Ask Our Experts: Battling for Position in the CBD Market Space
Q: How do you expect large-scale national retailers to impact the CBD market?
By William Sumner, Hemp Content Manager, New Frontier Data
A: Apart from regional chains like Southeastern Grocers or Vitamin Shoppe, most national retailers are sitting on the sidelines as the U.S. CBD market expands. Consumers and CBD brands alike are anxiously anticipating the moment when retailing giants like Walmart decide to enter the market, with most curious about how that will affect the market. According to Benjamin Witte, founder and CEO of Recess CBD sparkling beverages, whenever national retailers enter the CBD space is when “the game really begins.”
During the second episode of New Frontier Data’s free cannabinoid webinar series, “Trends and Innovation in Infused-CBD Food and Beverages”, Witte explained that the only thing holding companies back from entering the market immediately is the regulatory uncertainty surrounding CBD. Whenever the FDA provides more definitive clarity about CBD’s status, according to Witte, rush will be on for retailers.
“Upon regulatory clarity, that’s going to create an inflection point in the industry where all of a sudden the national retailers are going to carry these products,” he said. “What’s going to happen is that it’s going to filter out some of those brands. Retailers are only going to carry so many brands… there’s just not enough shelf space.”
Witte went on to say that winnowing out various CBD brands will lead to other market innovations as companies compete to explore and establish new CBD applications in attempts to distinguish themselves amid the competition.
The next installment of New Frontier Data’s free webinar series is slated for July 22 at 3 p.m. Eastern; please register here to join the conversation.