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

Product | BAT Japan Launches virto Bright Peach Click in Japan, Expanding glo Hilo’s Capsule-Based Flavor Portfolio
Product | BAT Japan Launches virto Bright Peach Click in Japan, Expanding glo Hilo’s Capsule-Based Flavor Portfolio
British American Tobacco Japan (BAT Japan) has introduced virto Bright Peach Click, a new heated tobacco stick designed for the glo Hilo system. The product expands the existing virto consumable lineup with a combination of tobacco, menthol and ripe peach flavors, featuring a capsule mechanism that releases additional fruit flavor when activated. The product launched in Japan on July 27, 2026, through glo official online channels, convenience stores and tobacco retailers.
Aug.03
From a 2017 Launch to 48% of South Korea’s Heated Tobacco Market, KT&G Looks Back on a Decade of lil
From a 2017 Launch to 48% of South Korea’s Heated Tobacco Market, KT&G Looks Back on a Decade of lil
KT&G announced on Aug. 13, 2026, that it has opened “lil Archive,” a brand exhibition space in Seoul showcasing the evolution, technology platforms and future direction of its heated tobacco brand lil since its launch in 2017. KT&G said lil now spans three major platforms — lil SOLID, lil HYBRID and lil AIBLE — with more than 30 dedicated consumables, and held a 48% share of South Korea's heated tobacco market in the second quarter of 2026. The opening comes as lil enters its 10th year, with KT&G continuing to position the brand for expansion beyond its domestic market.
Aug.14
Product | ZAR Launches Coffee AirPouch, Expanding Pouch Format Into Caffeine Products
Product | ZAR Launches Coffee AirPouch, Expanding Pouch Format Into Caffeine Products
ZAR has introduced Coffee AirPouch, a nicotine-free caffeine pouch product that extends the brand’s AirPouch format into the functional consumer category. Each pouch contains 50mg of natural caffeine and features a coffee flavor, highlighting how pouch-based products are expanding beyond traditional nicotine applications into broader lifestyle and energy-use scenarios.
Market
Jul.13 by 2Firsts Perspectives
UK Sets Oct. 29 Start for New Vape Retail Rules Covering Age Checks, Giveaways and Discounts
UK Sets Oct. 29 Start for New Vape Retail Rules Covering Age Checks, Giveaways and Discounts
The UK Department of Health and Social Care published new guidance on Aug. 11 outlining the next phase of retail rules under the Tobacco and Vapes Act 2026, which will take effect on Oct. 29, 2026. The measures extend the minimum age of sale of 18 to all vaping and consumer nicotine products and restrict proxy purchasing, promotional giveaways and substantial discounts. Relevant offences in England, Wales and Scotland may carry a £200 fixed penalty notice, while persistent offenders can face temporary sales bans.
Aug.12
North Carolina Adds $1,000 Vape Shop Tax and 21+ Age Verification Requirement
North Carolina Adds $1,000 Vape Shop Tax and 21+ Age Verification Requirement
North Carolina’s new state budget introduces additional vape retail regulations, including a $1,000 tax on vape shops and mandatory age verification requiring customers to be at least 21.
Jul.08
Spain Plans to Extend Smoking Ban to Terraces and Beaches, Bringing Vapes Under New Restrictions
Spain Plans to Extend Smoking Ban to Terraces and Beaches, Bringing Vapes Under New Restrictions
Spain is advancing a new tobacco-control reform that would expand smoking restrictions to additional public spaces, including restaurant terraces and beaches, while bringing vaping and other nicotine products into the same regulatory framework. The proposed measures aim to reduce secondhand smoke exposure, protect young people and expand smoke-free environments. The proposal remains under legislative development, and final implementation details have not yet been confirmed.
Jul.23