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

Exclusive | TPE 2026 Cools as Caution Deepens in the U.S. Vape Market
Exclusive | TPE 2026 Cools as Caution Deepens in the U.S. Vape Market
The show had become an important check-in point for Chinese manufacturers and brand owners looking for signs of change in the U.S. market after months of softer demand. Instead, participants said the event highlighted a more restrained mood: traffic in the vape section was uneven, standout launches were limited, and conversations often failed to turn into orders.
Special Report
Apr.12
Australia Plans Tougher Penalties for Illicit Tobacco and Vape Crime
Australia Plans Tougher Penalties for Illicit Tobacco and Vape Crime
The Australian government is preparing a new crackdown on the illicit tobacco market, including stronger penalties, expanded police surveillance powers and tougher asset seizure measures.
Mar.19 by 2FIRSTS.ai
State Attorneys General Urge Visa, Mastercard and Others to Stop Processing Illicit E-Cigarette Transactions
State Attorneys General Urge Visa, Mastercard and Others to Stop Processing Illicit E-Cigarette Transactions
Fourteen U.S. state attorneys general sent a joint letter dated April 14, 2026 to Visa, Mastercard, American Express and Discover, asking them to immediately help stop the sale of illicit e-cigarette products by cutting off payment access.
Apr.17 by 2FIRSTS.ai
Thailand’s Bangkok Port Customs Reports E-Cigarette and Nitrous Oxide Seizure Worth More Than THB 27 Million
Thailand’s Bangkok Port Customs Reports E-Cigarette and Nitrous Oxide Seizure Worth More Than THB 27 Million
Bangkok Port Customs on April 28 announced the seizure of 52,000 complete e-cigarettes, 100 gallons of e-liquid and 126,226 canisters of nitrous oxide, with total economic damage exceeding THB 27 million, or about USD 831,178 based on an April 28 USD/THB rate of 32.484. The e-cigarette and e-liquid shipment was valued at THB 5.56 million, or about USD 171,161, while the nitrous oxide shipment was valued at THB 21.27 million, or about USD 654,784.
Apr.29 by 2FIRSTS.ai
FDA and IKE Tech Hold Formal Listening Session on Youth Access and Illicit ENDS Products
FDA and IKE Tech Hold Formal Listening Session on Youth Access and Illicit ENDS Products
U.S. Food and Drug Administration’s Center for Tobacco Products held a formal listening session with IKE Tech LLC to discuss youth prevention at the point of use for ENDS products, the circulation of illicit products in the supply chain, and the regulatory treatment of software in tobacco products.
Apr.10 by 2FIRSTS.ai
Product | 30ml E-Liquid, 40,000 Puffs, and Three Power Settings: OXBAR Launches New DTL Product ROVOTA
Product | 30ml E-Liquid, 40,000 Puffs, and Three Power Settings: OXBAR Launches New DTL Product ROVOTA
E-cigarette brand OXBAR has launched its new DTL e-cigarette, the OXBAR ROVOTA, on its official website. The product contains 30ml of e-liquid and is officially rated for up to approximately 40,000 puffs. It has a nicotine strength of 6mg and offers around 15 flavor options. The device is equipped with a 1400mAh battery, supports Type-C charging, features a 0.4Ω dual mesh coil, and supports three power settings of 20W, 30W, and 40W.
Mar.31 by 2FIRSTS.ai