CBD Market and Wholesale
CBD is becoming a more and more popular ingredient for many different types of products. Anecdotal evidence of the effects of CBD on muscle recovery and its anti-inflammatory features made this CBD a popular product for athletes, wellness centres and gym studios. You can find CBD balms in massage centres as it not only helps to relax, but also relieves stress and anxiety. CBD infused foods and drinks are sold in various cafes and restaurants. There are also, of course, CBD speciality stores which sell CBD as their main product. Since the start of 2020, a very large amount of the UK population have purchased CBD related products. People in the UK and around the world are becoming more and more health-conscious, and as time goes on and the general public will get used to CBD, the number of people buying CBD products will only increase.
With a plethora of opportunities in the CBD industry already, it is important for manufacturers and retailers to connect with each other. However, it can be difficult for brands and retailers to connect directly. Being good at producing CBD products doesn’t make you good at distributing them. It can be very time consuming for retailers to find and contact the brands. Alphagreen provides a much needed intermediate step between the brands and the brick & mortar shops. Alphagreen allows retailers to choose from over 70 top CBD brands available on our website so that only the very best CBD products appear on our marketplace.
Alphagreen is the biggest CBD retail and wholesale marketplace in Europe which allows retailers to stock different CBD products from the best CBD brands. But Alphagreen doesn’t just offer the CBD products from top CBD brands. We have an exclusive analytics suite designed to help both manufacturers and retailers. This analytic suite provides valuable data on the prices across the whole market. Apart from data on prices, Alphagreen also shows data on how much of each product is being sold and information on consumer transactions. Not only does it save time from the buyer to find all this information by themselves, but also by providing all this data to the buyer, it allows them to make the best and most informed decision on which product they should stock on their shelves. Alphagreen has over 70 partners - this gives the buyer a large choice of the top CBD brands and products.
The analytic suite doesn’t only provide data. Sometimes having raw data alone is not enough to make a decision about whether you should buy products from a brand. Alphagreen also shows the background story of the brand and the story of people behind it, allowing retailers to connect with the brand on a personal level. It shows the process of making each product and a comprehensive overview of the key ingredients and the CBD content. We also provided links to any relevant scientific literature if a product was used in any studies. The CBD industry is a fairly new one and even best CBD brands can lack competence on how to use and sell their products. The analytic suite also includes training bundles which provide ideas on possible product pairing and how said products should be used by the customers. Instead of brands sending its staff to train shop staff, the brand training material is uploaded into Alphagreen’s database and every employee can watch the training material whenever it's most convenient.
CBD History & Benefits
Cannabidiol (CBD) is one of many cannabinoids present in the Sativa plant which was discovered in 1940. Difference between CBD and THC is one of the most searched questions on Google. The main difference between CBD and THC is that CBD is not a psychoactive compound and is, therefore, legal for sale in the UK and the EU.
Cannabis and its derivatives have been used historically for their medical purposes. Cannabis has been used as a medicine since ancient China up until the start of the 20th century when the governments’ opinion started to change. An international drug conference in 1928 in Geneva convinced Great Britain and other European countries to treat cannabis as a dangerous drug and banning its use. However, the discovery of the endocannabinoid system (ECS) gave a chance for cannabis to be used as a medicine once again. The ECS is a biological system with cannabinoid receptors, CB1 receptor being the most abundant one. These endocannabinoid receptors are present in the central nervous system, so the interactions between cannabinoids and cannabinoid receptors have drawn attention as a possible treatment of different conditions.
In medical trials, CBD has shown many positive and optimistic results. It has been shown that CBD is an effective treatment for chronic pain, Lennox-Gaustaut syndrome, insomnia and inflammation. An independent meta-analysis of multiple clinical trials of CBD for chronic pain was done to summarise the results of those studies. The conclusion of this meta-analysis was that there is “substantial evidence encouraging its use in pharmacotherapy of chronic pain”. Another study researched the effect of CBD on adult patients with anxiety and poor sleep. Within the first month of CBD usage, the anxiety scores decreased in 79.2% of patients and remained decreased for the rest of the study. The sleep scores improved for 66.7% of the patients. CBD also proved its effectiveness in extreme cases with the National Cancer Institute reporting that CBD has reduced cancer symptoms and disease severity. One thing that we need to keep in mind is that the mechanism of action of cannabinoids on a human body is not fully understood by the scientific community. As the science progresses and more clinical trials will be run, the researchers are likely to find more applications for CBD and validate the ones already known.
