Dropshipping Benefits, Challenges & Getting Started

There are many ways of starting your own CBD business, and dropshipping is one such way. One of the early decisions anyone must make is how and where to source products. One does not essentially need to manufacture CBD products. One can buy CBD wholesale, procure CBD isolate, distillate, and make products.

Even better, one can just buy private label CBD or white label CBD products. These business models require very little understanding of CBD products and only small investments.

For example, white label CBD is quite a simple way of getting started. One just needs to ask the CBD manufacturers about all the products available with them, select the products, and ask manufacturers to label and pack products as per the requirement, and that is it.

However, all the above models have one issue, they require buying some stock. For example, in private label CBD, one may need to buy at least one batch of every CBD product, which is a considerable investment. On the other hand, in the case of white label CBD, one can buy products in smaller amounts, but still, every CBD manufacturer would have a minimum order quantity (MOQ).

Pros and Cons of Dropshipping: An All-In-One Guide

So, what to do, or how to get started if one does not want to maintain any CBD stock?

Well, there is a way out. You can even start a CBD business without buying a single unit of CBD product or investing a penny in stocks. Dropshipping is the simplest way of getting started.

It is the only business model in which a person can have a massive range of products, and yet one would not need to buy any stock. One would not need any place for storage. Not only that, one is not even engaged in product supply. And, yet, consumers receive products as if they were produced and shipped by you.

dropshipping

What Is Dropshipping?

It is the only business model where one can get started with no product stock. The methods are pretty simple. There are dropshipping companies. These may be CBD manufacturers, supplement producers, or even trading companies (often offering thousands of products).

They provide the price of the CBD or other products available for dropshipping. Then, you promote, market, and sell those products like your own products or brands. Once you get the order, you forward it two the dropshipper, and they will supply the product along with your invoice.

Here the customer would make payment to you or at your website. Thus, you will need to pay the dropshipper the basic cost of the product and shipping expenses. What is left after paying the dropshipper is your profit.

This business differs significantly from affiliate marketing, though it may share some of its traits. For example, in affiliate marketing and dropshipping, you have no say in product manufacturing or quality.

However, unlike affiliate marketing, where the customer is redirected to the seller’s website, and you get a commission from every sale, dropshipping differs. In dropshipping, you sell products as if they are your products, and you decide what should be the final price of the product.

In dropshipping, you have greater control over product margins. Moreover, since you are not redirecting customers and selling products like your own products, you can develop customer loyalty over time.

However, unlike private or white labels, maintaining the stocks, storage, and shipping of the products is no hassle. The dropshipper handles everything, and you only pay for whatever sales you make via your platforms.

dropshipping benefits

Top Dropshipping Benefits

Dropshipping is not one of the most popular ways of doing business. In fact, most sellers on eBay and even many on Amazon are working this way. In addition, most sellers or resellers on these platforms are using the services of dropshipping companies. Below are some of the reasons why dropshipping is such a good business model:

  • Low start-up costs: This is the number one reason why anyone would consider dropshipping. No stock maintenance also means zero investment in product stock and storage. In the case of dropshipping, products are lying with the dropshipper, and you have no obligations. Basically, you only buy the product to be supplied after getting payment from the client.
  • Flexibility: This business model provides flexibility in many ways. You can get into the range of businesses, start selling different kinds of CBD products, and more. Since stocks are not with you, there are no pressures of selling them quickly to recover the investments.
  • Massive range of products: Your range of products is only limited by the number of products offered by dropshipper. Thus, most dropshipper would have tens, even hundreds of healthcare products. In addition, a dropshipper may offer not only CBD products but also many other health supplements. To get started, you must decide your margin and list those products on your website. After all, there are no obligations in dropshipping and no investments in product stock.

Other dropshipping benefits

  • No storage of products: In dropshipping, physical products always lie with the dropshipper, and they are also responsible for shipping the products. A good dropshipper would send your invoice along with the product so that customer has an impression as if you dispatched products. All this means there is no need to maintain a warehouse and stocks and requires less staff.
  • Minimal efforts in inventory management: In dropshipping, inventory lies with the dropshipper and not with you. However, you still need to do some inventory management. The number of products with dropshipper may keep changing, and prices may change from time to time. So, yes, you would still require to do some inventory management. However, these are minimal efforts. Moreover, man dropshipper would provide automation software that can readily integrate into most common eCommerce platforms.
  • Easy to scale up your business: Expanding product offerings is a considerable challenge in any business, but not with dropshipping. In the case of dropshipping, one can immediately start offering all the products that are with the dropshipper. Any dropshipper would have tens, hundreds, and even thousands of various products. Thus, one may start with CBD products but readily add other health supplements and even medical devices to the product profile.

 

Some Top Challenges Associated with Dropshipping

Dropshipping sounds too good to be true, and that is right. However, every business model has its downsides, and dropshipping is no exception. Here are a few of the downsides of this business model:

  • Reliance on the third party: One of the biggest issues with dropshipping is that one is over-dependent on the third party. Just imagine that you have spent much effort and money developing your platform. However, one-day dropshipper decides to change their working condition or even close their business.
  • Poor product branding: In dropshipping, you are selling products “as it is”. There is no control over how the products should look, what they must contain, and more. Dropshipper provides ready-to-sell products, but it also means no control over how the product is branded. Quite often, dropshipping products are a kind of product that has huge demand, but they would not offer niche products.
  • No control over product lifecycle: In dropshipping, you may sell the products as if they are your own. But the truth is that those are not your products, and you have no control over the product lifecycle. It means that if the dropshipper decides to change product packing, its formulation, or even discontinue the product, there is nothing you can do about it.

Additional dropshipping challenges

  • High competition: Since dropshipping does not require much investment, many people are using this model. Additionally, dropshipper offers products that are in high demand. However, such products are sold by so many other people. Therefore, you may struggle to differentiate your offering from the competition.
  • Low margins: Almost no product investment also means you will have to be satisfied with low product margins. Products offered by dropshipper are not niche products; thus, there is no scope for massive margins.
  • Low customer loyalty: Since you are offering products that are available on many other platforms, it also means low customer loyalty.
  • Difficulties in providing customer support: You are not supplying the products or maintaining stocks. It means that providing customer support would be challenging if anything goes wrong. Dropshipper may take longer to deliver products, and there might be issues in getting product replacements.

