Go Asset Light: A Sustainable Path for CBD Brand Owners

Go Asset Light: A Sustainable Path for CBD Brand Owners

The Evolving CBD Market Landscape

As the CBD market continues its explosive growth, with a projected reach of $56.2 billion USD by 2028, the demand for maintaining high standards in production and regulatory compliance grows ever more daunting. Many CBD brand owners face significant hurdles in sustaining these standards due to the complex nature of manufacturing and marketing CBD products. This challenge is amplified by the rapid changes in market conditions and regulatory landscapes.

Transitioning to an ‘Asset Light’ Model

Historically, many CBD brands took on the responsibility of managing their entire supply chain—from genetics and cultivation to product formulation and distribution. However, this vertically integrated approach began to falter as the economic viability of maintaining such comprehensive control weakened with the collapse of biomass and extract prices in 2021. This led our client, and many others, to reevaluate their strategies and move towards an ‘asset light’ model. Transitioning to an ‘asset light’ model, our client was able to focus on their core strengths: developing their brand and expanding their market reach. This strategic pivot involved divesting from the complex, capital-intensive aspects of their operation, such as cultivation and manufacturing, and partnering with a trusted entity that could manage these components to the highest standards.

Partnering for Success with Vantage Hemp

Vantage Hemp stepped in as that trusted partner. With our large-scale extraction facilities certified to WHO GMP, FDA 21 CFR 210/211, and ICH Q7 standards, we provided a comprehensive solution that covered every aspect of the supply chain. This not only alleviated the burden from our client but also ensured that their products were produced under stringent pharmaceutical-grade conditions, thereby maintaining product quality and compliance for international markets. Our engagement with the client enabled them to seamlessly integrate their SOPs with our operations, ensuring consistency and reliability in product output without the overhead of managing production facilities. This shift allowed the client to concentrate on what they do best—innovate and market their CBD products.

Future Proof Production

The results speak for themselves. Our client has seen multiple successful production runs, maintaining international compliance and preserving the integrity of their product formulations. This has led to increased profitability and market growth without the added stress of managing the intricacies of CBD product manufacturing and compliance. For CBD brand owners who find themselves struggling to keep up with the operational demands of their business, considering an ‘asset light’ approach could be the key to sustainability and growth. By partnering with a reliable, compliant, and technically advanced manufacturer like Vantage Hemp, brands can focus on customer satisfaction and market expansion while leaving the complexities of product manufacturing and compliance to us. At Vantage Hemp, we are more than just a service provider; we are a partner in your brand’s journey towards global success. Let us handle the heavy lifting so you can focus on what truly matters—growing your business and delivering exceptional value to your customers. — For more information on how Vantage Hemp can help transition your CBD business to an ‘asset light’ model, visit our website or contact our sales team. We are here to support your journey every step of the way.
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