The population of the UK is becoming more health-conscious and the health benefits of CBD is one of the main reasons why the industry hasn’t experienced a catastrophic financial crisis like other industries during the pandemic outbreak. In fact, The Times has reported that Britons have stocked up cannabis to cope with the effects of COVID-19.
What Products Can You Buy At CBD Wholesale?
We offer a large range of CBD products on the Alphagreen wholesale platform:
- CBD oil and tinctures
- CBD capsules
- Skincare such as balm, lotions & creams
- CBD sprays
- CBD-infused beverages
- CBD-infused chocolate
CBD oil is by far the most popular type of CBD products. There are several ways of extracting CBD oil from the hemp plant. The best and also, sadly, the most expensive one is CO2 extraction. This method provides a clean and precise extraction with little contamination present in the oil extracted. Liquid CO2 is heated and pressurised so that it reaches a ‘supercritical’ state. The equipment needed to exert high pressure and to keep the high temperature so that CO2 stays in its supercritical form is costly which is one major downfall of this method. In this supercritical state, the CO2 possesses properties of both gas and liquid. The supercritical CO2 is then passed through the hemp extract. This causes the oil to separate from the plant. Then the CO2 is evaporated away leaving CBD oil with a purity value of as high as 92%. CBD oil is available with different potency levels and is usually diluted with the following oils:
- MCT oil
- Coconut oil
- Hemp seed oil
It is important to use CBD oil correctly for it to benefit your body. If you have been prescribed CBD oil by the doctor, it is vital to strictly follow the instructions and not exceed daily dosage. Usually, CBD oil is taken orally by placing a few drops under the tongue up to 3 times a day. The oil should be left for about a minute before swallowing.
The main difference between CBD tinctures and CBD oil is that in tinctures the CBD is suspended under 60-70% distilled alcohol. The presence of alcohol makes tinctures more bioactive when compared to CBD oil. Sweeteners are usually added to tincture to boost the flavour, but they also lower the CBD ratio in the product. Other chemicals and substances that are also often added include:
- Vitamins (B12, D, C)
CBD capsules can come in two distinct forms: either as softgel capsules filled with CBD oil or as CBD isolate which is a powder-like substance. CBD capsules are absorbed by the human body in a different and slower way compared to the oil. When CBD oil is put under a tongue, it is absorbed straight into the bloodstream while the CBD capsules have to go through the digestive system first. This makes the absorption of CBD a longer process and makes CBD capsules a great choice for those who want to experience the effects of CBD gradually. CBD capsules also provide a tasteless option for people who dislike the oil’s distinct, earthy taste. Apart from that, the capsules can’t leak out, making them a perfect choice for travelling.
CBD products that are applied directly on the skin are becoming more and more popular. They can come as balms, lotions, creams and sometimes even plasters. In 2015, a study was done on rats to see the effect CBD gel has when applied directly on the skin. The results showed that the CBD gel has significantly reduced the joint swelling. This makes it a great option for people with diseases similar to arthritis. Also, CBD balms can produce an anti-inflammatory and calming effect on the area where it is applied making it useful as a treatment for sport-related injuries. CBD balms have all-natural ingredients like essential oils which not only add aroma but also have specific healing effects.
A lot of the time, CBD sprays are tailored to a specific consumer by adding extra supplements that can help a user with a particular condition. Same as with CBD capsules, CBD sprays are a great option when on the road and can be easily used outdoors and indoors.
Edibles such as CBD infused chocolate are a great way for first-time users to try out CBD. Most customers are used to eating chocolate as a sweet treat, hence it will be comfortable to incorporate CBD into their routine. However, customers need to keep in mind that CBD infused foods take about 2 hours to be digested so they must be careful not to accidentally overdose.
CBD infused beverages are becoming increasingly more available in various cafes, restaurants and cocktail bars. The benefit of adding CBD to drinks like coffee is that they reduce the negative effects like the relentlessness and bowel problems. Furthermore, similarly to CBD edibles, it is an easy way to incorporate CBD into one’s morning or night routine without sacrificing the taste of a delicious drink, be it your morning coffee or a CBD-infused chamomile tea before bedtime.
