Competitive Analysis: Hemp Oil Industry

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I would like some competitive analysis on the Hemp Oil industry

In order to counter the stigma surrounding hemp, most high-quality sellers of hemp-based products have invested heavily in scientifically proving its benefits. The most successful high-quality hemp-oil producers offer their product in many distribution methods (tinctures, balms, pills, pastes, candies, etc.) and through multiple platforms online and in stores. As per the request, we have identified four key competitors to Populum and completed a competitive analysis on them.

Methodology

In order to determine producers of premium CBD containing hemp oils, we collected data lists on the hemp oil market. The final list of competitors came from a comparison based on market share, size, trends, value, and customer reviews. These six lists (sources 2, 3, 4, 9, 11, 13) were then cross-referenced to find four companies that were common to most of the lists. The inclusion of these companies is based on the assumption that presence in the lists entails prominence, market value, large customer base, and value. Source 11, "The Best CBD Oils for 2017" directly confirms these four companies as competitors for Populum.

CV Sciences with PlusCBD

CV sciences produces multiple supplements, but its PlusCBD has been growing especially quickly. It has gone from selling in 400 stores two years ago to 1300 stores today. Beyond that, CV Sciences maintains a website to increase their products' availability. The company is focused on research into the benefits of hemp-based CBD oils and offer their product in tinctures, balms, sprays, capsules, and bulk CBD. CV Sciences follows a quality-conscious imperative with organically grown hemp, third-party quality assurance, and "Seed to Shelf" traceability. They keep their prices competitive at $37.76 for a 1oz bottle with 250mg of CBD and $80.96 for a 2oz bottle with 750mg of CBD. Through their investment in multiple methods of delivery, widespread distribution, and online presence, CV sciences has a large target audience. Its competitive prices and high level of accountability throughout their production process make them attractive to those seeking relatively cheap, high-quality oils.

endoca

Endoca is a manufacturer with a global and online presence. Although Endoca has a presence in America, it is most noteworthy in its global reach and its prospects for future growth into 2021. It shines in its philanthropic bent, making it an attractive purchase option for charitable buyers. Endoca has a namesake foundation that works on various social projects including a fund that provides CBD oils to sick children with parents whom could otherwise not afford it. Like CV Sciences, Endoca offers CBD oils in a variety of delivery methods and breaks down each method on its website to help customers determine which would work best. Endoca uses only certified organic hemp and its products are tested in third-party laboratories.

Medical Marijuana inc. with rsho

Medical Marijuana Inc. sells award-winning CBD hemp oils that are available to purchase online. Their sales of hemp-based CBD oils reached $65 million in 2015 and today lead the market with $800,000 in monthly CBD sales. Medical Marijuana INC mainly sells its hemp oil in the form of RSHO (Real Scientific Hemp Oil), a product of HempMeds which is a subsidiary company. RSHO targets parents, first responders, competitive athletes, and customers who need a THC-free tincture. Although the RSHO maintains a website, its products are only purchased through HempMedspx.com. RSHO is one of the first mainstream CBD oils, is legal in all 50 states and 40 countries, and is even subsidized by the government in Brazil and covered by health insurance.

nuleaf naturals

NuLeaf emphasizes a pure product. Their target audience is those who want a simple product that they can count on as being both customer supported and authentic. Upon request, potential customers are offered "Certificates of Analysis" which show the products' purity through testing for more than 200 contaminants. Nuleaf grows its oil from cloned plants, ensuring a standardized chemical profile.

Conclusion

When it comes to positioning in the market, all four of these companies and others on each of the lists have a similar marketing strategy to pharmaceutical companies. High-quality, hemp-derived CBD oil producers generally want their buyers to know three things about their products: that they are pure, that they are produced sustainably, and that they will deliver certain scientifically proven results. They position themselves as science-based, health-conscious, and professional companies. These values reflect the values and misgivings of the hemp-oil market and should be emphasized in any rebranding.
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