The swiftly expanding CBD market in India presents itself as an opportunity for entrepreneurs who are interested in the CBD business. There are a variety of CBD-based products available on the market, such as tinctures, capsules, gummies, topical creams, vape concentrates, and many more. A whole segment is also targeted at pet animals. This means that the new players in the supply chain get plenty of room for growth. This is not just applicable to retailers and manufacturers, but also CBD dealers and distributors.
There exists little to no useful information regarding the same due as the acceptance of CBD in India is still in its nascent stage. However, this is changing for the better as an increasing number of people are now embracing CBD for its various benefits. This indicates that the market for CBD products in India will soon witness unprecedented growth. Within the supply chain of CBD, one gets to choose from a handful of roles. One of these roles is that of a dealer/distributor. While it is just as profitable and promising, it does have its own set of challenges.
Getting started as a CBD dealer
Just like any other business, there are certain things to keep in mind while venturing into the CBD business. However, some things, such as the existing laws and regulations, are of prime importance due to the gravitas surrounding hemp and everything related to it. Some of the most crucial things any new dealer should pay attention to are listed hereunder
Licensing and Approval
The licensing procedures and requirements for CBD vary from state to state and need to be complied with to carry on the business. The rules and regulations may vary slightly from state to state. The laws are even more stringent in the case of medicinal CBD. The regulatory framework for CBD in India still has a huge scope for improvement. In this dynamic and constantly changing environment, it becomes even more important to stay abreast of the latest developments in the industry.
Top CBD Oil Manufacturer in India
Finding the Right CBD Manufacturers
You need to find a hemp product manufacturer with all the necessary certifications. You also need to familiarize yourself with the hemp manufacturing process and all the other intrinsic details related to it, such as the place of origin of the hemp plant and the way it was grown. While some manufacturers use indigenously grown hemp, others prefer to import it from places such as Europe, China, and North America as it can be less tedious in many cases. Ideally, hemp should be a non-GMO, organically grown crop to ascertain the superior quality of CBD oil. In the case of CBD, it is not only the retailers and the distributors who need to comply with regulations. Producers and farmers, too, are bound by regulatory constraints. Therefore, having an in-depth knowledge of the entire supply chain becomes mandatory. The extraction method being used by the manufacturer is equally important. Opting for a GMP-certified manufacturer is an added benefit. The most important thing, however, is the presence of THC in the final product and its concentration. As per the present regulations, only products that contain a 0.3% or lower concentration of THC can be sold legally.
The first and foremost thing to ensure is that the CBD product should not contain any more than 0.3% THC. You also need to be assured of the purity and efficacy of the product. The best way of doing this is by opting for third-party lab tests. This works in the favour of all parties involved, as long as the results are transparent and accurate. There are some state-of-the-art, certified, and independent labs to choose from that offer third-party testing for CBD products.
Building the Right Network to business as a CBD Dealer
In order to increase profitability, you will be required to make strategic decisions. The retail partners you choose ultimately determine the future of your business as a CBD dealer. The marketing strategies of your retail partners must resonate with you. The online sale of CBD presents lucrative opportunities not only for retailers but also for dealers and distributors. You can also be an exporter, as becoming an exporter during a time when the demand for CBD and CBD-based products is on the rise is highly promising and bound to be fruitful in the long run. In the end, the key to success as a distributor lies in building the right network.
For a long time, the lack of awareness among the masses regarding CBD remained the biggest reason why the hemp industry in India couldn’t reach its full potential. The lack of a regulatory framework presented itself as another major obstacle. This discouraged entrepreneurs from venturing into this field. Despite this, the CBD market in India is growing exponentially. This can be attributed to the increasing awareness as things are looking up and the CBD industry in India is witnessing slow but steady growth. Even though any new CBD dealer/distributor is faced with several challenges, these can be overcome by strategic planning and good decision-making. Hopefully, in the years to come, the CBD industry in India will witness better organization due to increasing awareness and increasing demand.