid Hemp, for example, has already invested heavily in the equipment used to extract, test, and package CBD products, and has been amortizing those investments for years. And the relationships they’ve formed with everyone from hemp farmers to retail consumers are even more difficult for a new company to replicate. 

But there’s still room for startup companies to develop their own CBD business. And the time has never been better for existing companies to add CBD products to their offerings. All it takes is a good business plan, some serious marketing, and a deal with an established CBD producer to deliver white-label or private-label products.

What are Private-Label CBD Products?

When retail companies want to sell their own products, under their own names and with their own packaging, but don’t want to own the entire production chain, they buy products at wholesale from manufacturers. A company wishing to sell its own line of CBD products, for instance, would buy them from an established business like Organics Fulfillment but brand them under a different name for retail sale. 

What’s the Difference Between Private-Label and White-Label CBD Products?

White-label products are manufactured in large quantities and sold unbranded to retailers who then apply their own labeling, branding, and packaging. 

Private-label products are labeled, branded, and packaged before being sent from the manufacturer to the retailer. This often requires a longer manufacturing stage than the white-label approach, but it means that items arrive from the manufacturer ready to sell, which can speed things up overall. 

How Private-Label CBD Products Can Help New Businesses

Private-label manufacturing significantly lowers the barriers for entry into the retail CBD market. CBD startups can now price the entire production process into their business plans and focus their attentions squarely on marketing and sales. Companies that plan to sell online can get started with just one or two employees and a moderate upfront investment.

How Private-Label CBD Products Can Help Existing Businesses

Companies with established retail lines can use private-label products to quickly and seamlessly expand into new markets. For businesses that focus on value to their customers, private-label CBD products can be excellent high-volume/low-margin additions to their lines. Businesses that serve luxury markets can apply their marketing know-how to selling at higher margins, safe in the knowledge that wholesale items produced by a top-end manufacturer like Organics Fulfillment meet their customers’ expectations.