The CBD industry is on a steep trend upwards thanks to legislation that consolidated the position of hemp farms, who produce a key component used to make cannabidiol. Yes there is turbulence as a minority of individual states attempt to part with federal provisions, but global expansion is happening too fast – precisely mimicking what happened to the Airbnb megatrend: by the time NYC sought to obstruct its growth, it already took international markets by storm. High quality US producers may hold the key to this global success story thanks to superior plant genetics and robust quality assurance.
With CBD tipped to be a mega trend in health and ecommerce, many new brands are launching. The biggest question that senior teams ask:
“How to produce CBD cannabidiol?”
It turns out that there is a company in the US, known as Industrial Hemp Partners (IHP), that serves as a major B2B connection in the CBD market. With a strong team of scientists, investors and ample natural resources secured, it is estimated that they supply the majority of “CBD producers” with key ingredients such as CBD isolate. This week, they released information via Terravidaonline, on the process followed to actually make CBD, which we have used below.
CBD has been quickly growing into a well-established and recognized oil, because of its multitude of uses. Now that the public is becoming aware of exactly what CBD oil is and what it is used for, popularity is surging – prompting existing health brands and retailers to expand into CBD through white label and other ways.
According to Edmon Mamane, the CEO of Terravidaonline, who supplies other businesses with white label CBD products, educating the industry is important to ensure sustainable growth. He said: “when looking into finding a producer source for all your CBD hemp oil needs, it’s important to ensure you have a clear distinction on what it is, and what it is not. The last few years have seen an increase in the understanding that there is a separation for both the purpose and effects of CBD oil in comparison to marijuana”.
Though there is still a clear connection between the two, as more and more states have begun to legalize marijuana for recreational or medicinal purposes, so too, has there been an increase in the use and acceptance of CBD oil for its many qualities and properties. Dr. Deepa Verma (MD) of Florida said the following to Jpost: “CBD must be analyzed and evaluated to certify that it is pure and free from harmful toxins and pesticides and chemicals. CBD must be verified that it can provide the claimed and listed benefits”.
Understanding what CBD oil is:
CBD, or cannabidiol oil, is an extract from a hemp plant. Hemp and marijuana are both plant varietals that derive from the cannabis sativa family, and among their many physical differences (broader leaves of marijuana, skinnier leaves of the hemp plant) they also have vastly distinct chemical compositions.
The chemical composition of the hemp plant has multiple purposes and functions and benefits when it comes to the human body. It does not have the THC (tetrahydrocannabinol) that marijuana has, which is the psychoactive component of marijuana that induces the effects of being high. So, while both are derived from cannabis, they do not produce the same effects or function in the same way.
The Effects of CBD Oil:
It’s first off important to note that the quality and effects produced by CBD oil can vary distinctly from producer to producer. This article released by Harvard shows that while a lot is known, there are some unknowns too. CBD oil that is produced by companies who know what they’re doing can have a number of different uses: treating anxiety, reducing depression, managing epilepsy, pain management, decreasing inflammation, and even alleviating symptoms and treating certain cancers. Though there haven’t been as many studies and the data is still new, it’s been shown that CBD oil also has the potential to help reduce the frequency of diabetes, aid in treating substance abuse, and possibly even reduce the psychotic symptoms of certain medical disorders.
Only certain CBD products will work:
It’s crucial to clarify here that expertise and know-how greatly impact the quality and purpose of cannabidiol oils, because not all cannabidiol oils are equal. Different strains of hemp plants will produce different effects when the oil is derived from that plant. Not every strain produces the same effects. The quality of the grower’s knowledge and their plants also impact the effectiveness of those symptoms.
When it comes to quality growers and farmers of hemp, Industrian Hemp Partners (IHP) has years of expertise in building and maintaining relationships with those growers and farmers. IHP has been providing customers with high-quality cannabidiol oil since the beginning, back to when there were only 5 major CBD producer brands worldwide. They’ve spent years cultivating relationships with both farmers and customers to the extent that they’ve built a well-established network that includes transactions as large as $30 million at one time, a feat that, at this point in the industry, would be almost impossible to accomplish without serious capital and clout.
