Launching a Private Label CBD Product

professionals working

Although still relatively new to the mainstream market, CBD has quickly become a household name. Short for cannabidiol, CBD is one of the compounds produced by hemp and cannabis plants. It offers a wide range of therapeutic and health benefits, which is why it can now be found in a variety of different formats and products, from topical skincare and tinctures to edible items.

Experts predict that the market will be worth around $20 billion by 2025, showing a rapid amount of growth that businesses are clamoring to be a part of. With the CBD market booming so dramatically, now is a great time to get in on the action.

However, launching a CBD product is still not a straightforward journey. This is why many of those who are new to the industry are choosing to go down the private label path as a way to simplify and streamline their route to market. Read on as FLPL explains the various steps involved when launching a private label CBD product.

Why Go Private Label For CBD Products?

You need a certain amount of knowledge to launch any sort of product, but this becomes even more important when dealing with anything CBD-related. There are a number of unique obstacles within the CBD industry, particularly when it comes to legalities.

As we’ll soon discuss, it’s vital for you to familiarize yourself with all of the rules and regulations that you’ll need to adhere to. However, your knowledge won’t need to be quite so in-depth if you’re working with a private label manufacturer. Pick a reliable manufacturer who has experience in the industry and they’ll be able to take control of the legalities. This will save you from having to stumble through these yourself and possibly make some serious mistakes.

Of course, there are a number of other benefits that come from private labeling too. You’ll be able to create unique products without having to know much about the science behind them or the manufacturing processes involved. Risks are lower as well, particularly when it comes to financial outlay. 

Compared to doing everything yourself, private labeling will save you a large amount of time too. After all, you’ll have someone else handling everything from product development and packaging design to manufacturing and logistics. This extra time that you gain can then be put to good use. You’ll be able to focus your attention on the areas of your business that you naturally excel at while leaving the parts that you aren’t familiar with to people who have the right expertise.

Start By Educating Yourself

woman on laptop

Technically, when you work with a private label manufacturer, you could launch a CBD product with very little knowledge of the wider market and industry. Pick a good private label company, like FLPL, and they’ll be able to take charge of several aspects of your product launch.

However, while that may be the case, it’s still always a good idea to have some of your own knowledge as well. So, before you get started, spend some time educating yourself on the CBD business world. Do some research into the various types of CBD products that are currently available and learn about the different extraction methods that are used. Extraction is something that you could do yourself but, unless you have experience in this, it’s best left to the experts.

Get to know the legal landscape in your area too. Due to how new this market is, regulatory pathways are still being established. This means that many of the rules will continuously change. Make sure that you keep yourself informed of these developments. If necessary in your state, apply for a CBD business license as soon as possible. This way, there won’t be any holdups once you’re ready to start selling.

Establish a Niche in the CBD Market

No matter what you may be selling, establishing a niche is vital if you want to stand out from your competition. Fortunately, since the CBD market is still relatively new, there are a number of untapped niches out there that are waiting to be exploited.

To find a niche for your business, start by researching the market and your target audience. Find out what people are looking for and decide on a realistic angle for your business to take. For example, CBD edibles is a rapidly growing sector but is one that’s under some serious scrutiny from the FDA. This could pose some challenges for your business, both now and in the future.

Topical CBD products are also soaring in popularity while demand for CBD aromatherapy oils is rising too. Figure out the type of products that you want to produce, even if you don’t decide on the specifics just yet. This will help you to narrow things down once you start looking for a private label manufacturer to work with.

Find a Reputable Private Label Manufacturer

products factory

Finding a reputable and reliable private label manufacturer can be a bit of a challenge, particularly when CBD is your focus. Ideally, due to the complexity of the legalities within the industry, you need a manufacturer that has some experience creating CBD products. 

A manufacturer that’s transparent with ingredient sourcing and extraction methods is crucial here, especially since CBD laws vary from state to state. The CBD that you use in your products needs to come from hemp, rather than cannabis, plants. Those plants also need to contain less than 0.3% THC. Veering from this may not be an issue in states that have legalized recreational or medicinal marijuana. However, you could run into problems when selling to customers in other states.

At FLPL, we’ve manufactured a variety of topical CBD products for different brands. This means that we have the experience that you need when launching a topical CBD product. We also have very high standards when it comes to the quality of the products that we create. From using FDA-approved facilities to adhering to Good Manufacturing Practices, we make it easy for a business to place their trust in us when working together to produce CBD products.

Create Your Products

Once you’ve chosen a private label manufacturer, you can then work with them to narrow down the types of products that you want to create. This basically involves honing in on the niche that you previously chose.

For example, if topical CBD products are your aim, it’s now time to decide on the specific topical products that you want to make. Perhaps your target audience is seeking CBD-infused face serums, or maybe they’ve been looking for CBD body care products.

Work with FLPL and you’ll be able to choose from a huge range of different topical product options. Whether you decide to focus on just one type of product or you launch a diverse range of different CBD products, we’ll help guide you into making the best decisions for your business.

Once you’ve picked the products that you want to sell, we’ll then start formulating those products for you. We’ll create samples for you to approve, after which mass production at one of our factories can begin. 

Develop Your Branding, Packaging, and Marketing Strategy

women factory

Your branding, packaging, and marketing strategy need to be cohesive in order for your business to succeed. However, when working with CBD products, this is a little tricky. 

Many new brands rely on social media advertising as a way to get their brand known and reach new audiences. However, this is a risky move with CBD products that could result in the closure of your social media accounts. 

Going heavy on the CBD aspect of your products could end up hurting your branding too. It could lead to your products being banned in certain states or on some online platforms. It’s an area where you need to be quite creative in order to showcase the unique selling points of your products while still adhering to industry legislation.

Fortunately, this is something that a good private label manufacturer, such as FLPL, can help with. We have a marketing department that you can work with to develop your branding, packaging, and advertising avenues. Our team will ensure that you’re able to differentiate your products in a way that doesn’t stray from the regulations that you need to follow.

Decide On Your Distribution Channels

Again, the limitations faced by CBD products can make distribution difficult too. You won’t be able to rely on Amazon or other major online retail distributors to sell your products. Most of them are still on the fence about how to navigate the CBD industry. 

The best way to get around this is by setting up your own e-commerce store. This is something else that FLPL can assist you with. This way, you’ll have full control over the selling of your products, without having to follow the ever-changing rules set by large retailers. 

Payment Processing, Banking, and Insurance

There are a few other obstacles that you may face when launching a private label CBD product. The first is in relation to payment processing and banking. Due to how CBD regulations are constantly changing, many banks are hesitant about working with CBD businesses. Some payment processors won’t want to be involved with your business either while others charge sky-high fees to CBD companies.

The same applies to business insurance. Prices tend to be extremely high, even though industrial hemp has been legalized. It can take a while for other industries to catch up with these developments, and insurance hasn’t quite managed to get there yet.

These hindrances can be off-putting for a new business, and this is partly why the market hasn’t yet been inundated with CBD products. However, although all of this may pose a few challenges, it’s still possible to find banks and insurance companies that you can work with – it just may take a little more time than you expected!


There’s no getting away from the many unique challenges that you’ll face when launching a CBD product. These can often seem pretty overwhelming, but working with an experienced private label manufacturer will help you to overcome them. Rather than navigating this relatively new industry on your own, you’ll have a helping hand the entire way, guiding you into making the right decisions and ensuring that you’re following all of the necessary regulations. It’s such a great way to step into the industry with minimal risk, which means an overall greater chance of success for your business!

Interested in launching private label CBD products? Click here to contact FLPL to find out how we can help!

Leave a Comment

Your email address will not be published. Required fields are marked *