The Challenges and Opportunities in the CBD Market

Market by 2FIRSTS.ai
Jan.11.2024
The Challenges and Opportunities in the CBD Market
US CBD market growth is hindered by federal illegality, financial regulations, and lack of FDA guidance, leading to delayed development.

According to CS News, with the passing of the 2018 US Agricultural Act and the legalization of recreational marijuana in half of the country, marketers once believed that marijuana and cannabidiol (CBD) products would become as commonplace in convenience stores as beer and tobacco. However, the lack of federal guidelines on CBD edibles, the federal illegality of marijuana, and unfavorable financial regulations have deterred major retailers and suppliers from entering these fields, leading to delays in the development of both industries.

 

According to a report by Brightfield Group titled "Struggling to Survive in the CBD Market in the United States," CBD sales have dropped from approximately $4.8 billion in 2021 to $4.2 billion today. Market researchers predict that by 2028, without regulation, CBD sales will only reach $5 billion; however, with regulation, sales could surpass $10 billion.

 

According to a report, cannabis market intelligence firm BDSA predicts that legal marijuana sales in the United States will increase from $29.6 billion in 2023 to $45 billion in 2027, accounting for 80% of global sales. Experts believe that if financial and other regulations are not as stringent, the growth could be even higher.

 

However, there are also some bright spots. While the biggest breakthroughs have been achieved by independent retailers, large convenience channel players like Jacksons Food Stores, Yesway, Sheetz Inc., and Alimentation Couche-Tard Inc./Circle K have either partnered with or successfully introduced CBD products, mostly sourced from small suppliers.

 

According to Alex Morrison, Business Analysis Manager at Cadent Advisory Group, "What you mainly see are independent chain convenience stores selling CBD products. It is definitely more challenging for nationwide mainstream chains. I believe they are concerned about brand awareness, consumer trust, and regulatory issues. The development of cannabis pharmacy partnerships in Canada is far behind that of the United States, and this is due to regulatory environment factors.

 

In terms of standardization, although only a few major retailers are involved, the CBD industry has developed more maturely in the convenience channel. Sheetz, located in Altoona, Pennsylvania, has been offering CBD products at select locations since 2019, including e-cigarette pens, tinctures, CBD pills/capsules, topicals, and edibles. In the same year, Yesway also introduced CBD-infused water and has steadily expanded its product line.

 

In March of this year, Yesway announced plans to partner with Las Vegas distributor GPO Plus Inc. and their Distro+ division to create an in-store CBD business called Feel Good Shop+. Feel Good Shop+ will offer beverages, snacks, and e-cigarette products for free sale.

 

In conclusion, Alan Adato acknowledges that CBD businesses could potentially thrive further if not restricted by the standards set by the US Food and Drug Administration (FDA) which hinder growth and consumer acceptance.

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

22nd Century Positions VLN® Cigarettes for Growth as FDA Considers 0.7 mg/g Nicotine Cap
22nd Century Positions VLN® Cigarettes for Growth as FDA Considers 0.7 mg/g Nicotine Cap
22nd Century Group (Nasdaq: XXII) reported early commercial momentum for its FDA-authorized VLN® very low nicotine cigarettes, distributing approximately 8,800 cartons across 1,700 new U.S. retail outlets in the fourth quarter of 2025, while forecasting expansion to more than 5,000 retail points in 2026.
Business
Feb.24
More Than 500 Stores in Russia’s Nizhny Novgorod Region Voluntarily Stop Selling Vapes
More Than 500 Stores in Russia’s Nizhny Novgorod Region Voluntarily Stop Selling Vapes
According to the Nizhny Novgorod regional government, 550 stores in the region have voluntarily removed vapes and e-liquids from their product assortments. Regional officials said a public offer encouraging businesses to self-restrict vape sales has been in place since September 2025, and that a large retail chain with more than 40 outlets in Nizhny Novgorod joined the initiative. The regional government also said a federal ban on vape sales is expected in the near future.
Apr.15 by 2FIRSTS.ai
JT Launches Limited-Edition Ploom AURA “Fuchsia Flare” in Advance Sales Starting March 10
JT Launches Limited-Edition Ploom AURA “Fuchsia Flare” in Advance Sales Starting March 10
Japan Tobacco Inc. (JT) began advance sales on March 10 for the fifth limited-edition color of its heated tobacco device “Ploom AURA,” named “Fuchsia Flare.” The product is available through the CLUB JT online shop and Ploom Shops nationwide at a price of JPY 2,980. From March 17, it will also be sold in limited quantities at convenience stores nationwide and selected tobacco retailers.
Mar.10 by 2FIRSTS.ai
Myanmar announces ban on e-cigarettes, covering imports/exports, sales, possession and use
Myanmar announces ban on e-cigarettes, covering imports/exports, sales, possession and use
Myanmar’s Ministry of Health said it has received cabinet authorization to enforce an e-cigarette ban under the Essential Supplies and Services Law, listing prohibited acts including the import, export, sale, possession, storage, carrying, distribution and use of vaping products.
Feb.26 by 2FIRSTS.ai
Spanish Congress Health Committee Approves Motion to Restrict Vape and Nicotine Pouch Sales to Authorized Channels
Spanish Congress Health Committee Approves Motion to Restrict Vape and Nicotine Pouch Sales to Authorized Channels
Spain’s Congress Health Committee has approved a non-binding motion calling for the sale of vapes, nicotine pouches, and related products to be limited to regulated authorized channels, excluding internet sales and non-specialized stores. The motion was introduced by the Socialist Parliamentary Group and approved after a negotiated text with the Popular Party.
Apr.15 by 2FIRSTS.ai
KT&G Moves Ahead With Oral Nicotine Product Development and Pilot Line Preparation
KT&G Moves Ahead With Oral Nicotine Product Development and Pilot Line Preparation
According to a Korean media report, KT&G is developing a smokeless nicotine product that delivers nicotine through oral absorption and is preparing a pilot production line for research and development.
Apr.08 by 2FIRSTS.ai