September 26, 2019 / 01:00PM / Content By Sarah Williams / Header Image Credit: Business Matters
The average day in the investment world features a mix of gains and losses, with a net change measured by the various indices. Dramatic gains are rare.
Every so often, though, a new market emerges that creates real opportunity for investors and entrepreneurs alike. The combination of factors it takes to create these opportunities is unique, but it is easy to recognize this happening the CBD industry. If you're considering investing in the industry, take some time to study these characteristics and understand why they represent such a great time to get involved.
1.Our Health Matters
Consumers today are more in touch with their health than ever before. The market for preventive treatments and natural cures is strong, with plenty of room for additional growth in the years to come. Products like CBD that cater to those needs will always have a place in the market, making them a strong investment for long-term growth.
2. New Industries Are Greener
How might the energy industry look today if it had developed after environmental regulations were established? Any industry that is really taking off today has a big advantage over older sectors because it is building its infrastructure and processes in the context of governments and consumers who are more environmentally conscious.
3. Versatility Counteracts Instability
What makes investing in CBD oil very interesting is perhaps the versatility of CBD products on the market. This wide variety of uses not only makes it a strong sector when the economy is good, it also helps to insulate the CBD market from downturns and corrections by maintaining sales in recession-resistant sectors like health care.
4. Untapped Potential Helps Create Growth
The list of applications for CBD is long, but the most exciting fact for an investor is that we haven't even scratched the surface of what may come in the future. The rapid relaxation of regulations and the corresponding surge in university and private research is opening countless opportunities to develop new applications for CBD, a recipe for long-term investment value.
5. Everyone Is Rowing The Same Direction
Many industries are fraught with conflict, with some firms pushing one way and others trying something completely different. The result is chaos in the market, as well as in regulatory action by the government. It creates a gridlock that makes it difficult for the industry to move forward. CBD is moving rapidly because everyone is on the same team, working to develop and market products quickly and efficiently.
6. Government Support Matters
Sometimes the pressure from consumers is high enough to convince the government to make changes. The CBD industry has grown rapidly because elected officials and regulatory agencies have been accommodating, knowing that the public truly wants to see greater availability of these products.
7. Natural Products Thrive
of the benefits of CBD products have been the impetus for major research in the
pharmaceutical industry. Yet the long process of getting approval to place
those products on the market has created such high costs on the front end that
the final product is sold at an astronomical cost--if it ever reaches the
market at all. Natural options like CBD bypass this complex process and start
reaping benefits sooner.
8. The Business "Fit" Matters
Some products are so different from everything else on the market that no company knows quite how to handle them. The innovation must then wander through the industrial landscape, looking for a home to develop and promote it. The other option is an inefficient start from scratch. Many of the applications for CBD pair perfectly with existing enterprises, making it easy for them to get onto the market.
9. Global Consistency Helps
One of the great impediments to investment growth is the differences across international borders. Products that easily pass through customs and can be marketed similarly around the world will always perform better than those that are sold with a side order of red tape. The shift of the US toward a more CBD-friendly attitude will go a long way toward facilitating the growth of CBD worldwide.
10. Having Multiple Outlets Matters
It is one thing to have a product you can sell to the consumer. It's another to have one that also sells well to other industries. The ability to market CBD as an additive to countless other products makes marketing, packaging, and advertisement much more efficient, broadening profit margins and building an even stronger industry.
Choosing the best options for growing your money is a challenging process. There are so many choices and so much information that it is hard to know what to think about any one industry. Setting aside all the other noise, remember one simple point: Investments of any kind require the right context for growth. The CBD industry has the right things in place to position investors for strong returns in the long term.