CBD has hit the mainstream. The New York Times is publishing feature articles about it, celebrities endorse it, and perhaps most importantly, investors are taking CBD seriously: investment bank Cowen & Co. recently projected the worldwide CBD market to be worth $16 billion by 2025, up from $5 billion this year. And that’s among the more conservative estimates.

Plenty of companies are already selling CBD products and turning profits. They’ve invested in equipment and relationships, and fine-tuned their production lines and marketing strategies. That kind of source-to-retail investment can be all but impossible for startups to duplicate.

Fortunately, they don’t have to, thanks to private-label CBD manufacturers.

What are Private-Label CBD Products?

Private-label CBD products are manufactured by established CBD companies like Organics Fulfillment, then packaged and branded to each customer’s specifications. Organics Fulfillment can even help startups design logos and packaging graphics. This approach outsources the entire production line and takes any company straight to the retail stage in one of the economy’s fastest-growing markets.

Of course, details matter when choosing a private-label manufacturer. The regulatory climate for CBD products is much more forgiving than that for THC, the psychoactive chemical in hemp, and Organics Fulfillment guarantees that no THC enters its products. With that out of the way, the most important decision is what product(s) to sell.

CBD can be sold as an oil, in a refinement of its raw form, but its greatest retail potential is realized when its pain- and stress-relieving properties are added to common household items. For most companies—from startups to established retailers looking to serve a growing market—skincare products are the best way to get started selling CBD.

Why Start with Skincare Products?

The global skincare market is expected to top $140 billion in 2019, according to Grand View Research. With so many brands working so hard to differentiate themselves from the competition, skincare products containing CBD have the twin advantage of providing a distinct and increasingly popular alternative in a gigantic and steadily growing market.

Most major skincare brands still haven’t caught on to CBD’s allure. That hesitancy has opened up the skincare market to newcomers with the vision to recognize opportunity, the determination to set themselves truly apart, and the marketing chops to make that differentiation pay off.

For existing companies that already offer skincare products, that amounts to easy integration with existing lines. Everything in an established company’s catalog, from lip balm to exotically formulated moisturizers and exfoliants, can have a CBD-infused complement. Organics Fulfillment makes that addition simple, seamless, and profitable.

For startups, private-label CBD products offer a chance to tap a dynamic market and to expand over time. Touting the moisturizing qualities of your skincare products, or the purity of their herbal components, puts you in an uncomfortable amount of company, in a saturated field. CBD is a true differentiator: its relative novelty means that more and more first-time users try CBD-infused skincare products every day, which levels the playing field quite a bit between established skincare companies and startups. 

Speaking of competition, other companies can contract with private-label manufacturers, too. After establishing a presence in the CBD market, many Organics Fulfillment clients work with the manufacturer to develop unique formulations that allow greater marketing segmentation, bolder advertising, and higher margins. You might not be ready just yet for a full round of design, prototyping, and product testing. But Organics Fulfillment is, and they’ll be ready when you are.