Is Dropshipping Worth It for My Business?

It is a complex question. Every business model is good in one way or another. And every business model has its pros and cons. Some business models may be better for you.

Generally, dropshipping is an excellent business model for getting started quickly with no prior experience selling CBD or other products. It is also a low-risk model. It is also an excellent way to expand the product portfolio quickly.

However, it may not be the perfect way of doing business in the long run. If your sales pick up and your online platform becomes popular, you will realize that you need better products or niche products and provide better customer services. Moreover, if sales pick up, you can make more profit by using models like private label CBD or white label CBD.

If you are unsure how to start with the CBD business, we can help you out. We are a European CBD manufacturer and also provide many other services. Contact us to learn more about dropshipping, private label CBD, white label CBD, and more.

 

CBD Market Analysis: Germany

If you are into the CBD business and still not working in Germany, it is a country that should be on your radar. Germany is attractive for numerous reasons.

Germany is the largest economy in the EU zone. Therefore, no surprise that it is also the biggest market for many products, including CBD.

Germany is also a highly dynamic market that is consistently among the first to accept new ideas. Thus, it is no surprise that it has also quickly changed its regulations and legalized CBD.

Even more interesting is that Germany is considering legalizing recreational cannabis, and its government has already taken some initial steps. Legalizing it would also become the largest recreational cannabis and CBD market in the EU zone.

Additionally, many people do not know that Germans prefer natural remedies. Compared to the US or UK, it is relatively easier to get regulatory approval for herbal remedies. All this means that German society more readily accepts natural preparations. Germans would often prefer something natural over pharmacological drugs.

These and many other factors make the German market truly attractive. Moreover, it has one of the best investment climates. It means that German laws generally remain consistent over time, and there are fewer chances of quick regulatory changes that may threaten CBD business or any kind of business.

cbd in germany

A Market Analysis of CBD in Germany

German CBD market is quite vibrant, with numerous CBD products available on the market. CBD products are sold at brick-and-mortar stores, online platforms, and more. One can readily buy CBD oil, gummies, creams, and balms.

Though the EU-wide changes in the regulations, that is, a classification of CBD as a Novel Food, have slowed down the CBD market growth a bit, it will regain momentum as companies start meeting the new regulatory requirements.

Like all other healthy and vibrant markets, the German market is expected to grow at a CAGR (compound annual growth rate) above 40%. Industry experts believe that by 2024, Germany will be 50% of the EU cannabis market.

First Off, Is CBD Legal in Germany?

Germany is an industrial nation, and hemp has many industrial uses. Therefore, no surprise that it is a country with a long history of hemp cultivation. It was among the first European nations to legalize hemp cultivation in 1996.

It also amended its laws regarding the sales of low THC cannabis products in 2017, and since then German CBD market has been booming.

So, yes, CBD is legal in Germany. One can sell any CBD product in Germany with THC content below 0.2%.

Further things changed in 2019, when the EU commission made some regulatory changes, thus classifying CBD as a Novel Food. Unfortunately, this means that one can only sell or commercialize CBD products in the German market after getting Novel Food approval from the EU commission.

Getting approval as a Novel Food from the EU commission may be a complex task, but it is worth it. Obtaining such approval means one can sell CBD products almost in any EU nation.

Can I Take CBD Oil to Germany?

Theoretically, yes, you can take CBD oil to Germany. However, there are a few things to know beforehand.

Firstly, one can only take small amounts of CBD oil for personal use. Thus, a bottle or two may be fine, as such a quantity is justifiable. However, larger amounts are almost impossible to justify.

Secondly, one should preferably take a product that is certified and known to contain THC below 0.2%. It is even better not to take THC-containing products at all. Thus, better take CBD isolate or similar products.

Additionally, it is worth understanding that what is legal in the US may not essentially be legal in Germany. For example, the upper limit for THC content in the US is 0.3%, while in Germany or the EU, it is 0.2%. Hence taking broad-spectrum or full-spectrum CBD oil with high THC to Germany may be illegal and get you in trouble.

Thus, it is always a good idea to take only CBD oil that is entirely THC-free, made from isolate, and certified to be THC free. In addition, it is generally safer to carry CBD products produced in another EU nation and sold legally in that nation.

When it comes to recreational cannabis, it is still illegal in Germany. However, the German government has already started legalizing the limited use of recreational cannabis. But these are still early days, and it may still take a few years before recreational cannabis becomes legal in Germany.

Germany’s CBD Oil Market Size

When it comes to the total CBD market in Germany, data is a bit sketchy. Hence, it is difficult to say how much is the total CBD market in Germany or the CBD oil market size.

Nevertheless, most data indicate that the total European market for CBD products is approximately 2 billion USD, and thus German market is around 1 billion USD strong. But, of course, this is the whole market, including CBD oil, edibles, topicals, and so on. Hence, it would be correct to say that the CBD oil market may be approximately 200-300 million USD.

cbd market break up germany

There are some surveys indicating what kind of products German people want. Studies show that people are most interested in CBD oil, followed by food, capsules, drinks, vapes, topicals, and herbals.

cbd demand in germany

The Top 3 CBD Manufacturers in Germany

By looking at the product profile of some of the leading CBD manufacturers in Germany, one can get a better picture of the German CBD market. Furthermore, looking at these manufacturers’ websites, one can understand what is in demand and what is not.

Below are the three highly reputed CBD manufacturers in Germany:

Nordic oil

It is a German manufacturer with a wide range of CBD products like CBD oil, pills, various CBD combination products like CBD with melatonin, and more. They produce high-quality products that go through extensive testing in third-party labs.

Sanity care

It is a company that focuses on producing CBD products of medicinal quality and thus supplying to pharmacies and institutions. In addition, they also make CBD-based wellness products and even topicals.

Breathe Organics

It is another German company with a wide range of CBD products, oils, cosmetics, liquids, and more. They produce liquids for vapes, cosmetics, CBD for ingestion, aromatic oils containing CBD, hemp oil for hair and massage, and more.

A Guide to The Emerging Trend of CBD Wax

CBD comes in tens of forms like gummies, oil, capsules, foods, vaping fluids, etc. What is amazing is that the forms in which CBD comes are increasing day by day. However, there is one problem with most CBD products. Whether they are gummies or oil, they have low CBD concentrations.

