CBD is about as hot as any category in mass re- tail. Why can’t it also be hot in private label? The answer, of course, is that it can and retailers and suppliers are quickly looking to private label suppliers to gain a greater edge in this still quite mysterious category, which offers the promise of robust sales growth and strong profits.
The bottom line is that CBD products continue to gain popularity among consumers, with the legal U.S. CBD market expected to surpass $24 billion in annual sales by 2025, according to market research firm Brightfield Group’s recent “From Farm to Aisle: US
CBD Market” report.
Consumer response, say many industry followers, has been very positive, particularly in categories like topical personal care. According to BDS Analytics, retail chains are looking to make stronger commitments to the category and are showing strong interest in private label CBD offerings. Sans Food and Drug Administration approval and legality of CBD merchandise at the federal level, this would allow retailers to set standards of their own, giving them tight control over products’ ingredients, claims and traceability while also alleviating consumers’ safety and liability concerns.
BDS Analytics noted that a product’s success will largely be determined by the quality of consumer education programs and consistent labeling — elements retailers with proprietary product programs are well-equipped to do.
These chains also can capitalize on a unique advantage that the CBD category presents: it is demographically agnostic. Unlike most new trends, CBD products appeal to people of multiple ethnicities, age groups and income levels. According to BDS, 40 is the average age of CBD consumers. But they skew far older, with AARP Magazine recently devoting several articles to the popularity of CBD among seniors for wellness and recreational use.
To help retailers gain a better understanding of the players in the private label CBD market, Store Brands is taking a look at some of the products and ingredients now available to retailers looking to pursue the lucrative opportunities inherent to private label CBD programs that can address a range of consumer needs.