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A lack of federal mandates and myriad state regulations stymie retailers and suppliers.
NATIONAL REPORT — With Passage of the 2018 Farm Bill and legalization of recreational marijuana across half the country, marketers thought cannabis and cannabidiol (CBD) products would become as commonplace in convenience stores as beer and tobacco. But a lack of federal guidelines for CBD consumables, cannabis’ illegality at the federal level and unfavorable financial laws have made major retailers and suppliers reluctant to enter these segments and this has slowed growth of both areas.
CBD sales declined from a high of about $4.8 billion in 2021 to $4.2 billion today, according to Brightfield Group’s report, “Striving to Thrive in U.S. CBD.” By 2028, the market researcher predicts that CBD sales will only reach $5 billion sans regulation; with regulation, sales could exceed $10 billion.
Cannabis market intelligence firm BDSA predicts U.S. legal cannabis sales will grow from $29.6 billion in 2023 to $45 billion by 2027, representing 80 percent of global sales. Experts believe growth could be higher if financial and other regulations were less stringent.
But there are bright spots. While the most inroads are being made through independent retailers, larger convenience channel players such as Jacksons Food Stores, Yesway, Sheetz Inc. and Alimentation Couche-Tard Inc./Circle K have partnered with cannabis suppliers and/or successfully introduced CBD products, many from smaller vendors.
“You’re seeing mainly independent c-stores marketing CBD products,” said Alex Morrison, manager of business analytics at Cadent Consulting Group, based in Wilton, Conn. [Read More @ Convenience Store News]
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