One of the biggest reasons people fail to experience some of the incredible health effects of CBD is its low dose intake. So, what could be the probable solution? It appears that one of the better ways to take CBD at higher dosages is using CBD wax.

Since more people experience the health effects of CBD after using its wax, its popularity is also rising. In just a few years, its demand has increased by multiple times. Now CBD waxed is among the most demanded CBD products.

CBD wax

What Is CBD Wax?

As already said that CBD wax is among the most potent products. It has a wax-like consistency due to higher CBD concentration and higher viscosity. Ideally, CBD wax must be a dry and easy-to-handle product.

Unlike CBD oil, which manufacturers produce by adding small amounts of CBD isolate or distillate to the carrier oil, CBD wax is a real thing. It may have lower purity than CBD oil made using isolate, but it has much more potency.

CBD, by nature, is a fat-soluble substance. Thus, when extracted using various methods, one gets a CBD resin as an intermediate product. One can either create purer isolate or some other products from here.

How To Make CBD Wax

CBD experts often describe wax as something that is quite comparable to CBD resin. Therefore, people may use it as a final product or intermediate to make other products from it. However, unlike CBD isolate, or distillate, it is less pure and may contain other cannabinoids and terpenes, which may be beneficial, though it may also cause more side effects.

Nevertheless, market data indicates that the popularity of wax is increasing. This is readily explained as people are looking for something more potent and a product that really works.

What Is CBD Crumble?

Crumble is just another kind of wax. Basically, CBD wax comes in different consistencies, with some thicker and butter-like, while others are less thick or even solid and may readily crumble. CBD is made by heating cannabis extract and using different air pressure settings. Some settings would produce CBD butter as an end product, while others a crumblier product.

CBD oil and crumble

How To Make CBD Crumble

Though CBD crumble is a type of CBD wax, it is more solid and less buttery, and it crumbles or breaks into small, uneven pieces. Therefore, consider it a drier form of CBD wax. Since it is drier, it may be easier to pack and carry than something that is buttery.

One can create CBD crumble by heating for longer and reducing the pressure to remove most of the moisture. This would produce CBD wax crumbles. Then, one can directly eat these crumbles, smoke them, or even add them to different food items.

Of course, to create a crumbly product, extra effort is needed. For example, one may need to circulate the resin multiple times through the closed loop system during extraction. In addition, the resin has to go through multiple cycles of cooling and heating. Finally, once the pure product is ready, one must place the final extract for about three days in a vacuum oven at higher temperatures to get a truly crumbly product.

CBD Crumble vs. CBD Wax: What’s The Difference?

It is one of the common questions. There is not much difference between CBD crumble and wax, and they are the same things. Crumble is just a bit drier and easier to use. Depending on the preparation temperature and air pressure, one may get live resin, crumble, budder, shatter, and more. As one can understand that the primary difference between them is consistency. Generally, drier forms like crumble are more potent.

How To Use CBD Wax & Crumble: Method & Effects

There are innumerable ways in which this high-potency product can be used, and thus imagination is the only limit. One can also use this product in some unique ways.

Thus, for example, one may use it when smoking an old-fashioned pipe. One may smoke it along with tobacco and even without much of it. Nevertheless, some tobacco would be needed to convert the wax into an inhalable vapor. Though it is not good to smoke, but smoking crumbles may be an option for those who smoke a pipe.

Another good way to use it is just eating these crumbles. One can eat them directly or add them to various foods. They are also quite good for adding to different baked items. However, eating pure crumbles is one of the ways for those wanting to experience the immediate effect of high-dose CBD.

To conclude, CBD wax and crumble are some of the crude and more potent forms of CBD. As a result, some find it easy to use CBD in these forms. However, it is worth understanding that creating CBD crumbles is quite a laborious process, and thus it may be relatively expensive.

Want to learn more about how CBD wax can help you expand your business? contact us.

CBD Dropshipping vs. Wholesale: What’s The Difference?

When thinking of starting a CBD business, many people wrongly believe that they would need to start with production. Manufacturing products and then marketing them is a primitive model of doing business. In modern times, some companies mainly specialize in manufacturing, while others mostly create brands and do marketing.

If you do not understand what we mean, just go, and check the list of Fortune 500 companies, and you will be surprised that some of the most expensive brands in the world have no in-house manufacturing. For example, Amazon to Apple have their brands and product range, but they do not own factories.

It means that manufacturing and selling are regarded as two separate specialties these days. This is unlike a century back when manufacturers did everything from making products to selling and providing post-sales services.

So, you want to start a CBD business? You do not need to think about manufacturing the products and not even about the logistics. Instead, you can solely focus on the selling.

Of course, many business models are possible, like getting a product manufactured under your brand name or just selling the brands of other companies.

Product wholesaling and dropshipping both means selling products made by some company. It also may mean that the brand name may not essentially belong to the seller. In both the models, one focuses just on selling the product and getting their margins. However, these models differ in logistics significantly.

CBD dropshipping

What Is CBD Dropshipping?

Dropshipping is one of the simplest models of getting started with any business. Moreover, it is one of the new ways of doing business, mainly made possible by the internet.

In this model, one does not need to hold any stock or supply the product. Instead, all one has to do is create some kind of online sales channel, which may be a dedicated website or even sales through platforms like Amazon.

There are many companies that provide products for dropshipping. Thus, all one has to do is get a list of CBD products, decide the pricing of the product and hence margin, add those products to the shop, and start selling. Once the person gets an order, the dropshipper, who holds the product stock for you and even ships that product to the client. A dropshipper may even pack products as per your requirement so that the client feels as if the product is coming directly from your warehouse.

As one can see, in this business model, the seller does not hold any stock and neither ships the product. The dropshipping agency does all these things as per pre-agreed terms. What is amazing is that the client can never know that product was not shipped from your shop, as dropshipper can even mention the name of your online store on the packaging.

This model is very different from affiliate marketing. Firstly, in dropshipping, you decide the product margin and pricing. Secondly, the buyer is not redirected to the seller’s website and places an order directly on your website. Thirdly, the product is dispatched on your order and often in a packing mentioning your company’s name.

How Can You Dropship CBD?

