The increasing excitement about CBD is making it a seemingly profitable industry. CBD sales are expected to surge over 700% in the U.S. this year, with revenue hitting $23.7 billion by 2023. 1
Last month, Outform attended the USA CBD Expo at the Miami Beach Convention Center. The event featured a multitude of brands eager to show their products specifically focused around CBD, including PhenoPen, Ignite, Koi CBD, Pachamama, Urth, Envy CBD, and Heavenly Candy and many more.
A hot topic in the past year, CBD (or Cannabidiol) is a component of marijuana that is non-psychoactive, which means that it does not cause a “high” (unlike THC, which causes users to feel an altered state of mind). CBD is known more for its perceived medical benefits and is said to treat a variety of health issues, including acne, anxiety, chronic pain, depression, epilepsy, and insomnia.
While marijuana is legal in the U.S. in only 22 states for medical use and in only 11 states for recreational use, CBD is much more accepted nation-wide (CBD is federally legal, but many states and cities have their own laws concerning its regulations). 2
The expo showed just how varied CBD can be in its application. Products included CBD-infused vape oils, oil drops, gummies, coffee, creams, facemasks, and even pet care products. With the flexibility of CBD’s use, brands are seeing potential and interest is quickly expanding.
Barney’s has opened a “cannabis lifestyle shop” in its Beverly Hills location called “The High End”. The space is described by Barney’s as a luxury head shop offering luxury rolling papers, custom blown glass pieces, vintage ashtrays, and a robust offering of CBD-infused beauty. 3 Last year, Sephora started selling Lord Jones’ CBD formula body lotion, the first-ever CBD brand available in its stores across the U.S., which is now available in 170 Sephora stores. 4 Even grocery stores are starting to include CBD products in their assortment. CBD vendors Charlotte’s Web and Veritas Farms are planning to distribute their products to 1,350 Kroger Co. supermarket locations across 22 states. 5 Other retailers which are looking to get in on the action include or are already offering CBD products include Walgreens, Sprout, CVS, Ulta Beauty, GNC Holdings, and Urban Outfitters.
Although interest is growing in CBD, consumers are still new to understanding what CBD is and how it can help them. While this is a great opportunity for brands to put a new twist on their products to capture interest, there is also a need to educate consumers on this trend. Once CBD products begin to be more streamline within stores, there will be a need to create in-store education so that once consumers take notice, they can also have an opportunity to make a well-informed purchase decision. If taking a page from the latest trend in marijuana dispensaries, store employees should be trained to help answer any questions customers may have about CBD, such as explaining how it differs from THC, its benefits, and helping them decide which products suit them best. There is also an opportunity to include self-education tools, such as interactive tablets or lift-and-learn RFID displays so that customers can explore products and information at their own pace.
Helping customers better understand CBD and creating the opportunity to do so in an easy way in-store will be an important aspect of contributing to the sales of CBD products.
Cannabis is becoming a wellness-forward lifestyle through beautifully designed and welcoming dispensaries.
Outform’s RFID Experience for cannabis products that encourages interaction and product education.