The global CBD market is anticipated to grow at a strong rate. Market projections see the recreational cannabis market expected to grow over 40% between 2020-2025 as availability increases and prices drop. With medicinal and recreational marijuana legalization increasing throughout the U.S., more consumers are exploring the benefits of cannabis products, and the market has responded with an array of innovations.
How can manufacturers help cannabis business owners in the growing market?
Work Toward Business Agility
In the CBD industry, state legalizations are regularly changing so it can be confusing to keep track of the latest. In addition, every state has different advertising regulations. But manufacturers who stay up to date on market research have a leg up on the competition. They understand that the legal requirements of packaging, labeling, and marketing in the cannabis industry can be complex, but are on deck to respond to any changes as necessary. Being open and agile in the time of crises and market demands can transform your company. Business agility to produce niche product lines can augment your growth. Although the legalization of cannabis and cannabis products is still fairly new, manufacturers focused on flexible solutions have been adapting well to changing consumer needs.
Private Labeling And Packaging
As with any product or service, many would agree that half of a business’s success lies in marketing. For cannabis companies, a large part of their marketing and branding initiatives is in their packaging and labeling. But similar to medical industry printing restrictions, cannabis products are challenged with label requirements. The good news is that nimble and innovative manufacturers are diversifying their services to meet these requirements.
Star Label Products, for example, offers cost-effective custom labeling options for cannabis products ensuring all the legal requirements are met and are custom according to state-by-state regulations. For example, cannabis products are legally required to provide the following information on their label:
- Marijuana strain name
- Date tested
- Lab name and test number confirmation
- Net weight in grams
Cannabis products tend to be small, so there’s a great deal of information that needs to be printed on a small surface. Health warnings must also appear and adhere to specific color regulations. With so many restrictions and updates to those restrictions, cannabis companies are challenged with bulk packaging and labeling orders. Manufacturers should see this as an opportunity to seek economical solutions for their customers and advance their digital printing capabilities to meet the changing industry demands.
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Create CBD Industry Business Opportunities With An Online Presence
The cannabis industry thrives on the digital world. For cannabis and CBD advertisers, Forbes says it’s important to utilize current customer data to understand the type of people interacting with your brand or purchasing your products. As with any market, focus on education — not selling. Create content that educates your buyers. How can you elevate their brand with your solutions? What is your expertise-level in the industry? Make sure your website speaks to these concerns of CBD companies.
See how Star Label Products uses an Applications section on their website to speak to the markets they serve. They created a Cannabis Label webpage that addresses label requirements and industry regulations.
With COVID-19 regulations limiting consumers from visiting brick-and-mortar shops, many cannabis companies are heavily relying on social media and e-commerce platforms to market to consumers this year. Manufacturers should see this as a lesson to bolster their online and e-commerce presence too. Cannabis companies will seek manufacturing partners who can strengthen their presence in the growing market while keeping the complex regulations in check.
Manufacturers and distributors are reaching businesses in the cannabis industry with their company profile on Thomasnet.com, where more than one million buyers source industrial products and services every day. From browsing cannabis and medical marijuana packaging suppliers to private labeling manufacturers to CBD oil suppliers — buyers turn to Thomasnet.com for their sourcing needs.
A company listing on Thomasnet.com ensures you reap the benefits of the cannabis industry — for one manufacturer, a Thomas Verified Supplier Badge on an RFQ page created a 92% improvement in submissions.
"Thomasnet.com has been a worthwhile venture for our company by substantially increasing our brand recognition and allowing those that need the products and services we offer to connect with us in a real way. We are now well known in the region as well as national marketplace and have been able to secure business that we would never have been considered for in the past." — Blisterpak, Inc.
Legalizing CBD in various regions and the rise of chronic diseases will be major drivers for the industry. CBD companies looking to increase their market share will seek partners committed to high-quality. Ensure your website speaks to quality assurance and how your brand aligns well with the image your prospects are trying to project. If you have questions on the best ways to position your manufacturing company to win new business, contact the team at Thomas. Degreed engineers support our marketers so we understand the complexity of your industry. We can run a free digital health check on your efforts to let you see exactly what you need to stay ahead of competitors.
Thomas lets us develop accounts that build our backlog and keep us more stable as the economy grows. One Thomas lead that came to our company spawned an entirely new company for our business.
Here are additional resources for manufacturers to increase their market share or tap into a new one like the cannabis industry:
- Market Demand Growing For Cannabis Beauty Products
- In-Market Buyer Report: See If CBD Companies Are Searching For Your Services
- Case Study: How Corrugated Metals Tapped Into A New Industry
- 2020 Sourcing Data: What Did B2B Buyers Source Last Quarter?
- How Big Companies Choose New Suppliers
- The Ultimate Guide To Marketing For Manufacturers
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