Dropshipping business is one of the easiest businesses to get started. It can help you get your feet wet in the CBD business without taking any significant financial risk. Thus, the first and most important thing you need to do is find a dropshipping company that can offer a range of CBD products.

After that, all you need to do is create your online store, and that is it. Theoretically, there are no more steps involved in starting this kind of business.

Of course, there are a few other things to know in practice, such as the quality of products, how fast the dropshipping company can ship the products, product replacement policies, confidentiality of the information, and other services like software for business automation, and more.

What Do We Mean by CBD Wholesale?

Wholesale is a relatively very old model of doing business. In this model, you buy finished products from the manufacturer. These products are ready to sell, and thus manufacturer provides all the documents and sometimes even advertising support like templates, packing material, and more.

However, you have to buy and hold the stock in this business model, which means some initial investment. Moreover, the product’s price would depend on how many products you buy from the wholesaler.

After getting the stock and relevant supporting documents, you can start selling the product on your online store. Quite like in dropshipping, the brand name here also belongs to the wholesaler. Nonetheless, you get to make a hefty margin on the product.

In wholesaling, products lie in your warehouse. Thus, the stock of the product is with you. Furthermore, it means that you carry out the product delivery after the order. Therefore, logistics from your warehouse to the end client are managed by you.

How To Buy CBD Oil Wholesale

There are many companies that offer their products at a really good or wholesale price. However, pricing is not the only factor. One should only buy products from companies with in-house production and quality control. It should also be a company that can provide legal and regulatory support.

Thus, essentiapura offers a range of products at wholesale pricing. An organization with tremendous experience in manufacturing herbal extract, equipment, and finished products. The company can help anyone get started with the CBD business.

CBD wholesale or dropshipping

What’s The Difference Between CBD Wholesale & Dropshipping?

The difference between the two business models is huge. Wholesale is about buying the stock, storing it in your dedicated warehouse, and then selling it to end consumers or other retailers. Additionally, some organizations provide an option of white-labeling. That is, they can supply products under your brand name.

However, in the case of dropshipping, you do not buy a product or maintain stock and do not even supply it to the buyers. In dropshipping, everything is handled by the dropshipping company. All you do is forward your order to the dropshipping company. From stock maintenance to logistics, everything is done by dropshipper.

Pros & Cons of CBD Wholesale for Your Business

Generally, wholesale is a better business model compared to dropshipping. This is because wholesale products have a lower price, which means greater margins for sellers. In addition, maintaining the stock and carrying out logistics means an ability to serve clients better and with greater confidence.

Additionally, one may also carry out product branding according to their liking. Thus, one has the freedom to create product packing, brand names, and more.

However, on the downsides, it means logistical hassles. Additionally, it means greater investment, as one needs to maintain a stock of each product. It also means more investments in infrastructure.

Pros of wholesale

  • Products always in stock
  • Better control over logistics or supply chain
  • Product branding
  • Ability to own the product brand name
  • Better business perspectives in the long run
  • Better post sales service to the client

Cons of wholesale

  • Higher initial investment, as need to buy the stock
  • Greater investment in infrastructure like storage facilities
  • Higher legal and legal responsibilities
  • Need to supply product to end consumers, and thus handling all the logistics by self

Pros & Cons of CBD Dropshipping For Your Business

Dropshipping is one of the simplest ways of starting any business. In this model, all one has to do is select a range of products and start selling. Rest is all handled by the dropshipper. However, it also means very little control over the business.

Pros of dropshipping

  • Most beginner friendly business model
  • No need to maintain stock or invest in the stock
  • All logistics from product storage to shipment to the buyers are handled by dropshipper
  • Minimal legal hassles, as it is a dropshipper who needs to get all product approvals

Cons of dropshipping

  • Very low margins or profitability and low pricing flexibility
  • No option for product branding
  • Little control over logistics and difficulty in providing post-sales services like product replacement
  • Little control over the product lifecycle. If dropshipper decides to discontinue the product, one cannot do much about it
  • Unstable prices, as dropshipper may frequently change pricing

To conclude, there are many ways of getting started with the CBD business. When it comes to simplicity and minimal investment, dropshipping is the best business model. However, in dropshipping, one has almost no control over the product branding and supply. It is a highly beginner-friendly model but may not be a good model in the long run.

On the other hand, wholesale CBD is perhaps a perfect model for those ready to invest a bit. It is a much better business model in the long run. It means that one can get products according to their specifications, and such products are branded according to the business needs. Moreover, wholesale CBD also provides greater margins and is a more stable and reliable business model over the long run.

Want to buy CBD wholesale, we are ready to supply an extensive range of high-quality products.

The Key Challenges of Owning a CBD Business in 2022

CBD is already a big thing, and it will become even bigger. Experts estimate that the global CBD market is bigger than 5 billion USD. But, that is not all. It is a market that is bound to grow at an excellent pace for the next decade or more. Thus, it is expected to grow at the rate of 15-20% each year, which is a very high growth rate.

However, again, that is not all to the story. After all, the size of the market or its growth rate does not provide a complete picture. What is good about CBD is the massive profit margins. When compared to other health supplements, one can still sell CBD products at a premium price.

There are many growth drivers of CBD sales. It is worth understanding that still the majority of the world population still has to explore the benefits of CBD products. Another excellent thing about CBD is that it can be added to just any product from foods, supplements, or cosmetics. And thus, the possibilities are almost endless.

Moreover, the covid-19 pandemic has only positively influenced the CBD market. It is because now, more and more people are looking for natural remedies to stay healthy and safe.

Many people wonder if it is the right time to enter the CBD business or if it is not too late?

First and foremost, it is never too late to enter any business. However, one needs to create the right kind of business strategy depending on the market trends. For example, marketing strategy in countries where CBD products are just starting to take off would differ considerably from more mature markets.

CBD business challenges

How To Start Up a CBD Business

It could not be easy for those inexperienced in the health supplements business to understand a few things. However, first and foremost, one must know that the healthcare products market is more regulated than some other products.

Thus, the starting point for CBD business should be exploring the legal regulations regarding CBD products in the nation. For example, in the EU, CBD oil is considered to be a novel food, and thus one must get CBD oil registered as a novel food with health authorities or the European Commission. However, laws in other countries may vary greatly, and some nations are yet to legalize CBD.

