Mainstream retail's move into CBD could create $24 billion industry
Thanks to passage of the most recent U.S. farm bill legalizing hemp, cannabidiol — or CBD — is being sold widely throughout the country.
Why it matters: Mainstream acceptance is expected to bring explosive growth, with analysts from Brightfield Group estimating the U.S. CBD market will grow 706% from its 2018 levels by the end of the year, and reach nearly $24 billion by 2023.
- Initially, sales of CBD products were generally limited to cannabis-specific companies, including vaping and hemp shops, but in Q2 retailers like CVS and Walgreens moved into the space.
- Large pharmacy, retail and grocery chains are expected to take 57% of CBD retail market revenue by year-end.
Why you'll hear about this again: "Over the short-to medium-term, we expect expansion across both pharma and grocery as well as the emergence of supercenters, gyms, pet stores, natural food chains, and other big box retailers," Brightfield said in a recent publication.