The cannabis sector is growing by leaps and bounds, and some say the marijuana industry will grow in the 2020s at the same pace as the internet in the 1990s. Cannabis regulation in different countries brings major CBD and cannabis business opportunities that many do not want to miss, and many entrepreneurs are setting up cannabis businesses. But we must not forget that cannabis spans many sectors: food, medicine, agriculture, textiles, construction, finance and pharmaceuticals, among many others. So before taking any step, let’s think. What type of business do you want to invest in? In which countries is it safest to do so? Which is the most profitable? We help you shape your cannabis investments according to your needs and goals.
What types of cannabis-related businesses can I set up?
Within the cannabis industry there are many possibilities for setting up different businesses. Some of them do not require extensive training in cannabis, although they do require proper legal advice. We recommend starting in the industry with safe, low-risk cannabis businesses such as vaporisers, cosmetics, food supplements and hemp-derived food products. Growing and selling cannabis itself, entering the medical cannabis business, producing and selling seeds or selling extracts are all businesses that require significant knowledge of cannabis, agriculture, law and pharmacology. So if you are going to start a cannabis business from scratch and do not have much previous experience in the sector, we recommend starting with some of the following businesses.
Vape pens or vaporisers
Vaporisers are the new alternative way to consume marijuana: a healthier and more discreet option. Traditional combustion has become outdated, and electronic devices that heat cannabis without burning it are now the fashionable healthy alternative. Vape pens that use oil cartridges with cannabinoid extracts are also a new way of consuming cannabis that is gaining ground in e-commerce and tobacconists. Although they are intended for cannabis use, there is no contact with the plant in this electronic devices industry.
Cosmetics
Cannabis has burst into the cosmetics industry, and hemp oil and CBD are now common ingredients in many beauty products. Without getting into production, distributing these new ointments can be very profitable, given the loyalty customers are showing thanks to the effective relaxing and moisturising properties of these new creams.
Food supplements
CBD-based food supplements are an emerging but still immature market in Europe. Cannabidiol in Spain still cannot be sold for human consumption because it is not classified either by the Spanish Agency of Medicines (AEMPS) or by the Spanish Food Safety Agency (AESAN), if we stick to its intake as a food supplement. In addition, at EU level these products would also have to be registered with EFSA (the European Food Safety Authority), and these applications to the European Commission are being processed very slowly given the huge number received. Get proper advice before embarking on a cannabis food supplement business.
Food / edibles
Foods made from hemp seeds (those not intended for sowing) are new foods in high demand. Hemp seeds, flours and oils have reached grocery shops to stay, especially those that prioritise organic and healthy diets. In Spain, as long as the plants have THC levels below 0.3%, there are no legal problems with selling them. And given the high amino acid levels of foods derived from hemp seeds, more and more people are adding omega 3 and omega 9 to their diet in this plant-based, protein-rich way.
Why invest in the cannabis sector?
The cannabis sector is an emerging sector with many industries still to develop. As regulation advances in different countries, this new market is taking shape and competitors are still forming. As the early bird catches the worm, players already in the game are growing faster and more strongly in the cannabis sector than in other sectors. The cannabis market is a new sector that is growing a lot and very fast. That is why it is a good time to invest in marijuana.
Factors to consider when starting a CBD or cannabis business
Investing in cannabis businesses requires specialist advice given how recent the regulation is. Cannabis laws are changing rapidly and in many cases regulation is too sparse to take firm steps without fear of getting it wrong. So, to invest in cannabis businesses, whether in the cosmetics, agricultural, pharmaceutical or food industry, study the cannabis regulations carefully wherever you want to operate to make your investment pay off.
Setting up a cannabis business can be more lucrative than setting one up in another sector, but it can also carry more risks if you are not properly advised. That is why we recommend that you talk to a specialist lawyer before taking any step.
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Do you need legal advice?
At S&F Abogados we specialise in cannabis law. Find out about our services for cannabis businesses, send us an online enquiry or call us on +34 919 532 802.
