CBD cannabis is the hot new product in the wellness industry. Known for its physical and psychological benefits, it is now at the center of a thriving business in the US, Canada, UK, but also in France. Focus on this booming market.
CBD cannabis, a “star” product
CBD cannabis has a good image among athletes, stars and the general public in general. Today, it is actually a very popular product, marketed in a multitude of forms:
- Creams or lotions etc.
A success that is particularly linked to its potential effects against stress and chronic diseases, which have been praised by a whole fringe of specialists.
In the United States, the CBD cannabis business in 2018 represented approximately $591 million. According to a study conducted by Brightfield Group, this number is likely to increase by 40 times by the year 2022. Furthermore, experts estimate that by 2026 the sector will weigh over $17 billion worldwide.
Several French manufacturers have already positioned themselves to take advantage of this windfall. We find among them:
- Hemp growers;
- Analytical laboratories;
- Cosmetics manufacturers;
- Actors from the world of health.
Business in CBD cannabis: blocks to be lifted
Of course, all is not rosy in the cannabis realm. A few major obstacles are slowing down the exponential growth of this market.
Cultivation of highly controlled plants
For now, it is possible to grow hemp or even cannabis. But French law obliges producers to destroy the flowers and buds, the parts richest in CBD cannabis. Which is a big blocker.
In fact, e.g. cbd oil from the flower. Faced with this ban, producers are therefore forced to import CBD oil other European countries such as the UK or even the USA.
There is still legal uncertainty
At the moment, it is difficult to say exactly whether it is legal to market CBD products in France, because the law is not really clear in this area.
For example, the courts declared themselves incompetent to judge two Marseille entrepreneurs who had been selling electronic cigarettes made from CBD oil since 2014. French justice accuses them, among other things, of presenting their product as a medicine and of using the entire cannabis plant for its production. But the case was simply dismissed because the judge thought there was too much ambiguity about the law.
The situation is the same for the rules on advertising in the media and on the Internet.
For now, it is therefore difficult to know exactly what is allowed and what is not. But the lines are moving. Over the next few months, clearer legal provisions are likely to be made to govern the Cannabis CBD business.
Difficulty accessing finance
With a lack of clear rulesinvestors are still very hesitant about the CBD market. Today, it is therefore relatively difficult to obtain financing for the manufacture and marketing of derivative products. Similarly, there are only a few online platforms that accept to insure bank transactions resulting from the marketing of CBD cannabis.
Open a franchise to get into the CBD business
But of course these obstacles are not insurmountable. The proof is that shops selling CBD products are launched almost every week around the world.
If you are planning to start this business, it is possible. But for this it is ideal tochoose a formula that limits the risks as much as possible. Good support is also necessary. For these reasons, a business model such as this is an example of CBD franchise is probably the wisest choice.
You will thus be able to take advantage of all the advantages of the classic franchise system to develop quickly and create a comfortable place for yourself in the CBD business in France.