Are Retail CBD Sales Right For You? Learn More about this Emerging Business Trend
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Since the growth and sale of hemp was made legal in 2018 with the Hemp Farming Act, CBD and other hemp cannabinoid products have been everywhere. In case you haven’t heard of CBD, it stands for cannabidiol, and is a non-psychoactive compound that comes from the hemp plant. People from all over the world are starting to take hemp cannabinoid products as part of their daily routine.
The first FDA approved CBD pharmaceutical drug, Epidiolex, was released in 2018, a move that has only strengthened the interest in cannabidiol. As this compound continues to be studied, the demand for it continues to rise, which is the driving force behind this rapid growth.
CBD’s popularity has also spread worldwide, which has been significantly influenced by its ever growing popularity in the U.S. Now, there are around 47 countries across the globe that have made hemp farming legal, and experts predict that this will only continue to expand.
According to a 2019 report by Global Market Insights, the global CBD market is expected to reach a value of $89 billion by 2026; that’s a 52.7 percent growth rate! The same report shows that the cannabidiol industry is set to hit $54 billion by 2026 in North America alone.
The growing acceptance and understanding of cannabidiol has increased the public’s awareness of CBD, especially here in the U.S. According to a recent Single Care survey, 33 percent of Americans use CBD regularly, and there are even more people familiar with it. The same poll showed that 64 percent of Americans are at least aware of CBD products.
Brick and Mortar Retail CBD Sales
As CBD has become an accepted form of healthy living in the US and beyond, the hemp CBD category is a great fit for retailers in multiple niches to offer their customers. Point of Sales displays have proven to help sell the products in a retail environment as a convenient way for consumers to purchase CBD products. Infusionz offers multiple CBD products that can be proudly displayed at checkout and will undoubtedly sell through quickly.
Being able to sell hemp-derived products in the U.S. has opened the doors for CBD to be sold nearly anywhere, including the internet. So it’s no surprise that cannabidiol has begun to take over the e-commerce space. Online sales are the largest area of growth for the industry because of the accessibility, prices, and choices. This presents a unique opportunity to create new revenue streams and grow your consumer base through two booming industries: CBD and e-commerce.
Is it right for your business?
All these stats and projections look great, but what if CBD doesn’t seem to fit your business? Fortunately, this industry is far from isolated. It has spread to countless other industries like beauty and pet care.
Keep reading to see what types of products you could offer!
The name says it all. These products are cannabidiol in its most concentrated and range from wax, oil tinctures, and powdery isolates. Concentrates are popular amongst individuals who require high doses of CBD, and they’re becoming more popular. Tinctures alone increased in value from $39 million in 2015 to $385 million in 2019. You can also sell the accessories used for concentrates in conjunction with the CBD extracts (pipes, bongs, rigs etc). The margins on these CBD accessories are traditionally very high.
CBD edibles are one of the most popular ways people use CBD. So it’s not surprising this segment of the market has a projected CAGR of 24.30% between 2020 and 2027, according to a report by Data Bridge Market Research.
Health and wellness are two of the driving factors behind the success of cannabidiol. In 2019, joint pain and inflammation made up about 10 percent of the market share, and research is pointing to similar trends for the current market forecast.
Who would have thought that CBD and the beauty industry would go hand in hand? Cannabidiol’s high fatty acid content has made it a prime ingredient for body lotion, serums, face masks, and more. This growing demand for CBD centric beauty products has created a projected CAGR of 33.7 % by 2027.
Perhaps the most exciting prospect of the CBD industry is the number of new opportunities it presents. Since the industry is so new, there is a lot of room for unique partnerships and marketing techniques.