With the exponential rise in demand for Kratom Products, more and more businesses are sprouting across the United States, prompting people to invest in the lucrative industry. The article will shed light on the reasons, ways, and whether it is even beneficial or not to invest in the Kratom business?
The possibilities of growth and expansion in the herbal industry are endless. Thanks to the passing of the U.S. 2018 Farm Bill. Kratom and Cannabis products are sweeping the nation. More than anything else, it has been ascertained that Kratom products aren’t going away anytime soon. Today, the Kratom market stands as one of the fastest-growing segments of the economy.
In 2016, the industry was worth between 1.2 to 5 billion dollars, according to an estimate made by the Botanical Education Alliance (BEA).
The report issued also stated that there are around 3 to 5 million Kratom users in the U.S. alone.
So what does this dramatic surge in the demand and industry growth propel? Investments, of course. There is a significant uptick in the number of people interested in investing in the profitable Kratom Industry. Indeed a lot of them have witnessed a great return on investment. Want to become rich? Here is how you can too get involved:
The Current Market Scenario at a Glance
The modern Kratom Landscape mostly relies on online brands and vendors instead of physical retails or sales. In fact, it won’t be wrong to say that Kratom products are one of the hottest merchandise in ecommerce, with an estimated annual market of 207 million U.S. dollars in 2016. What had remained under the radar once is now splashing across social media. Thanks to the incessant efforts and endorsements by fitness gurus, influencers, celebrities, sellers in the Instagram Economy, and scores of subreddits on Facebook, spreading the gospel of the miracle plant.
Reasons To Invest In The Kratom Business
It is natural to have second thoughts before spending your hard-earned on anything. Is the Kratom business even a legitimate business? Is it even worth investing and so on? So, while the field is still unsaturated, why not give it a try and earn on your investments.
Hold uptight! Here are the absolute reasons why you should be investing in Kratom business!
1- The Unrivaled Popularity
It is amazing to see more and more people across all generations, gender, age, culture, and society welcoming the use of Kratom in their wellness regimen. It has replaced coffee as the everyday morning ritual drink in the lives of millions of Americans. Plus, there is an increasing awareness about its diverse uses and various ways of consumption. As such, the plant boasts an enormous capacity to grow.
2- The Vast Kratom Familia
Kratom is not just a mere leave of a tropical tree. Rather, it is a powder, a capsule, an edible, a gummy, and an extract coming in an impressively vast range of strains based on their origins. Each strain boasts three to four vein colors producing distinct effects such as Yellow Maeng Da, Green Borneo, White Thai, Gold Malay, Red Horn, etc. So, technically there are scores and scores of Kratom varieties falling under the umbrella giving rise to innovative offerings.
3- The Diverse Uses
People LAAAV Kratom for its multi-purpose benefits! And, there’s nothing that can stop them from using it. They love it for increasing sociability, elevating energy and concentration levels, enhancing sexual stimulation, combating fatigue, regulating sleep patterns, and much more! So, get on the bandwagon and get a strong fan base.
4- Intensifying Research
Another reason to believe in the future of Kratom is the increasing research on the plant. Notable Government agencies such as FDA, DEA, NIDA, and National Institutes of Health have vehemently recognized its immense potential. They have joined hands with the scientific and research communities to study and explore the plant comprehensively. For instance, In 2018, the University of Florida College of Pharmacy received a 3.5 million grant from the National Institute on Drug Abuse to execute research on Kratom’s potential for opioid addiction.
More than anything else, this reflects their willingness to embrace the stigmatized plant and disseminate valuable information. And, the time when you see more kratom businesses licensed by the Department of Agriculture is not far.
5- Involvement of Other Industries
Do you know many markets and consumer goods are orbiting around the kratom industry in a bid to include this as a base ingredient?
When Kratom was sold only in a handful of herbal shops, barely a few special dispensaries have rolled up and disappeared. As the experiments and research on Kratom and its compounds have gained traction, many industries, including cosmetics, foods, shakes, drinks, and oils, see great opportunities to earn. Consequently, they devise strategies and cunning ideas to infuse Kratom in their range and flaunt great investment returns.
6- Kratom is Safe
Gone are the days when Kratom was deemed a harmful and ineffective substance. Modern scientific research has time and time again proved that Kratom is safe and effective for a whole lot of medical conditions, and people are using it as a viable treatment option for common daily health problems.
Just in case you have come across any Kratom-related deaths, then let us clear out. The allegations and accusations were outright baseless, as in all such instances, the victims were reported to have consumed Kratom alongside other harmful and potent drugs. So, far there has been no verifiable death caused by Kratom alone.
7- Kratom Is Legal
There are numerous pleasure substances with an explosive demand and insufficient supply. However, most of these are illegal.
Did you know in 2016, the FDA’s attempt to temporarily list Kratom as a Schedule 1 Drug received a severe backlash forcing them to take their decision back? This is an uplifting turn indicating that the public will not tolerate any unfair legal restrictions and will pressurize the authorities as long as they need be.
