The Top 3 Wins for the Hemp Industry in 2019

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For the hemp industry 2019 was a noteworthy milestone. The first full calendar year since the updated 2018 farm bill. This year saw swarms of hopeful entrepreneurs rushing to find a high-quality hemp-based CBD manufacturer

But the hemp industry still has a lot to overcome now that hemp is no longer a Schedule I substance.

Figuring out the right way to regulate hemp is like Goldilocks trying to find the right fit in a house where nothing is just right. CBD manufacturers are doing everything they can to follow regulations.

Because hemp is used across many industries, different regulating bodies have to create brand new guidelines.

First big win for the hemp industry in 2019…

US-Based Hemp Manufacturer

When the 2018 Farm Bill passed the industry waited to see how the FDA would respond to already booming CBD sales.

In some states, CBD was already being passed around like mustard on the 4th of July. With mainstream retailers entering the industry its no wonder you saw a bottle of CBD lotion in your grandma’s bathroom.

The FDA’s warning letters to some of the most visible direct-to-consumer CBD brands were hit with letters that would turn the most stoic legal departments’ hair turn white.

Warning these companies to set a precedent for who the FDA will be going after in the CBD hemp industry.

Wild, unsubstantiated claims are the FDA’s main target. They know the market is being flooded with low quality or even potentially dangerous products.

As of now, the FDA has only approved one CBD pharmaceutical. Epidiliox will continue to cause a paradox in the regulation of CBD.

Because of Epidiliox’s classification as a drug, it can not be added to food. So what does that mean for the rest of the industry’s buffet of CBD-laden treats?

Once again hemp products face some legal gray area. Because hemp has been used as a food source for thousands of years, many argue that hemp precedes regulations handling it as a drug.

But isolated CBD is somewhat of a modern feat. Our ancestors sure weren’t using multi-million dollar facilities to filter the CBD from their hemp crops.

This clash of old-world wisdom with new world regulation is argued about by some of the world’s leading legal minds.

It’s no wonder the last few decades have seen regulations move back and forth, giving and taking freedoms on a case by case basis.

Hemp Industry 2019: Still Has Room to Grow Exponentially

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The world of industrial hemp complications is like an iceberg. We’ve only started using hemp to its full potential in the past few years.

With regulations and standards for industrial hemp much lower than those raised for CBD, farmers can grow it at a faster rate for cheaper.

But what about the future of consumer CBD products? If you’ve been looking into expanding into the CBD space you’re nowhere near too late.

Leading market research firm, BDS Analytics, predicts a 125% compound annual growth rate.

That means exponential growth for many years to come. Every day you wait to enter the market is another dollar handed over to the competition.

The Right Manufacturer For You

Finding a great US-based hemp manufacturer is the biggest challenge when it comes to starting a new CBD brand.

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And as brands are already finding out, customer experience is what really adds value. A good U.S.-based CBD manufacturer 

Consumers want advice on how much to take and when. They’re looking to hemp-based CBD product manufacturers and brands to tell them this information.

Especially with the FDA cracking down on health claims, CBD brands need to redefine the mission of their brands.

Rather than declaring it some kind of panacea, the best selling CBD brands work with their customers to find out the appropriate amount they should be taking.

Seed Supply Skyrocketing

American hemp farmers quadrupled their crop sizes in 2019. With so many registered cultivators, seed supply is starting to look good.

Shortage of quality seeds hit some newbie farmers hard this year too, though. Smaller farmers are the ones hit hardest by bad crops and growing seasons.

Just looking through previous years of hemp production you can see the market correcting years of overproduction and price drops with dramatically decreased production in the following years.

But many industry experts say that supply is outgrowing demand at a steady rate. Does this mean there isn’t room for new brands to enter the market? Of course not!

First off, the growth of supply over demand is coming from the bottom of the supply chain, mostly hitting farmers in the wallet.

Like many commodities before it, the hemp industry is realizing the real money to be made lies in marketing private-label products.

Marketing Hemp-Based CBD Products 

Private Label CBD Manufacturer

You can drink water out of the faucet in most parts of the U.S., but a bottle of Fiji water can cost up to $6.

The same principle applies to the CBD industry. Celebrity endorsements, like Kim Kardashian’s alleged love of her CBD face cream, will be the norm in CBD marketing.

But just like Mrs. Kardashian-West’s overpriced beauty products, consumers care more about connecting with the products they are using than simply having access to them.

The reason farmers get hit so hard by wavering hemp prices is that they don’t have the brand power that retailers making direct contact with their customers do.

They don’t have a marketing team calling up Kim K’s pr team for a sexy photoshoot. Most consumers don’t even realize they’re favorite brands aren’t actually manufacturing their won products.

Even when they do, perceived value is everything. With major retailers, like CVS, carrying topical CBD products a whole new demographic is being reached. Your grandfather who had never heard of CBD until he started buying an infused hand salve is now a loyal customer.

Your old college roommate managed to bootstrap their own line of CBD products created just for new moms. CBD is no longer an experimental ingredient left to fringe hippie types.

Your mom, coworkers, and friends are all being bombarded with advertisements for CBD-infused everything.

The Hemp Industry Is Going to Keep Winning Throughout the Next Decade

2019 was big for hemp. But we’re still at the start of the race. The hemp industry has room to grow in many different industries.

It’s like a little octopus trapped in a jack in the box. Once its out and can stretch its legs, there are no limits to the parts of the ocean the little guy can reach.


If you already have a direct-to-consumer business model in place, you’re a few steps ahead of other players waiting to cash in.

Like many commodities customers are willing to pay a premium to buy from brands they trust.

So how can you be sure your working with the right manufacturer whos choice of seed you never have to second guess?

Some manufacturers source their raw materials from farms across the world. Spring Creek Labs is different.

It’s impossible to have full control of your product without owning the means of production.

Every bottle of CBD gummies, CBD lotion, or CBD capsules never passes through the hands of some other company looking to make a quick buck. It’s a completely vertically-integrated private-label hemp manufacturer.

They’ve invested millions into their operations, saving you the time and money of doing it yourself.

You’re not just getting a supplier, you’re getting access to one of the most well-equipped private label hemp manufacturer facilities in the world.

So why wait? There is big growth but it won’t last forever. Email Spring Creek Labs, the best private label CBD manufacturer, for a no-obligation free quote.