Vape juices containing CBD are also available on Alphagreen’s wholesale marketplace. Smoking allows CBD to enter the bloodstream right away, making the user feel the effect of CBD much faster than with other methods. However, users need to be wary of potential side effects of vaping as the researchers are unsure about its safety as there is proof that this method may lead to adverse effects on one’s lungs.
If you have any questions on the availability of the product or any other general enquiries - you can contact [email protected] or use our intercom chat on the website.
CBD Market and Potential
Many experts see similarities between the CBD market today and the tech industry in the 90s due to its potential. CBD industry is expected to grow at a rate of 31.90% between 2020 and 2027. The Brightfield Group forecast the CBD market to reach $22 billion by 2022 while the whole US organic food market should hit $70.4 billion by 2025. The expectations for CBD market growth are not only limited to North America. The CBD market in Europe is forecasted to grow by more than 400%. But what about COVID-19? The coronavirus outbreak has not only impacted the health of people across the world but also the economies. The British economy was not an exception and saw its GDP fall by 5.8% in March 2020 first and then a whopping 20.4% fall in April - the highest fall since 1997, when monthly GDP was started to be recorded. PwC, a Big Four consulting firm, predicts the UK GDP growth to be somewhere between -8% to -12% for the rest of the year. Lots of sectors saw a dramatic decrease in size with foodservice, hotels and transport sectors shrinking by 15% to 25%. So how badly has the CBD industry been affected? The data collected on British CBD market can show very surprising results. LM Research Consultancy (LMRC), a Market Research Society approved partner and an ESOMAR corporate member, has conducted the largest unweighted CBD survey in the UK to date. To provide an unbiased data set, it has outsourced analyses to objective experts. Five thousand randomly selected participants were used in this survey. The results were as follows. Interest in CBD products has doubled since March 2020 - we expect to see an increase in traffic coming to Alphagreen. 57% of the users have only started buying CBD products in the past month. Data also showed that CBD sales have reached over £150 million in 2020 so far. If the sales continue to be generated at this rate, the UK CBD market is set to increase from £300 million in 2019 to £450 million in 2020 with potential upwards of £465 million. To put these numbers into a perspective, the CBD industry is still in Stage 1 of the Product Life Cycle (PLC) framework due to a lack of regulatory legislation. Currently, CBD is trying to transition from Stage 1 to Stage 2, and according to Rogers’ Diffusion of Innovation (DOI) model, only 2.5% of the population should be buying the product. This does not align with the findings by LMRC which have shown that 7.8 million UK adults (15% of the population) have purchased CBD products in the past year. So what is the reason why the CBD industry is outperforming other sectors in such tough economic times? These findings can be rationalised by how the coronavirus outbreak and the subsequent lockdown have affected the people. All the factors surrounding the pandemic have led to elevated levels of anxiety and stress which in more severe cases can lead to depression. This has led the consumer to CBD products which have been proven to help in these cases. The findings by LMRC support this hypothesis as the majority of consumers report that they use CBD for pain management, insomnia and anxiety relief.
Apart from showing a lot of positive signs, findings also have shown places where there is still room for improvement. The general public still doesn’t have a full understanding of what CBD is. 59% of adults in the UK are unsure about the differences between cannabis, medical cannabis and CBD. This can be explained by the fact that 55% of respondents also believe that there is not enough information on CBD products from respectable sources. Brans should give a clear and unified message on the benefits of CBD on their websites and also provide links to reliable scientific studies.
The potential growth of the CBD industry very much depends on the legislative landscape of cannabis. CBD products fall under the food supplement category and are subject to strict safety guidelines imposed by the Food Standards Agency (FSA). The FSA is an independent government department with headquarters in London and offices in Birmingham, York, Wales, and Northern Ireland. The Agency was formed in 2001 after an outbreak of illnesses and deaths from contaminated foods. The FSA operates across all of the UK apart from Scotland, where in April 2015 its own government department was established by the name of Food Standards Scotland (FSS). On the FSA website, they state that their role is to protect public health and consumers’ wider interests in food across England, Wales, and Northern Ireland. Since January 2019, CBD products are considered novel foods and FSA takes responsibility, ensuring that the novel foods are safe for the general public to consume. The FSA defines novel foods as foods that have not been widely consumed by people in the UK or EU before May 1997 - they don’t have a ‘history of consumption’. Whether it is right to consider cannabis and its derivatives as novel foods is a whole other argument, but for now, it is what it is. In February 2020, the FSA issued its first safety advice on CBD products and set a deadline of March 31, 2021, for CBD brands to submit valid Novel Foods Applications. After this deadline, only products with legitimate applications approved by the FSA will be allowed on the UK market. The main issue of CBD being listed as a novel food for companies is that they must go through a long marketing authorisation process before being able to sell their products again in the EU and UK. However, despite this, CBD products are considered legal. As of 2020, the Medicines and Health Products Regulatory Agency (MHRA) in the UK considers CBD compounds and its various derivatives and other by-products of industrial hemp fully legal for sale across the UK. The main rule that must be followed in order to buy and/or import CBD products is that they must have a THC level of less than 0.01%. Companies must keep in mind that each EU member state has its own laws regarding CBD, which can be harsher than in the UK.
