The US cannabis industry has not developed as expected and regulation has prevented large-scale retailers from stepping in

Federal laws and regulations in the United States strictly affect the commercial growth of CBD and cannabis. CBD sales have shrunk under strict laws and regulations, and the cannabis industry is eager for change. Affected by regulation, the development prospects, and consumer acceptance of the CBD business of convenience stores have been affected.

 

With the passage of the 2018 U.S. Farm Bill and the legalization of recreational marijuana in half the country, marketers once thought marijuana and cannabidiol (CBD) would be as common in convenience stores as beer and cigarettes, news reported. However, the lack of federal guidelines on CBD foods, the federal illegality of cannabis, and unfavorable financial regulations have made large retailers and suppliers reluctant to enter these areas, so the development of these two areas has been delayed.

 

According to a report by BrightfieldGroup, CBD sales have fallen from about $4.8 billion in 2021 to $4.2 billion today. Market researchers predict that by 2028, without regulation, CBD sales will be just $5 billion; With regulation, sales could top $10 billion.

 

Marijuana market intelligence firm BDSA expects U.S. legal marijuana sales to increase from $29.6 billion to $45 billion by 2027, accounting for 80 percent of global sales. Experts note that growth could have been higher if financial and other regulations had been less stringent.

 

However, there are some bright spots. Although the biggest breakthroughs have been made by individual retailers, just as JacksonsFoodStores, Yesway, SheetzInc.Couche, and Alimentation-TardInc./CircleK are big convenience channel players who have partnered with cannabis suppliers/or successfully introduced CBD products. Most of these products come from small suppliers.

 

Alex Morrison, head of business analysis at Cadent Consultants Group, said: “What you see is mainly CBD goods being sold in separate convenience stores. For mainstream chains in China, this is difficult. I think they’re worried about brand awareness, consumer trust, and regulation. Because of the regulatory environment, strategic partnerships for cannabis dispensaries are much less developed in Canada than in the United States.”

 

In the case of the need for standards, although only a few large retailers are involved, the CBD business has developed more mature in convenient channels. Since 2019, Sheetz, based in Altoona, Pennsylvania, has offered CBD products in some locations, including e-cigarette pens, tinctures, CBD pellets/capsules, pockets, and food. That same year, Yesway also launched a product line containing CBD water and has steadily expanded its product line.

 

In March, Yesway announced plans with Las Vegas-based distributor GPOPlusInc. The Distro division reached an agreement to create a type of in-store CBD business called FeelGoodShop. The FeelGoodShop e-cigarette brand offers drinks, snacks, and free sales.

 

Ultimately, Aaron Adato says, without the U.S. Food and Drug Administration (FDA), the CBD business might have stronger standards to hinder growth and consumer acceptance.