Almost immediately after the 2018 Farm Bill was enacted, legalizing retail sales of cannabis-derived products, there was a deluge of cannabidiol (CBD) products. Today, CBD-curious consumers have plenty of options, as do c-stores looking to add the category.
In fact, IBIS World stated CBD manufacturing in the U.S. grew an annual average of more than 27% for each of the past five years. That said, CBD production remains unregulated.
“Retailers face an ambiguous legal landscape where they are left to decipher product quality and safety without clear federal guidelines in place,” said Jonathan Miller, general counsel for U.S. Hemp Roundtable, a coalition of companies and organizations representing the hemp industry.
That uncertainty could be one reason for mixed results in the c-store channel last year. The biggest winner, per Circana, was CBD canned juices with a gain of more than 250% in dollar sales and more than 323% in units for the 52 weeks ending Dec. 31, 2023. Pet medicines and electronic smoking devices shined as well.
Awaiting A Regulatory Framework
However, proposed federal legislation could help define the category. The Hemp and Hemp-Derived CBD Consumer Protection and Market Stabilization Act of 2023 (HR 1629) includes language that would grant the Food and Drug Administration (FDA) oversight.
“The FDA has dragged its feet in properly regulating CBD and hemp-derived products on the market, creating confusion about its legal uses. Americans need better guidance. I introduced this bill to provide certainty for hemp farmers so that their crop may find legal uses, specifically in dietary supplements,” said U.S. Representative Morgan Griffith, the bill’s sponsor.
“The National Cannabis Industry Association (NCIA) supports HR 1629 and feels it’s a critical bill that would empower the FDA to regulate hemp-derived CBD as a dietary supplement. CBD products have become increasingly popular in recent years, offering a range of potential health benefits and therapeutic uses. However, the lack of clear regulation has created confusion and uncertainty in the market, leaving consumers vulnerable to unsafe products and hindering the growth of the industry,” said Michelle Rutter Friberg, director of government relations for NCIA.
“With a regulatory framework in place from the FDA, we expect consumer confidence to increase,” added Miller.