The cannabis industry is incredibly popular and profitable, and consumers are quick to buy high-quality cannabis products both for recreational enjoyment and to reap the many medicinal benefits of the cannabis plant. For new business owners looking to occupy some of this cannabis space, you’ll quickly learn that there are countless product options. However, there is one cannabis product that always turns heads, CBD edibles. For this reason, many startups are looking to move into edible manufacturing, but don’t always know where to start. With the right business plan and a great manufacturing partner, though, CBD edible manufacturing can be just as easy as it is profitable.
Why Are Business Owners Choosing Edible Manufacturing?
Edible manufacturing is a popular choice for startups and business owners because edibles are a popular choice for consumers. Gummies, candies, tinctures, and other oral products continue to be some of the most popular CBD products on the market. For some consumers, edible products are just less intimidating than other products, like vapes or hemp flower. For others, it’s the reports of increased duration of effects that draw them in. Further, certain edibles are popular because they provide convenient, portable, and discreet doses of CBD that can be used anywhere.
With recent updates to the Farm Bill, the CBD industry continues to flourish. Although reports vary, one recent review suggests that the industry will gross $16 billion before 2025. The updates to legislation have transformed the CBD industry, which was once made up of mostly medical marijuana products, into a more hemp-based market. Now, growing, manufacturing, and selling hemp products gives you the ability to reach consumers everywhere. Hemp manufacturing is also attractive to business owners looking to build brands that are organic, plant-based, cruelty-free, or vegan. No matter your needs, you can find CBD edible options that are profitable and align with your company’s morals and standards.
Key Tips to Successful Edible Manufacturing
Before you decide to take the step forward to manufacturing CBD edibles for yourself, you’ll need to thoroughly design a business plan. Of course, the same is true when establishing any profitable company, but there are a few unique tips that apply to CBD products and edibles. Using the following tips, you can build a business model and be quickly on your way to designing and producing your own CBD edibles.
1: Understand Your Product and Branding Options
When you start looking into edible manufacturing, you’ll quickly learn that you have two main options. The first option is to do all the product manufacturing, safety testing, packaging, and labeling on your own. Even for small brands, that would mean really high startup costs and a demand for a lot of space, specialized equipment, trained employees, and more.
The second option is often more reasonable, convenient, and profitable for small business owners: outsourcing. Outsourcing your edible manufacturing needs to a professional manufacturing company allows you to skip a lot of the tedious work to focus more on branding and marketing your product. Many manufacturing companies exist, but CBD Nationwide offers two useful options for established businesses and small startups alike. The quickest and easiest options for people looking to sell CBD edibles is to choose our Bulk Manufacturing option, where you can buy CBD gummies, hard candies, tinctures, and more in wholesale quantities. However, reselling isn’t exactly manufacturing, and many business owners are looking to launch their very own brand.
Luckily, experts at CBD Nationwide can also help you through the private labeling process, which gives you total control over the manufacturing process for your products. When you choose to design a private label CBD edible with CBD Nationwide, you get total control over the product’s ingredients, label, and packaging. You can design the edibles however you please and outfit them with your own brand and logo. After designing the product, you only pay for production and shipping to your store. For smaller companies, this saves them on time and startup costs and can help keep manufacturing costs consistent over time, with no need to purchase specialized equipment or hire or train any employees. For most brands, private labeling is the easiest and most profitable way to manufacture edibles.
2: Paying for High-Quality and Safety Testing is a Profitable Investment
After you’ve designed the formula for your CBD edibles and manufacture the first batch (whether you outsource or do it yourself), you’ll want to have each batch tested by a qualified laboratory to ensure the potency, quality, and safety of the edibles. As for anyone selling health, wellness, or edible products, ensuring the safety of your products is important consumer health and your brand’s liability. Poor quality edibles or inconsistency will make it hard to build and maintain a good reputation.