Additionally, one should also understand other laws regulating the food products, packing, advertising of the healthcare and food products, and more.

Once the person has fully understood the legal requirement for getting started, the next step should be deciding on the product profile. First, one must determine what kind of segment to enter, like CBD oil, CBD-infused foods, CBD cosmetics, hemp oil products, and more.

Once a person has taken a decision about entering the specific CBD segment, let’s say CBD products for physically active individuals, sports people, products helping them stay focused and train better. First, one would need to think about differentiating the product from competitors. This may is done in many ways, like adding different ingredients to the product.

Next, one should decide on sales channels and product promotion. For example, some may choose to sell their product through Amazon, while others do so through a dedicated Shopify store or WooCommerce store. Finally, depending on the choice of platform, one would need to come up with a product promotion plan.

CBD business and challenges

The Top 3 Challenges CBD Business Owners Face

Starting any business is never going to be a straightforward task. Therefore, initial plans require frequent reassessment and changes. This is especially true for relatively more regulated businesses like food supplements, medications, or novel foods. Below are some of the challenges most CBD business owners face.

Challenging Public Perceptions of CBD

It is true that CBD seems to be everywhere and in everything. But, nonetheless, there are still many people who know almost nothing about CBD. Even worse, they still think that since CBD is from the cannabis plant, it means that it retains some properties of marijuana. Thus, they often consider it as something addictive and harmful to health.

There are many ways to overcome these issues, like sponsoring more clinical research into the subject and sharing scientific information with clients. It also means creating the right kind of promotional campaigns that help clients learn more about CBD.

Dealing With the Legality of CBD in Different Countries

This may often turn out to be the biggest challenge to overcome. Many CBD businesses never turn into reality, as startups find it too difficult to overcome regulatory hurdles. In countries like the US, things may seem pretty straightforward. Nonetheless, laws differ in every state.

Similarly, in the EU, edible CBD products must now get novel food approval, which is quite a tedious process. It means preparing a massive dossier, going through lots of documentation, and investing time and money to get the approval.

Additionally, there are significant differences between how various laws are implemented and interpreted in various nations. For example, some may allow the import of CBD products but not allow their retail sale through online platforms.

Navigating eCommerce Challenges of Selling CBD Online

These days most of the sales come through online platforms, and brick and mortar stores contribute little to the overall sales of CBD products. Moreover, distributing products to traditional stores is quite challenging for a new business. Thus, the best way to sell their products is through e-commerce platforms for new businesses.

However, most people find it quite challenging to get started with eCommerce. Making products available on any online platform is one thing, but a much greater challenge is sales generation. Here the ways of product promotion are almost endless, from Google Ads to social media marketing. All these things are easy said than done. Online advertising requires the allocation of massive resources and prolonged effort to achieve any considerable sales.

Final thoughts

Getting started with the CBD business indeed requires much learning, but it is true for just any business. Thus, these challenges should not be a cause for canceling the business plans. Instead, it only demonstrates the value of proper planning. Additionally, one can readily overcome many of these challenges by finding the right business partner who can help you get started.

CBD in Functional Foods: A Guide

Cannabidiol (CBD) is one of the more than 100 cannabinoids in the cannabis plant. However, CBD is most popular, as it is most abundant in the plant, readily extractable, and is well studied by science. In addition, CBD has completely changed the way people perceive the cannabis plant. Now, they associate this plant with health benefits rather than substance abuse.

What is incredible about cannabinoids is that they have many different functions. Sometimes, various cannabinoids work in synergy with each other, and other times in an opposite way. Since CBD has so many health effects, it is surely a time to include it in a regular diet to recognize it as one of the most potent functional foods.

There are other reasons why It is necessary to start exploring CBD as a functional food. These days, 70% of all clinical conditions are non-infectious chronic ailments. One of the problems with chronic disorders is that they are difficult to treat with medications and cause significant pain and disability.

Just take an example of obesity, diabetes, hypertension, dementia, joint pains, lower back pain, and more. Most of these conditions are lifelong, or they tend to reoccur.

Studies show that most chronic ailments are lifestyle disorders. It means that they are prevented and better managed through lifestyle interventions rather than through the use of pharmacological drugs.

It means that there is an urgent need to understand the role of CBD in managing various chronic disorders. However, using health supplements daily is a challenge. On the other hand, consuming CBD as a part of the diet may better manage these conditions.

functional foods and CBD

What Are Functional Foods?

These are food items with health benefits extending beyond their nutritional value. It means that they not only provide energy and vital nutrients to the body but also help prevent and even manage health conditions.

Thus, for example, many spices like turmeric are not only used to color the food, improve its aroma, or for nutritional value, but it also has many other health benefits.

Similarly, CBD is excellent functional food. It mainly means creating products high in nutritional value and having the health benefits of CBD. It could be CBD-infused foods or even food products solely made of various parts of the cannabis plant.

Thus, take the example of hemp seed meal or hemp seed cake. It is what is left of the hemp seed after extracting its oil. However, this hemp cake is rich in vegan proteins, vitamins, and minerals, have small amounts of essential fatty acids and can be readily sourced. If we add CBD to this, we can create a food product that is nutritious and has all the health benefits of CBD.

Another example could be hemp seed oil, healthy oil that is quite rich in omega-3 fatty acids. However, hemp seed oil is naturally CBD-free. But, adding CBD to hemp seed oil would create excellent functional food.

Unlike healthy supplements, functional food is primarily for regular consumption as a part of a regular diet. Thus, for example, one can create smoothies using CBD-infused hemp seed meal or CBD-infused hemp seed oil as a salad dressing.

What Are Some Key Functional Food Benefits?

Functional foods provide many unique benefits over other products like food supplements or natural remedies. Perhaps the biggest advantage is a better nutritional profile and palatability. When consuming functional foods, one does not feel like taking some medicine. Thus, functional foods are easier to add to the daily regime. These foods are consumed just like any other food, and yet they have many health benefits.

When it comes to health benefits, the possibilities are limitless. It is because functional foods are not necessarily made using a single plant extract. Thus, one can add CBD to different healthy foods to create functional foods.