There is still work to be done in regards to transparency and clarity of the regulation of CBD. There are a lot of grey areas which make it difficult for companies to operate in the current regulatory environment. In November 2019 in London, a membership organisation was launched in order to help CBD companies to navigate the waters. Association for the Cannabinoid Industry (ACI) states that its goal is to nurture a safe, legal and well-regulated CBD market in the UK. The ACI team is experienced in both cannabinoid chemistry and regulatory questions surrounding the industry. The ACI provides consultancy services which help the companies gain Quality Management System (QMS) certification and get their novel foods application validated and authorised by the FSA and/or EFSA. The ACI also keeps companies up to date with the legislation situation surrounding the industry by constantly being in an active dialogue with the main regulators: FSA, FSS, Home Office, MHRA, and EFSA.
The legalisation of cannabis as a whole might seem irrelevant because as mentioned above CBD is legalised in most countries. But the reason it is important is that there is still a stigma associated with cannabis and its derivatives, including CBD. As more and more countries become more tolerant towards cannabis and its recreational use, the size of potential CBD customers will increase. Since CBD is not a psychoactive compound it is likely to be the first cannabis product previous non-users will be willing to try.
How to find good CBD brand and supplier
The potential of this industry to be one of the biggest in the world is not the only similarity experts see between the CBD industry and the early tech industry. The CBD industry is far away from maturity and there is a clear oversaturation of companies which was also present in the tech industry in the 90s. A report by CBD Intel in February 2020 showed that there are about 700 CBD brands operating online in the UK. But our own database contains more than 1,500. There are clearly too many non-certified ineffective products present in the current market. Also, even the best CBD brands have not yet established a loyal customer base. Right now, price and consistency of the product are the main factors influencing the decision of the customer whether to buy a certain product or not. If the company wants to become a top CBD brand it must focus on specialisation so that their brand name becomes synonymous with specific customer needs.
The products that the company makes and its structure might not be enough for retailers to be convinced if they should work with this brand. Retailers should look at who is standing behind the company: is there a blend of deep domain expertise and experience? Do they have success in their previous entrepreneurial adventures?
For retailers, it can be very time consuming and difficult to find all the information on the products that a particular brand makes and the people who work for them. We at Alphagreen have realised that and decided to give brick & mortar shops a helping hand. Alphagreen platform does not only provide access to the products from the best CBD brands but also has loads of valuable features. We will show the buyer the prices across the whole CBD market, work out for you who offers the best rates, what’s the average going rate, and other important information to ensure the buyer makes an informed decision.
How Much Can You Make Selling CBD?
Here at Alphagreen, we have negotiated market-leading wholesale rates for all the products available on our platform. We can deliver retailer margins of up to 50%!
Get In Touch!
CBD industry is a young and vibrant industry with loads of potential. Experts expect big things from this industry and many believe that the legalisation of the recreational use of cannabis is inevitable in the next 10 years, in Europe and North America. Right now is the perfect time to add CBD products to your shelves to capitalize on the low level of competition due to the lack of maturity of the industry.
Alphagreen’s marketplace is a great source of CBD products from the best CBD brands. As the retailer, you can easily find a product that is a perfect choice for your business by utilizing various filters available to you on the website. You are bound to find a product which is just right for you.
If you are a CBD brand reading this article, we are always looking for more CBD brands to be placed on our website. By working with us, you won’t have to worry about finding the retailers yourself and instead will be able to focus on your main business operations.
No matter if you are a CBD brand or a brick and mortar shop we would love to tell you more about our business and work with you! You can get in contact with us by emailing [email protected] and we will be looking forward to hearing from you!