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

French Vape Distributor Kumulus Vape Yields About 3% as Earnings Growth Stalls
French Vape Distributor Kumulus Vape Yields About 3% as Earnings Growth Stalls
Listed French vape distributor Kumulus Vape will trade ex-dividend on June 26, 2026, and pay an annual dividend of €0.10 per share on June 30, with Simply Wall St saying the payout is covered by profit and free cash flow, while weak earnings growth remains a concern.
Industry InsightMarketNews
Jun.24
Philippine Customs Seizes $2.22 Million in Misdeclared Vape Products From China
Philippine Customs Seizes $2.22 Million in Misdeclared Vape Products From China
The Philippine Bureau of Customs said it intercepted nine containers of misdeclared vape and vape-related products from China at the Manila International Container Port, with an estimated value of about ₱137 millionor, about $2.22 million.
Jul.10
UK Vape Brands Face White-Packaging and Flavour-Name Curbs in Youth-Appeal Crackdown
UK Vape Brands Face White-Packaging and Flavour-Name Curbs in Youth-Appeal Crackdown
The UK government and devolved administrations have launched a 12-week consultation on proposals to make vapes less appealing to children, including plain white packaging, limits on device colours, restrictions on flavour names and changes to how products are displayed in shops.
Jul.10
AP Questions FDA Rationale as Glas Fruit-Flavored Vapes Won Authorization Without Added Cessation Benefit
AP Questions FDA Rationale as Glas Fruit-Flavored Vapes Won Authorization Without Added Cessation Benefit
The U.S. Food and Drug Administration (FDA) recently authorized two fruit-flavored vaping products from Glas, but a newly released agency memo shows the products did not demonstrate greater smoking-cessation benefits than tobacco-flavored e-cigarettes. The Associated Press said the findings are likely to raise further questions about the FDA’s regulatory rationale and standards for flavored vaping products.
Jun.12
UK Vaping Products Duty to Raise £565 Million by 2030/31
UK Vaping Products Duty to Raise £565 Million by 2030/31
The UK will introduce Vaping Products Duty on all vaping liquids from October 1, 2026, with government revenue forecast to rise from £135 million in 2026/27 to £565 million by 2030/31.
Jun.18
Charlie’s Plans Q3 2026 Pilot of America’s First Age-Gated Flavored Disposable Vape
Charlie’s Plans Q3 2026 Pilot of America’s First Age-Gated Flavored Disposable Vape
U.S. vape company Charlie’s Holdings announced plans to pilot its age-gated flavored disposable vape products in hundreds of retail stores during the third quarter of 2026. The company said the products will utilize AI- and blockchain-powered age-verification technology designed to address FDA concerns over youth access and potentially create a new compliance pathway for flavored vape products.
Jun.15