As already mentioned, one can use hemp seed meal with added CBD to make smoothies. One can use it before and after the workout. However, unlike conventional high protein supplements, it would also have the benefits of CBD, which may mean low anxiety, better focus, faster recovery, and the lesser problem of delayed onset muscle soreness (DOMS). It may also mean improved metabolic health and more.

Similarly, using hemp seed oil as a part of the diet is good, as it is quite nutritious. But hemp seed oil with CBD would be even more wonderful.

As already said that one can create even better products by combining different foods. Thus, just think about having CBD-infused multi-fruit juice daily in the morning. This would have all the benefits of multi-fruit juice, along with the health benefits of CBD. Furthermore, one can even fortify this juice with vitamins and minerals to create a highly beneficial and unique offering. Thus, as one can see possibilities here are endless.

CBD and funcional foods

What Are the Stages of CBD-Infused Functional Food Prep?

As the CBD market is quite saturated,  one of the ways of getting into the CBD business is starting with functional foods. Moreover, here the possibilities are almost endless. For example, one may create CBD infused food range focusing on physically active individuals or foods focused on managing certain ailments.

Creating CBD-infused functional food is pretty straightforward. Perhaps the simplest way of starting is just to come up with an idea of some food supplement range and then merely add some CBD to them. These could be food supplements for sports people like vegan protein powders, pre or post-workout shakes, meal replacement plans, and more. Or one can focus on specific disorders like foods for joint health, diabetes, brain health, and more.

Once you have come up with an idea, one of the most important things you need to know is whether your food item is oil-based or water-based. It is vital to know as CBD is naturally fat soluble but is poorly soluble in the water.

Thus, when it comes to adding CBD to oil-based products, it is pretty simple. One can buy CBD wholesale, like CBD isolate or THC-free broad spectrum CBD distillate, and then add these to foods.

However, if you want to create a CBD-infused energy drink, then you would need to use water soluble CBD isolate or water soluble distillate. Unfortunately, there are very few companies in the market like essentiapura that produce water soluble CBD. It is essentially a nano-emulsified liquid concentrate that is ready to add to just any water-based food and has excellent bioavailability.

Additionally, when creating products, one should also think about adding other beneficial ingredients to differentiate the product from the market. For example, a CBD-infused sports drink with curcumin and vitamin Bs reduces post-workout inflammation.

What Is the State of the Functional Food Market in 2022?

It is relatively difficult to say as there is no clear data. Moreover, definitions of functional foods differ globally. However, what we know is that the wellness market is almost $4 trillion, which is massive. Additionally, we know that CBD has been one of the major growth drivers of the functional food market for the last few years.

There are many reasons for the lack of accurate data. Just take an example of fortified juices. Some would say that it is just a food item, another would call it a health supplement, and yet others may classify it as a functional food. Generally, criteria differentiating between foods, functional foods, and healthy supplements vary significantly between the various nations, creating significant challenges.

Nevertheless, it is evident that the CBD market is growing in North America and Europe. Another encouraging point is that the market will continue to grow for a decade or more. The demand for CBD products is continually growing, and the market is still struggling to meet consumer demands. Thus, though the CBD oil market may be much saturated, the market of CBD-infused foods is still nascent and offers many business opportunities.

Top Ways to Boost Functional Food Intake?

If you have decided to get into the functional food segment, there is still lots to think about before launching any food product. One of the ways to start is to identify the segment that one wants to enter. For example, some may come up with a vegan range of products, others foods for brain health, and more.

If you want to know more about ways of boosting functional food intake, it is not very difficult. Here the secret is pretty simple, instead of choosing usual foods, better choose food products with some added health benefits.

Just take an example of dietary oil intake. Everyone consumes oil in one way or another. However, instead of going for regular vegetable oil, one may opt for organic, cold pressed, omega-3 fatty acids rich vegetable oil. If one can find such vegetable oil with CBD, that would be even great.

Similarly, instead of a regular glass of juice in the morning, why not consider multi-fruit juice fortified with vitamins or other beneficial herbs. Thus, such a juice would be not only nutritious but also beneficial to health.

if you are interested in CBD-infused functional foods, we can help you by giving more information.

 

CBD in France: A Market Analysis

France is one of the oldest and most ethnically diverse countries in the EU. It is a nation that has profoundly influenced human civilization through its culture, wine-making, philosophy, arts, music, and politics. It is also one of the most prospective markets for starting any business. Thus, considering France is a must if anyone wants to expand their CBD business in the EU.

France has been initially a bit reluctant to legalize it when it comes to CBD business. There is a cause for concern. France has a significant problem with illegal drugs, and French authorities were worried that CBD might somehow promote the use of illicit cannabis. However, finally, French authorities understand that it is not the case and CBD is a safe and beneficial health product.

First Off, Is CBD Legal in France?

Though there have been many ups and downs in the nation, CBD is finally completely legal in France and has very clear laws.

Like in many nations, the road to CBD legalization in France has not been smooth. France has been quite reluctant to allow broader use of CBD. Initially, it even disapproved of CBD import from other EU member states. Further, France has been slow to allow CBD sales in stores.

In 2019, when the European Commission regularized the CBD market by classifying it as a Novel Food, French authorities remained hesitant. As a result, some individuals got into trouble for importing CBD products. This led to prolonged lawsuits that CBD importers ultimately won. And finally, the highest court in France ruled that people can import and stores can legally sell CBD in the country.

Some of the lawsuits related to the actions of French authorities even reached the European Court, which ultimately helped legalize CBD not only in France but the rest of the EU zone. In addition, the European court ruled that French or other EU member states should not ban the import of CBD products that were legally produced in other member states.

So, now France is fully following the European Commission norms. It means that CBD oil for ingestion must get novel food authorization, and then it can be sold legally in the nation. Authorized or registered CBD products can be sold freely by the stores.

Here it is vital to understand that one can receive novel food authorization in France or even in other EU member states. This means almost no legal hurdles for CBD products legally produced in other EU nations.

When it comes to topical CBD products, they do not need novel food authorization. Similarly, hemp oil is not a novel food and can be readily imported and sold in the nation as a food product.

cbd in france

Can I Bring CBD Into France?

As already mentioned, one can bring CBD into France without any significant issues if the product has been legally produced in other EU member states.

