The legal U.S. CBD market could surpass $24 billion in annual sales by 2025, according to a report from Brightfield Group, a research firm with expertise on the category, and private label suppliers are heavy into it, offering products for retailers to introduce as private brand items. Store Brands’ recent report showcased a few of these players.
However, among the potential, perhaps retailers are exercising some caution?
Surveying marketers at major consumer goods companies, a Trends study by sister publication Path to Purchase IQ found that CBD was named the “least valuable” topic of interest to their organizations in 2020 among 13 identified topics.
It’s a little striking to see a reaction like this when there’s been so much talk of CBD’s potential. Perhaps CPGs are not interested in CBD because private label is entering the market so strongly, or maybe there’s little interest because retailers are showing little interest?