With CBD legalized at the federal level and gaining popularity nationwide, more chain stores are beginning to stock hemp-based products. While the trend has yet to take off in many areas, the recent passing of legislation to legalize industrial hemp has companies jumping at the potential opportunities CBD provides.
CBD Vs. THC: Is It Medical Marijuana?
While industrial hemp has now been officially legalized on the federal level, that doesn’t mean medical or recreational marijuana is guaranteed to follow any time soon. All industrial hemp is required to have under 0.3% THC content, meaning current hemp produced for its CBD and other uses does not contain the more well-known psychoactive compound. Instead, industrial hemp is produced for CBD, which can be used to help treat a variety of conditions from anxiety to chronic pain.
Industry Giants Onboard
With industrial hemp now legal and growing in popularity, many major stores are planning on stocking CBD and hemp-based products. This includes pharmacy giants like Walgreens and CVS, who are planning to introduce CBD products in thousands of stores across the country. In 2016, U.S. the retail medical market size was valued at $1.4 billion with a compound annual growth rate of 20% through year 2025. A large part of that growth can be attributed to the ongoing acceptance of CBD. And while they won’t be available in every state yet, it’s likely more major stores will follow this trend fairly soon.
While this might seem like a win for CBD-users everywhere, it could actually hurt many smaller shops that specialize in hemp-products. The competition from larger chains could drive small shops out of business without appropriate advertising. On average, consumers see a business sign roughly 50 to 60 times per month if they live within a five-mile radius of its location, but that might not be enough to draw people into smaller hemp shops if larger pharmacies start providing CBD products as well.
CBD Acceptance Growing
Larger companies starting to stock CBD products does have the potential to help other types of business nationwide, particularly growers. The vast majority of growers, 84% of survey respondents, are planning to expand their growing facilities in the next five years. This is largely due to the growing acceptance of CBD and hemp, as well as major pharmacies now stocking products made with industrial hemp.
Hemp and CBD seem to be continuing to grow in popularity, and the recent legalization of industrial hemp has greatly simplified the creation and access of CBD products. If current patterns continue, CVS and Walgreens won’t be the only major companies selling CBD products in the near future. While marijuana legalization may still be far off, hemp has already been legalized, and it’s already changing the way businesses operate.