After the legalization of the Hemp and Marijuana cannabis industry had a sudden boost and is now the most trending one. One subset of that Cannabis market is turning into a multi-billion dollar industry, the CBD industry. It is expected to cross the gross market of $20 billion by 2014. And this is the reason that more and more competitors are entering the market. It makes it quite tricky for brands to market their CBD and invest in marketing agencies and consulting firms.
Understanding the CBD Market:
Until now, the CBD market has become huge and is already growing rapidly due to the customers and ongoing research finding out how CBD is helpful. It is estimated that by 2022, there will be a jump in the sales of CBD from $500 million to $1.8 billion annually. Experts have already said that CBD will cross the entire legal industry of cannabis. But if you have a closer look, the CBD market is just following the footsteps of the Marijuana market that will reach $23 billion in 5 years.
It’s very easy and attractive to set CBD business online, but you might face challenges that can compel you to back off. People are still uneducated, and this makes it tough for you to decide on marketing strategies. And there are lots and lots of CBD brands out there in the market, so you need to outfox them.
What Challenges do CBD Marketing Brands Face?
Although that legalization factor has given a sudden boost to the industry, certain factors stop CBD industries growth. Here is a list of those challenges:
CBD has been misinterpreted right from the time of its introduction to the market. Although many people now know what CBD is and consume it too. But still, some consider it is not safe and legal. This stigma is particularly false as it is the safest and natural pain reliever. You must try a CBD vape oil kit and other CBD products to feel the difference it can serve you with.
Expansion in the Market:
As the CBD market is unregulated, it grows easily crowded without any hurdles; anyone can enter the market as a CBD brand. It is the market that is experiencing a sudden boost and growth. People will readily want to be part of it. With increasing saturation in the market, the CBD industries are adopting measures to make it a cutthroat competition. You must always check your branding, strategies, and products to win in the competition.
Choose an Aspect That Fits your Brand:
The CBD market is very diverse and is huge as per the aspects of its advantages. It is seen as a treatment that can cure everything. And this is the fact that makes it difficult for brands to position themselves and enter the market. It would be best if you found out the right target that your CBD will treat. It is where most of the brands fail and do not experience growth. With a single CBD product, you cannot claim all the benefits as this would disappoint customers when they do not find results. To capture customers, make your brand unusual.
The audience is the most important part when you are working online. Legalizing CBD varies from state to state, and you might find different customers from different backgrounds. Hence developing a strategy to target the right audience is a must. Answer questions like age group, typical audience, symptoms of customers, and the compelling factor that will help you target the right audience. Also, while targeting customers, you know about your rival companies’ strategy too.
Be known to the Laws:
It is confusing that laws and regulations for CBD vary at the local level, state level, federal level, and international level. As a result, this CBD business is viewed by lenders and banks as a high-risk business. As a result, it is difficult for CBD brands to gain the necessary investment for funding agencies, investors, and consulting firms.
How to Market CBD Brands in the Right Manner?
It is very important to market your CBD in the right way to remain in the competition. Here is a must to do checklist:
- Know who your target customer is.
- Always keep an eye on your competition.
- Mention values associated with your products and brands.
- Create a unique identity for your brand.
- Build your online presence.
- Develop a winning PR strategy.
CBD is growing and will grow to a great extent shortly. It will cross the $23 billion market nearly in 2025. It is why many competitors will come and go, but you must build your brand so that no brand can hamper your growth. Instill your roots hard into the market.