Of course, the product must have undergone novel food authorization by the European Commission’s department of food safety and authority. If one is unsure about what novel food is, one can learn more about it on the website of the European Food Safety Authority (EFSA) website.

From a business point of view, getting this authorization is far easier if the product has been produced in EU nations. However, the procedure is much more complex for those making CBD products outside the EU zone, as there are more significant concerns about the safety and purity of such products.

For those looking to get into the CBD business in France quickly, white-label products from reputed European CBD manufacturers could be an excellent option. It is because such a manufacturer can provide all the necessary advice and documentation needed for the novel food authorization.

CBD Market Analysis: How Does the French Market Stack Up?

France is definitely one of the most attractive markets for healthcare products in the EU zone. If anyone is serious about doing CBD business, France should be on the top of their list. It is one of the biggest CBD markets in the region. Moreover, the acceptability of CBD products in France is excellent.

Although data regarding the CBD market size is still not very reliable, nonetheless, experts estimate that the total CBD market in France stood at about 131 million Euros in 2020. This makes France one of the largest CBD markets in the EU zone, perhaps only next to Germany.

At present French CBD market is dominated by ingestible CBD products, that is, CBD oil and CBD capsules. However, there is a significant market for vaping products, too.

France has dominated the global cosmetics market and fashion industry. Thus, though the CBD cosmetics market in the country is small, it may change considerably in the coming years.

Experts project that the French CBD market will grow at about 250% each year till 2030, which sounds fantastic. Moreover, there is a reason to believe that this trend will continue as France is a 2.5 trillion economy and has a population of above 60 million. Thus, it is one of the most perspective markets for CBD.

france CBD market data

The Top 3 CBD Manufacturers in France

As now the legal status of CBD is clear in France, many companies are jumping into the CBD business in the nation. Some of the CBD producers in the countries are:

NOTO

It is an organization that produces mostly THC-free CBD products. It has quite a diverse range of products, and the company focuses a lot on various health conditions like CBD for improving sleep, helping with menstruation pain pains, post-menopausal syndrome, and more. The company also produces products with added terpenes.

Divie

Yet another budding company with an excellent product range of CBD oil products comes in excellent packing.

Essentia Pura

Yes, we can help start a CBD business in France. We are based in Slovenia. However, Essentia Pura is a pan-European company with extensive experience in assisting businesses that want to enter the CBD business in any part of the world.

Essential Pura can help businesses of any size. We have our own in-house CBD extraction and CBD-based product manufacturing. However, we also produce CBD extraction machines and provide the necessary technology or expertise for startups.

If you are interested in starting a CBD business in France or any part of the world, just contact us.

CBD Market Analysis: Spain

The CBD market in the EU, including Spain, has been booming for the last decade, yet it remains chaotic as ever. It means that market information is still very sketchy. There are varying views about the total market size.

Thus, there are conservative reports that estimate that size of the European CBD market is perhaps close to just half a billion Euros. On the other hand, there are more encouraging reports estimating that the size of the CBD market is probably already above two billion euros.

When it comes to the information regarding the market of individual countries, it remains even more unclear. However, this creates a significant problem for businesses planning to invest in the CBD market.

There are many reasons for different kinds of information. The CBD market has, till now, lacked clear regulations. Thus, there has been a lack of information about CBD sales in individual markets. However, with the introduction of Novel Food Regulation in the EU, things will change. Entering the CBD market may become tougher, but the market will become more organized.

For those looking to start a CBD business in Spain, it would be encouraging to know that it is a thriving market that is bound to grow quickly. Thus, Spain must be on the radar for anyone looking to start a CBD business.

cbd market spain

First Off, Is CBD Legal in Spain?

Yes, CBD is completely legal in Spain. Moreover, Spain has a long history of using cannabis, unlike other EU nations. Additionally, the warm weather of Spain is also suitable for hemp cultivation.

However, there is much disinformation about the legality of CBD in Spain, and there is a reason. Spain is not a centralized nation like many other EU nations. In 2022, 17 autonomous communities and two autonomous cities formed Spain.

The existence of autonomous communities means that the way CBD business regulations may vary significantly in the different parts of Spain.

Till 2019, CBD products could be readily sold in Spain as food additives. However, since then, with the introduction of Novel Food Regulation by the European Commission, the market has become more regulated.

The introduction of Novel Food regulations does not mean that CBD is not legal anymore. It merely means that any CBD product must be pre-authorized or registered as a Novel Food in any of the EU member states.

Authorization of CBD products as Novel Food is a bit challenging and time-consuming process. This has led to the decline in CBD business in most EU nations. But then this decline is just temporary. In the end, it will result in a better-regulated market. Only high-quality CBD producers will stay in the market as they are able to fulfill all the requirements needed for the Novel Food authorization.

Here it is vital to understand that CBD products for topical use and hemp seed oil products can still be readily sold without pre-marketing authorization. It is because topical CBD is not for consumption, and hemp oil is not a Novel Food in the EU.

Can CBD Be Taken to Spain?

Yes, one can take CBD to Spain, both for personal and commercial use. However, one would need to comply with specific laws. These regulations in Spain are in line with EU-wide requirements.

It means that legally produced CBD product in other EU member state is also legal to import or sell in Spain. Additionally, the product must have Novel Food Authorization in the country of production.

If any other EU nation has not authorized the product as a novel food, one can still take it to Spain, but one would need to apply for Novel Food Authorization locally in Spain.

It generally means that if someone is bringing CBD produced by some good manufacturer in the other parts of the EU, then bringing or selling that product in Spain will not cause significant issues. It is because the manufacturer located in another EU member state would readily be able to provide all the necessary documents needed for legally selling CBD in the country.

However, bringing CBD from outside the EU region may pose a greater challenge. It would mean that one must first register the product as a Novel Food in the nation. This pre-marketing authorization may take some time, but then one can legally sell CBD products in Spain.

CBD oil market of spain

Spain’s CBD Oil Market Size

When it comes to the CBD oil market size, it is quite challenging to estimate under present conditions. It is because, since the introduction of Novel Food Authorization, there has been a decline in the number of CBD products readily available. However, this does not result in a decline in CBD sales.

Thus, estimates say that the CBD market in Spain maybe somewhere around 20 million Euros. However, some think it may be much higher, as lots of CBD sales remain unaccounted for in the country. In addition, people are readily able to buy CBD from other EU nations in Spain, where the controls over CBD products are less strict. Thus, the actual market size might be even 3-4 times higher than these estimates.

