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

FTC Scrutinizes Fifty Bar’s “Made in America” Claims as Vape Marketing Faces New Compliance Risk
FTC Scrutinizes Fifty Bar’s “Made in America” Claims as Vape Marketing Faces New Compliance Risk
The Federal Trade Commission sent a warning letter to Lucky Bar Holdings LLC over “Made in the USA” claims tied to Fifty Bar vape products, saying staff had reason to believe the products may be imported in whole or in significant part despite unqualified U.S.-origin marketing claims.
Jul.20
Special Report | Russian Vape Compromise Faces First Hurdles
Special Report | Russian Vape Compromise Faces First Hurdles
Russia’s regional vape-ban model is facing early legal and political tests, as Perm Krai moves ahead before federal legislation is fully adopted. The case highlights uncertainty over regional authority, concerns from business groups about market fragmentation, and the risk that pressure against regional bans could revive calls for a stricter nationwide prohibition.
Industry Insight
May.28
Reemtsma says German illegal e-cigarette seizures reached 70% of 2025 total, pouches 179%
Reemtsma says German illegal e-cigarette seizures reached 70% of 2025 total, pouches 179%
Reemtsma said its first-half 2026 black-market tracker for tobacco and nicotine products showed a continued rise in officially reported seizures in Germany, with illegal e-cigarette seizures reaching 70% of the full-year 2025 level and snus and nicotine pouch seizures reaching 179% of last year’s total.
Jul.08
Pennsylvania Updates ENDS Certification List as Chinese-Linked Manufacturers Enter State Review
Pennsylvania Updates ENDS Certification List as Chinese-Linked Manufacturers Enter State Review
Pennsylvania’s June 26 Pending ENDS Certifications list includes 23 manufacturers under review, including Shenzhen Smoore, Shenzhen IVPS, YME Technology and China-linked Boulder International. The list shows state-level vape regulation moving beyond retail brands toward manufacturer-based market access alongside FDA oversight.
Regulations
Jul.06 by 2Firsts Perspectives
Special Report|U.S.-Facing Retailer Lists RELX Creator Pro 15K: A Chinese Brand Signal Under FDA’s Lower-Priority Enforcement Window
Special Report|U.S.-Facing Retailer Lists RELX Creator Pro 15K: A Chinese Brand Signal Under FDA’s Lower-Priority Enforcement Window
Vapesourcing has listed RELX Creator Pro 15K as “Coming Soon” with U.S. warehouse shipping options; while the page does not show that RELX has entered the U.S. market through official channels or that the product has received FDA authorization, the listing suggests that Chinese brand-led ENDS products are becoming a new point of observation as the U.S. market reassesses regulatory risk following the FDA’s updated enforcement-priority policy.
Industry Insight
Jun.11
PMI Highlights 43 Million Smoke-Free Users at Stockholm Summit
PMI Highlights 43 Million Smoke-Free Users at Stockholm Summit
Philip Morris International says about 43 million adults worldwide now use its smoke-free products, with nearly 70% having stopped using cigarettes and smoke-free products accounting for about 43% of its net revenues.
Jun.18