The cannabis industry continues to evolve, and white-label manufacturing has become one of the fastest ways for retailers and entrepreneurs to enter the market. But within this space, there’s an important distinction: white-label CBD products versus white-label THC products. While both share similar private-label strategies, they differ significantly in product composition, regulations, and market opportunities.
White-Label CBD: Inputs, Formats, and Compliance
White-label CBD products are generally derived from hemp, making them legally distinct from marijuana. The main ingredients are CBD isolate, broad-spectrum distillates, and full-spectrum distillates. These feed into popular categories such as gummies, tinctures, topicals, capsules, and even pet treats.
Legally, hemp is defined as cannabis with no more than 0.3% delta-9 THC by dry weight, according to the 2018 Farm Bill. Any crop or extract testing above that threshold must be destroyed. This sets strict compliance boundaries for CBD white-label brands, even though the products can be sold more broadly across retail channels.
However, CBD labeling and marketing remain complex. The U.S. Food and Drug Administration has made it clear that CBD cannot currently be marketed as a dietary supplement or added to conventional foods. Until Congress develops a new regulatory pathway, white-label CBD brands must focus on compliant messaging, avoid medical claims, and maintain rigorous documentation for product safety.
Challenges in CBD White Labeling
One of the biggest hurdles in the CBD sector is inconsistent quality across the marketplace. Research has shown that many over-the-counter CBD products contain inaccurate labeling, with some having significantly more or less CBD than claimed. Others contain detectable THC, still within the hemp threshold, but potentially surprising for consumers expecting THC-free products.
For white-label businesses, this highlights the importance of partnering with reputable processors, insisting on third-party Certificates of Analysis (COAs), and ensuring cGMP standards in manufacturing. Clear, accurate labeling is crucial for earning consumer trust in an increasingly competitive CBD market.
White-Label THC: Inputs, Formats, and Regulations
White-label THC products operate in a far more regulated environment. These products rely on THC-rich distillates, live resin, rosin, or carefully blended cannabinoid formulations. Popular categories include gummies, chocolates, vapor cartridges, tinctures, and infused beverages.
Unlike CBD, THC white-label products must move exclusively through licensed dispensaries. Every product is tied to state-level track-and-trace systems like Metrc, requiring rigorous testing, potency disclosure, and standardized packaging. Retailers entering THC white labeling must align with state compliance frameworks and prepare for ongoing audits and reconciliations.
White-label THC has also expanded into ratio-based products, such as 1:1 CBD:THC gummies or formulations featuring minor cannabinoids like CBN or CBG. These blends are designed to appeal to consumer interests in wellness, sleep, and relaxation. While edibles and vape products dominate, cannabis beverages are also gaining ground, albeit from a smaller base.
Market Dynamics: Two Very Different Paths
CBD and THC white-label products serve distinct markets. CBD has the advantage of broad distribution, available online and in mainstream retail stores. However, U.S. CBD sales have plateaued in recent years as consumers shift toward lower-cost options and await clearer regulations. Gummies remain a bright spot for white-label brands, offering consistency and consumer familiarity.
By contrast, THC sales continue to grow as new adult-use markets open across the United States. Analysts project tens of billions in retail cannabis sales, driven by strong consumer demand, even amid price compression. For retailers and dispensaries, white-label THC provides an opportunity to control margins, strengthen brand presence, and tailor offerings to local consumer preferences.
Another wrinkle lies in hemp-derived THC products such as delta-8 or compliant delta-9 gummies. Some states allow these intoxicating hemp derivatives, while others have banned them. The legal environment remains unsettled, making it essential for white-label buyers to carefully monitor state-by-state regulations and federal updates.
What White-Label Buyers Should Know
For businesses exploring white-label opportunities:
- CBD white label offers scale and broad retail access but demands strict quality controls, accurate labeling, and cautious marketing.
- THC white label provides stronger in-dispensary pull, clearer regulatory frameworks, and higher consumer demand but requires licensing and compliance with track-and-trace systems.
- Hemp-derived THC products are a volatile but growing category, demanding extra diligence due to shifting legal interpretations.
Bottom Line
White-label CBD and THC products may share manufacturing models, but their pathways to market are dramatically different. CBD offers wider reach and accessibility, while THC delivers higher in-store demand under stricter regulation. For many retailers, a balanced approach—leveraging CBD for mainstream channels and THC for dispensary shelves—creates the best opportunity to capture both market segments.