Legal cannabis dispensaries in states with adult-use or legal medical cannabis markets have been leading the way on sales of CBD products for years.
Legal dispensary sales of cannabis-derived CBD (those products with a higher concentration of THC than 0.3%) accounted for 65% of the $1.9 billion in total U.S. CBD sales in 2018, according to BDS Analytics, a market intelligence focused on the cannabis market. BDS Analytics forecasts sales of CBD in legal dispensaries will increase at a compound annual growth rate (CAGR) of 29% to reach $5.3 billion by 2024.
BDS Analytics’ consumer research highlights the importance of the broader category of ingestibles, which includes food, beverages and supplement product categories. But while the food industry awaits clarity from FDA over the legal status of certain hemp-based CBD products, legal cannabis dispensaries enjoy certain advantages, including well-established relationships with their client base.
Legal cannabis dispensaries comprised most of CBD sales in 2018, but that will change rapidly with sales through general retail channels overtaking sales in dispensaries by 2020. Still, mass merchants are not expected to wipe out specialty cannabis stores that cater to the cannabis enthusiast and those concerned with the interaction between THC, CBD and other cannabinoids—the “entourage effect.”
For the full article check out “Legal cannabis dispensaries lead way on CBD” in the Sourcing CBD digital magazine.
Christine Arrington is a principal advisor with BDS Analytics.