Thanks to the passing of the Farm Bill in late 2018—containing a provision legalizing hemp, a species of non-psychoactive cannabis that CBD can be extracted from—hemp and CBD are on major retailers’ radar.
The CBD market is moving towards mainstream retailers and is projected to be over $20 billion in sales by 2024. Walgreens, Sprout, CVS, Ulta Beauty, GNC Holdings, Urban Outfitters are just a handful of retailers offering or looking to offer, CBD products to consumers.
Retailers jumping in
Several retailers for natural supplements are expected to have CBD on their shelves. Dillards Department Store, a chain with a total of approximately 292 stores in 29 states, is beginning to roll out several Hemp Depot while-labeled CBD products. Kroger announced in July another 1,000 locations in 22 states where their grocery stores will begin to carry CBD products.
In July, adding to the momentum, Toronto-headquartered Abacus Health Products announced new retail purchase orders from CVS for its line of CBDMEDIC pain relief and skincare products, sold to consumers via retail chains and the company’s e-commerce platform.
Also in July, Green Growth Brands announced a deal with American Eagle to begin selling its CBD-infused body-care products — including muscle balms and lotions — in nearly 500 of American Eagle’s stores and online, with sales expected to begin in October. This follows apparel retailer Abercrombie, which also plans to sell GGB’s products in more than 160 stores across the U.S.
Risks remain
The FDA is in the midst of creating guidelines for CBD manufacturers and will likely eliminate some manufacturers currently participating in the CBD boom and open the door to some large scale, mainstream manufacturers. The details of the FDA regulations will inform the specifics of how large the OTC piece of the CBD pie becomes.
“We’ve seen major chain retailers like CVS, Walgreens, and Whole Foods start to include CBD in their product mixes. The larger the entity, the more likely they are to stick with topical products until the FDA provides clarity,” said Kate Heckman from Stratos CBD.
When it comes to CBD oils, presently only 10% of demand is being filled by present growers. The industry has increased by 200% from 2017 to 2018, with about $618 million in sales last year with projected $22 billion by 2022.
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