The world of CBD in the post-Farm Bill era is moving away from small-scale producers and local, independent retailers. As the U.S. CBD industry continues to move toward the mainstream – both in terms of target consumers, production and retail channels – producers who have positioned themselves to reap the benefits of economies of scale and leverage the capacities offered by massive retail chains will quickly out-run less-prepared competitors. This is because we expect greater than 60% of CBD sales – more than $13 billion in revenues – will be channeled through chained retailers in 2022.
The Farm Bill’s legalization of CBD has created a huge demand from both traditional hemp CBD consumers and more mainstream consumers, some of whom will be exposed to CBD products for the first time over the short-to-medium-term at familiar chain retail stores. Once trusted retail giants like Walmart, Rite Aid, Target, etc. lend the full weight of their names and reputations to the CBD industry, Brightfield Group projects demand and sales to skyrocket. Companies like CBDfx are expected to successfully leverage their experience operating with smaller chains to effectively tap into this market potential and scale very quickly as a result.