How the best CBD Oil is Made:
The process of producing cannabidiol oil can be done in a few different ways. Farmers start by selecting a variety that is high in CBD and that comes from a selected strain of desirable properties. When these plants have grown and cultivated into a viable plant ready for extraction, often done through the process of alcohol extraction. In alcohol extraction, the entire plant is immersed in an alcoholic solution (like ethanol) that draws the cannabinoid oils out of the plant and into the solution. When the alcohol evaporates, the CBD oil is all that remains. Alcohol extraction of cannabinoid oil is actually the original method of extraction, and to this day remains the most common.
An additional method of extraction of CBD oil is the CO2 extraction process, though is more extensive and challenging. In this process, carbon dioxide is forced through the plant, with the use of various chambers and pressure controls, forcing the oil out of the plant. The cannabinoid oil and the carbon dioxide are then forced into a pressure and temperature chamber that separates the two elements, and sends them into separate chambers, thus leaving the producer with the CBD extract.
How a US company moved ahead of the curve:
IHP was clever to position themselves well, as it understood the difficulty of entering this industry. It already specialized in some of the most important services, which includes extraction services. They essentially wrapped up the entire supply chain to become a vital component to other industry players, since they specialize in three other areas: Farming, Selling, and Freighting. It is clear that the process from field to extraction to selling are far too difficult to go at alone, and hemp is a service-driven industry because of the number of steps involved in the entire process. To overcome these barriers to entry, logically those looking to enter the industry opt to partner with a company like IHP, who knows how to help bring them into the industry in an effective and profitable way.
Increasing Production and Usage of CBD Oil:
As stated in the beginning, growing legislation legalizing marijuana across the United States and other countries has subsequently led to an increase in the sale of CBD oil and CBD products. Rising popularity of CBD oil has further increased as people begin to understand the distinction between the oil and THC, and that the oil itself does not produce such psychoactive effects on the brain and body.
This increase in production and acceptance also led to an increase in the research and study of just what cannabinoid oil can be used for. In addition to the medicinal properties previously discussed, the use of the oil has been expanded into other areas. Rich in essential vitamins and minerals, cbd oil has become a recognized nutritional supplement, used as a dietary supplement to increase health and wellness. Not only does it impact mood in a positive way, but it also aids in metabolic functions of the body. It has also developed into a common beauty product because of its ability to fight aging, minimize wrinkles, subdue acne, and improve skin elasticity. The effects of this oil have expanded to serve all parts of the human body.
And yet, with the increasing production comes the increase in companies trying to immerse themselves in the industry. A common mishap for those looking to get into the business includes working alongside companies without reputable brands and reliable products. As an example, sellers from China often struggle from poor reputations and low customer retention as a result of poor-quality products. Chinese hemp has notoriously low potency and is also found to be full of industrial chemicals from nearby trade industries. Issues like this are why companies increasingly turned to IHP, to help guarantee the integrity of their products. Clearly safe and quick entrance into the CBD oil industry is a critical component, where those higher up the supply chain should already have reputable services and great customer-client relationships throughout the chain.
Getting into the Industry:
Many new companies will discover that entering the world of cannabinoid oil and products containing the oil is not an easy feat. Attempting it alone can be a challenge, from certification to quality products to resources and transportation, and all the steps in between. IHP again seemed to be a step ahead, by working to ease interested parties into the industry, with a vast network of connections and years of expanding skill and expertise. IHP positioned itself as the “go to” option for those seeking to enter the industry.
The industry sees many changes on a daily basis: almost all European states have opened up to the idea. Companies are entering via several “ways to market”, including whilte-label, affiliate arrangements, semi-production etc. The question now, is who will lead the global market as it unfolds?