cbd in retail

Cbd in retail

Currently, 65% of CBD sales are in supplement oils —which is also the subcategory seeing the largest declines . In recent months, t herapeutic topicals and topical analgesics (painkillers) have seen sales declines as well. However , as innovative products (such as waters and body care items like lip balms, deodorants, facial masks , and lotions ) bring CBD into new a reas , they also bring opportunity to draw in more shoppers.

Ove r the last year , and especially during the COVID lockdown, CBD growth in natural and mainstream multioutlet stores has slowed down to under 1%. Yet, even with that slowed growth rate , these stores have accrued $153 million in sales from CBD products , according to SPINS’ Natural Enhanced and MultiOutlet channels (powered by IRI) . That’s still a sizeable piece of the retail market for a trend that’s still finding its footing in a complicated environment.

C ognitive health (the ability to clearly think, learn, and remember) is also proving to be a bright spot for CBD sales. According to data from SPINS’ Natural Enhanced and MultiOutlet channels (powered by IRI) , we see that CBD products associated with cognitive health are showing impressive 80% growth year over year compared to less aggressive but still strong performance of products associated with sleep (nearly 30%) and mood control (nearly 10%). Although the pandemic has complicated the market, it has likely contributed to that strong growth in sleep -related products as shoppers put an emphasis on getting adequate rest during stressful times.

With CBD growth slowing overall but showing several bright spots, you might be wondering how to navigate this market. Right now , there is no blueprint because CBD is still in uncharted territory—and your smartest decision is to look at the data to find your next move.

Shoppers Care About CBD’s Many Health Benefits

Although you might not be familiar with its name, the endocannabinoid system (ECS) has become an area of focus for consumers looking to maintain overall health and wellness. According to the National Institutes of Health , t he ECS involved in a multitude of processes within our body, including regulating our metabolism, appetite and digestion, mood, sleep, cardiovascular system function, stress levels, and more . Experts believe the ECS is responsible for homeostasis, or the overall equilibrium of these many systems in our body.

Right now, the uneven sales story could be the result of a couple of reasons. First, we might be witnessing consumers finding and sticking with specific products. Commonly, after a trend begins to level off and shoppers have tested the variety of options on the market, they return to the brands or products that they have come to trust . This is especially true in mature markets. Also, the disparate state laws regulating CBD and THC-based products prevent a uniform marketplace from happening across the country. It’s possible that, buyer confusion aside, the newer CBD markets are still in the discovery stage. The CBD story is still being written and it varies from state to state.

As the name suggests, CBD is closely linked to the ECS. With a reputation for easing stress, managing anxiety, coping with chronic pain, and more, CBD has become a go-to for shoppers looking to improve their overall health and wellbeing . Many s hoppers are also gravitating to CBD products that leverage what is known as the entourage effect , when the combination of multiple (non-THC) cannabinoid compound s produces different results than simply having CBD on its own. For example, taking CBD with whole hemp extracts or supplements like clove, black pepper, could boost its anti-inflammatory effects.

CBD Is Still in the Wild, Wild West

Although CBD has become a commonplace ingredient and standalone supplement in the past few years, it has faced some unusual obstacles . Restrictions on CBD are less stringent than they used to be, especially as states have begun to ease cannabis laws, but they still vary depending on where you live. Not to mention the consumers wonder ing if CBD products are the same as marijuana , if its legal where they live , and what its benefits are. Education for consumers, retailers, and brands is going to be a big component of CBD’s success.

With CBD available as a standalone supplement , a functional ingredient in various products, and a new item in younger markets, the CBD landscape is going to keep growing—and it will get more complex. Do you have a partner to help you navigate the market and stay ahead of trends? Let SPINS be that data partner for you. You won’t find this CBD data elsewhere, and our experts can provide you with exclusive insights you’ll want to stay competitive in this emerging market.

Cbd in retail

One of the biggest trends in self-care, health, and beauty today is the rise of cannabidiol products, popularly known as CBD. Found in the cannabis or marijuana plant, CBD is a naturally-occurring compound that’s gained momentum for the host of alternative-care therapeutic properties it offers. CBD does not produce any psychotropic or intoxicating effects – that is, CBD users do not experience the high that is associated with marijuana. CBD in retail is becoming more prevalent and many companies are struggling with the regulatory implications.

What level of oversight currently exists for CBD products?

Traditional health product retailers such as CVS have announced the debut of CBD wellness products at more than 1,500 of their stores. The more interesting news is that non-health retailers are getting into the space as well – brands such as DSW and Nieman Marcus have announced that they will be including CBD in retail products this year. Most recently, Dollar General has announced it will include CBD products in more than 1,100 stores, crediting customer demand for adding it to their product mix. With Brightfield Group predicting that CBD will become a $22 billion industry, more retailers are sure to be joining the party.

What is the FDA currently doing in relation to CBD in retail?

However, CBD is in an interesting place right now as it’s not currently FDA-regulated. This means there is the potential for an influx of regulation in the area in the coming years. As retailers evaluate whether to invest in adding CBD products to their assortments, it’s important they understand the current state of oversight, as well as what’s on the horizon. To better understand this, I spoke with David Patterson, Consumer Products Quality & Regulatory Lead at Clarkston Consulting and asked some key questions retailers should have about the growth of CBD and how it impacts them.