When you choose CBD Nationwide for your edible manufacturing ventures, you’ll be getting an edible product with a documented chain of custody from seed to sale. We hold our edible manufacturing process to the highest standards and only source from high-quality hemp grown in the United States. After production, our products are batch tested in an ISO certified lab to ensure safety, consistency, and stability of each batch. These tests help check the terpene and cannabinoid content for the products, but will also help to identify mold, pesticides, microbial, heavy metal compounds, or other dangerous additives that may accidentally contaminate the batch.
Many startups are hesitant about product testing because there is a significant price gap between untested and third-party safety-tested products. Sometimes, skipping the safety tests may look appealing in an attempt to save money. However, consumers are becoming more and more concerned with the health and safety related to products, and are far more aware of the low-regulation CBD market than ever before. Proper product testing is a crucial step to ensuring the safety of your products, protecting your brand from liability, and knowing exactly what goes into every batch. Many consumers are happy to pay the markup for product testing to ensure their own safety as well, and proper safety testing documentation will be necessary if you plan to market your edibles as a high-quality CBD product.
3: Don’t Overlook the Importance of Great Packaging and Labeling
Packaging and labeling products is a necessary step before they can be marketed and sold, but many people underestimate the importance of quality packaging and label design. The label will be the very first thing your customer’s see, and the aesthetic of your product will definitely have some impact on its sale, even though it may have no impact on the quality and efficacy of the product itself. A great label will have your name and logo, but will also include all other information necessary for safe and informed consumption. Generally, this includes the name of the product, all of the ingredients listed in descending order, a suggested dosing amount, information about where and how the product was sourced, and information about how or who to contact if further information is needed. For products that have undergone proper safety testing, a “third party tested” label may be appropriate. Often, this label is a key sign for consumers that the product may be of good quality. If you include this label, you’ll need to provide access to the laboratory testing for consumers as well, whether you give access on your website or send it out by request.
The packaging is just as important, if not even more crucial to the prosperity of your CBD edible brand. Proper packaging helps maintain freshness and stability, which is especially important when you manufacture edibles, as they can lose their taste or easily become stale over time. Improper packaging can also result in lower potency as the product becomes stale. Plus, holes in packaging, packaging that doesn’t seal properly, or packaging that is cheap and flimsy are often deterrents for consumers who are concerned with the quality of their CBD products. Poor packaging will almost surely end in low sales. At CBD Nationwide, we help you discover all of your packaging and labeling options and ensure that each product is securely packaged to assure the quality, taste, potency, and consistency is exactly the way you want it.
4: Aim to Offer Variety Without Spreading Yourself Too Thin
As you design all of your new CBD edible products, you may have your eye set on one particular product, or you may be overwhelmed or impressed with all of the options. It’s important to find balance in this scenario, especially if you are launching a new brand. OF course, offering variety is key to appealing to a large customer base and increasing sales. However, too many options can be overwhelming for customers and make marketing efforts more difficult, too. Too little options and your brand may look unprepared, or you may not have an option that suits every CBD edible user. Luckily, CBD Nationwide can help you find the perfect balance because we offer a variety of edible applications. Depending on your needs, you could purchase wholesale or white label gummies, tinctures, hard candies, and more. Variety can include a range of different product types (CBD Nationwide can also help you with manufacturing your own line of topicals, tablets, and more!), but may also just mean that you offer a variety of potency options for different users. Because CBD is most often chosen by patients looking to improve their health or manage one or more conditions, offering a variety of potency options will help you better meet consumer needs, without needing to put too much time into product design or marketing.
Edible manufacturing can be incredibly lucrative if done correctly, and the outlook for CBD products and edibles is bright. If you are ready to take the first step to manufacturing your own line of CBD edibles, you can contact CBD Nationwide or request a quote today. We can use your ready-made formula or help you design a formula all your own to manufacture CBD edibles exactly the way you want them. Our experts will walk you through every step of the process, including taking proper care to package and label accordingly, so all you have to do is focus on marketing and sales.
Katie DeVoe is an in-demand educator, speaker, and thought leader in the hemp space. Over the last 12 years, she has started multiple, successful CBD businesses and been a guest speaker at numerous hemp and CBD conferences.