The cannabis industry is offering new products, solutions and opportunities to consumers, retailers and even health professionals. So many different cannabinoids, including cannabidiol (CBD) and cannabichromene (CBC) provide many excellent health and wellness benefits for consumers.
Already some c-stores are offering a range of CBD products to customers. Two additional cannabinoids c-stores should pay attention to in 2023 are cannabigerol (CBG) and cannabinol (CBN).
CBG is mainly used for an energy boost, mood enhancement, focus and pain relief. It also helps fight inflammation, including in irritable bowel disease and glaucoma. CBG is a decarboxylated form of CBGA (cannabigerolic acid). This acidic form of CBG is called the mother of cannabis because CBD, CBC and tetrahydrocannabinol (THC) can be derived from it, depending on the enzymes involved in its metabolism.
CBN, on the other hand, is not as popular as CBG. CBN results from the degrading of THC. Cannabis that has aged has higher levels of CBN. Also, plants grown under the sun for extended periods of time contain CBN because the light helps degrade THC into CBN. CBN helps with relaxation, pain relief and can be used as a sleep aid.
“First and foremost, c-stores should know that both CBG and CBN are legal on a federal level provided the products containing CBG and CBN are derived from hemp,” said Leah Heise, constellation advisor for Kearney, a global strategy and management consulting firm. “Non-hemp CBG and CBN isolates can only be sold in a state’s legalized dispensary where allowed.”
CBG and CBN in C-Stores
Before c-store operators consider stocking CBG or CBN products in their stores, they must first ensure it’s legal in their state.
If c-stores are in the clear to market CBG and CBN, they can benefit tremendously from selling products with these cannabinoids.
In fact, Coresight Research conducted a survey in July 2022 to see where consumers were purchasing their cannabis products.
The majority of respondents are making these purchases in physical retail stores, with 56% saying they are buying from cannabis specialty stores and 43% from medical specialty stores, which were the top two responses.
Coresight sees physical retail stores as a significant opportunity for the market as they proved to be the preferred destination based on its survey.
“Based on our research, we believe that the convenience store is an excellent fit for the cannabis category due to its flexible hours of operation, multiple locations and variety of similar product assortment that consumers purchase already,” said Erin Schmidt, senior analyst at Coresight.
Seeing that most cannabis consumers buy other products at c-stores, retailers should consider stocking cannabinoid products like CBD, CBG and CBN.
“The cannabis space continues to create a growing opportunity for convenience stores and other over-the-counter retailers to capitalize on this rapidly expanding market,” said Heise. “As consumers become more knowledgeable about the products, their benefits and ways to consume it, the category will continue to grow.”
According to Kearney, the health and wellness industry, currently at $42 trillion, is growing daily, and c-stores are well-placed to participate in this growth. Wellness is an innovative sector, and consumers are seeking non-traditional products. The cannabis market makes up $9.3 billion of that amount and is forecasted to reach $23.6 billion by 2025. In 2021, the sales of products containing CBN totaled $65 million. Edibles containing CBN sold in California alone accounted for 11% of all edible sales, Heise noted.
Lastly, c-stores should keep in mind the different types of consumers these cannabinoids attract.
“Millennials are the largest market segment for all CBN- and CBG-related products, with more than 54% of millennials reporting that they have purchased and used CBG, CBN and CBD in the last year,” said Heise. “These consumers tend to be health-conscious and looking for alternatives to pharmaceuticals.”
As consumers continue to become more aware of different cannabinoids and their health benefits, the c-store industry can look forward to growing cannabinoid sales in the new year.
To maximize those sales, c-stores should continue educating consumers on the cannabinoid products available.