Fortunately, Kratom is that miracle commodity that is legal at the Federal level though some States have chosen to regulate or ban the use. Thus, it can be sold, purchased, and possessed without fear of risking indictment or sending you behind bars.
Besides, just a couple of countries where Speciosa’s use is penalized, such as Canada, Korea, Finland, Switzerland, the U.K., Russia, and others.
And you know why? Not because of any safety reason. Albeit, because of the tough competition it can give to their well-established opium trade.
8- High-quality Kratom Is The Norm
That’s plain logic. Superior quality Kratom means a higher price that equates to a greater percentage in profits. Hence, the growing inclination towards using the best quality Kratom will make your investment worth more money.
9- Shift to Bulk Purchases
Perhaps one of the greatest transformations is the boom in Kratom’s bulk purchases and wholesale. And that’s what the beauty of Kratom is. You can buy it in bulk to stock up a month’s supply or party with friends.
Bulk buying is a win-win situation for both the seller and the buyer- where customers benefit from cheaper costs and discounts, and vendors can simultaneously cut down on packaging, transportation, testing, manufacturing, and so on. This will ultimately translate into a steady revenue stream.
Ways to Invest in Kratom Industry
Here are a few ways to enact your Kratom Investment:
1- Investing or Partnering with a Kratom Business
The most mainstream of all options is investing in an existing Kratom business looking for partners to expand. If you don’t have the time, resources, or experience to run a full-fledged company, then perhaps you can consider investing in the form of stocks for prosperous returns.
2- Setting up Your Brand
Alternatively, you can build your own company and let it outshine through the noise of the market to build a loyal customer base and earn revenue.
3- Buying Stocks
This is the easiest one. Buying Stocks of a publicly owned Kratom company. However, the option is limited due to just one or two companies listed with NASDAQ. Hopefully, things will change for the better as legal boundaries become more lenient and relaxed.
Many companies involved with the Mitragyna trade prefer to remain undercover. This essentially means that instead of selling their products directly to the public, they acquire a majority stake in another well-established Kratom brand with direct public reach. Doing so well maintains their privacy.
So far, the only company successful in getting listed on the Nasdaq is ATAI Life Sciences. While this biotechnology company doesn’t sell Speciosa directly to the public, it has acquired the lion’s share in Kures, a pharmaceutical research company that uses Kratom alkaloids to manufacture medications.
ATAI filed with the SEC (Securities Exchange Commission) and offered 16.42 million for public purchasing to raise over $200 million. The IPO (Initial Public Offering) went public on 18 June 2021, and the price of each share was worth $13 to $15 during the initial bid. It later opened at $21 on its debut on the exchange. And the future looks even more promising once the company gets FDA approval.
Setting A Kratom Business
Step 1: Check for Kratom’s Legality Status and all other related laws.
Step 2: Research well into the prevailing trends and the best supplier.
Step 2: Get Your Sources and Suppliers on Board
Step 3: Run a Marketing Campaign.
Hop Tip: Go for Digital Marketing, i.e., making a website, advertising it on social media platforms, building social proof, collecting reviews, etc.
Step 4: Forging strong customer-supplier relationships for long-term sustainability by providing value and promoting transparency.
Step 5: Having A Backup Plan in case of setbacks or legal issues.
Limitations Of Investing In the Kratom Industry
Just like any other industry, the Kratom one isn’t without challenges.
1- FDA Doesn’t Regulate Kratom
Despite being legal at the Federal Level, FDA has decided not to regulate its use.
2- Clouds Of Uncertainty
The DEA and FDA are trying their maximum to scrutinize or ban it- though they were pretty much unsuccessful, and the attempts went in vain.
3- Lack of Registered Kratom Stocks
One major hurdle is finding viable Kratom stocks. That’s precise because of the misconception that the Kratom company can’t go public owing to its listing as a Scheduled Substance in a few States. Kratom remains legal at the Federal Level, and so it can register its IPO with the SEC after getting approved.
4- Hurdles for Payment Processing
This is perhaps the greatest setback. The reluctance of financial institutions, including banks, to extend their services to the Kratom industry. This deprives the vendor of getting loans, credit card processing, payment processing, or other privileges. In 2017, out of the 11,000 operational banks in the country, only 300 were willing to extend their support to the industry.
There is no denying that Kratom lies in a gray area. But as one of the fastest expanding sectors of the economy, there exists an unparalleled growth opportunity in the industry.
Regardless of the timely drawbacks posed by legalities, Speciosa Products are accessible to all consumers. Hence, many individuals are looking forward to gaining a share or a piece of the projected growth. But it is important to weigh down the limitations with the benefits before you come up with any investment decision.
Rest assured, the above guide will give you enough motivation to jump into the Kratom investment pool before it becomes oversaturated. Plus, the failure of DEA to ban it hints that the coming decade will be a promising and prosperous one for Speciosa. Thus investing a few dollars in a burgeoning industry will guarantee to yield big profits down the lane.