Most estimates also show that explosive growth in the CBD market will continue for the next several years, or perhaps up to 2030. Thus, CBD business experts believe these are the best times to start a CBD business in Spain when the market is still very nascent.

The Top 3 CBD Manufacturers in Spain

Since Spain is relatively a warm nation, its weather conditions are pretty suitable for hemp cultivation. As a result, there are many large and small CBD producers in Spain.

CBD Spain Medicinal Food SL.

CBD Spain is one of the oldest CBD producers in the country, and they have been active since 2010. It is a company that both grow cannabis and extracts CBD. It has a much focus on full-spectrum CBD.

Granjacia Hemp Farms

It is another Spain-based company with massive hemp farms and CBD production. They especially focus on growing or cultivating hemp for other organizations on a contract basis. Additionally, they have a significant range of topical CBD products.

Essentia Pura

We are not precisely Spain based company as we are located in Slovenia. However, unlike Spain-based companies, our focus is not on hemp cultivation but rather on crafting the best CBD products for pan-European needs. We can offer CBD isolate, broad-spectrum distillate, water-soluble CBD products, and more. We offer both white labeling and private labeling services.

We can help you get started with your CBD business in Spain and beyond.

Is CBD Legal in Finland?

Finland is an EU member nation with high happiness index and a vibrant economy. Moreover, it constantly outperforms many other EU nations on different indexes like freedom of speech, healthcare, access to education, ease of doing business, and so on. Thus it is good to know about CBD in Finland.

Thus, no surprise that this large Nordic nation with a population of just a little above 5 million people always respects and follows the EU norms. It means that, like most EU nations, CBD is legal in Finland.

In fact, there has also been an increasing demand in the nation for legalizing the recreational use of marijuana. One of the ruling parties, The Green League, is at the forefront of demanding the legalization of recreational cannabis use.

When it comes to the public attitudes towards CBD and cannabis in general, they are mixed. Illegal drug abuse is a significant problem in Finland. Finland also has among the highest drug death rates in the EU region. Thus, some worry that too much liberalization might have negative consequences for Finnish society.

A Short History of Cannabis Laws in Europe

There have been many ups and downs when it comes to the European relationship with cannabis. Like most of the world, cannabis use was mostly legal or poorly controlled in Europe till the 19th century. However, by the mid of 20th century, its use became illegal in the whole of Europe.

However, in the late 20th century, many people started demanding the legalization of cannabis, especially those living with chronic pain. Thus, in the early 21st century, many countries legalized the use of medical cannabis. However, medical cannabis is sold strictly by licensed pharmacies and dispensed only based on doctor’s prescriptions.

Since doctors are constantly monitored for prescribing cannabis, and pharmacies also have to maintain much documentation, it would be correct to say that the use of medical cannabis is relatively uncommon. Nonetheless, it is worth understanding that one can get medical cannabis through a doctor’s prescription in most Europe, including Finland.

However, soon researchers realized that not all cannabis extracts are harmful. They understood that CBD is quite good for health. It is non-mind-altering and safe. Thus, most countries started legalizing CBD in the early 21st century.

Thus, in 2018, the EU realized the need for a unified approach to CBD. It then included CBD (cannabidiol) in a Novel Food Regulation, which came into implementation in early 2021. This EU-wide regulation helped legalize the CBD in most of Europe.

However, when it comes to the legalization of recreational use of cannabis/marijuana, things are still in the early stages. Nonetheless, Malta is the first EU nation to start taking steps to legalize recreational cannabis use. And thus, it is expected that many EU nations might legalize even recreational use of cannabis/marijuana in the coming years.

finland and cbd laws

What Drugs Are Legal in Finland?

There is no recreational drug that is legal in Finland. There may be several reasons for it. Traditionally, Finnish people have been reluctant to demand the legalization of any drugs. Moreover, Finland has some of the highest death rates due to illicit drug use among young adults.

Hence, possession and use of any drug are illegal in Finland, including hash, marijuana, amphetamines, and so on. A person would be fined or even imprisoned for possessing these drugs in the country.

However, Finland does allow the medical use of some drugs, including cannabis. However, any such medication must be first registered with FIMEA (Finland Medical Agency) and can only be sold in specialized pharmacies and strictly on a prescription.

So, Is CBD Oil Legal in Finland?

Yes, sales and use of CBD oil are completely legal in Finland. The good thing about the nation is that it is quite good at following and implementing EU regulations. Since the European Commission has legalized CBD and has set a clear pathway for the approval of CBD products, Finland also follows the same path.

CBD oil is readily available in Finland with no legal restrictions. One can buy CBD oil from corner stores, pharmacies, and even online shops. But, of course, it must be free from psychoactive substances, which means that THC content must be less than 0.02%.

start cbd oil business in Finland

How to Start a CBD Business in Finland

In recent years the way of doing CBD business has changed significantly in Finland and the EU. For example, when CBD became legal in many European nations a few years back, one could generally import CBD in a country like any other food item.

However, from March 2021, one can only import or sell CBD in any EU nation, including Finland, after getting Novel Food approval from European Commission. It means that there are some regulations in place.

One would need to submit the product’s dossier to the Finnish Food Authority along with a certificate of analysis of the product. The authority may also ask for finished product samples for testing purposes. This procedure is to prove the safety, purity, and potency of CBD products in the country.

However, here it is vital to understand that if the product is produced legally in any other EU nation and it has received Novel Food Authorization in the country of production, then one can import CBD product directly into Finland without any need for other permissions. This is because documents regarding Novel Food Approval from one EU nation are valid in all the member states.

However, those producing CBD products outside Finland would need to apply for the Novel Food Authorization with the Finnish Food Authority, but of course, only if they have not done so in any other EU nation.

On the other hand, if they have received the authorization of any of the EU member states, then a copy of those documents is enough for starting a CBD business in Finland.

It is vital to understand that Novel Food Authorization is only needed for CBD oil or CBD-containing products, but not for hemp seed oil. Therefore, one can readily sell hemp seel oil in Finland without many legal hindrances.

If you intend to start a CBD business in Finland, contact us, our experts can help you get started.