Chart: The days of CBD-only stores may be numbered

While hemp and marijuana may be close relatives, most hemp-derived CBD retailers don’t sell the products alongside medical cannabis. But as state laws around cannabidiol continue to change, stand-alone CBD stores may become a relic.

According to estimates from Hemp Industry Daily in the 2018 Hemp & CBD Industry FactbookCBD sales in the U.S. are expected to exceed $1 billion by 2020.

Today, only 3% of hemp and CBD retail respondents to a survey for the Factbook described their shops as medical or recreational marijuana stores.

But that may have to shift – at least for physical stores.

At least three states – Ohio, Michigan and California – have banned the sale of cannabinoids and products that include it outside medical marijuana dispensaries.

Texas state officials had announced a similar plan, but the proposal was put on hold, pending further review.

Enforcement of the provisions has been uneven but has impacted business plans for companies in the space.

While storefronts have become a target for state agencies, sellers of CBD products are seeing strong success online.

Among retailers focusing on hemp and CBD products, more than 60% sold their wares online only, not at a physical store.

The capital required to start an online hemp and CBD store is a fraction of the investment in a physical location, making the internet a natural home for many hemp growers and extractors looking for a place to sell directly to consumers.

13 comments on “Chart: The days of CBD-only stores may be numbered
  1. George C. on

    It would be very helpful if you would provide a list of companies (publicly traded and privately held) with stand-alone CBD retail store ownership — number of stores, locations, etc. Also, a similar list of companies that are or will be selling on the internet (direct and/or through established retailers such as Amazon) would help to round out the picture.

    Thank you for your excellent reporting.

    Reply
  2. Paula Damaso on

    I would also like the same information that George C is asking for ? Is it possible to receive this information ?

    Thank you
    Paula Damaso

    Reply
  3. JC Penny on

    Planning on getting into the business in OK. Question, how do you sell on line when there are laws on age, what state they are in [selling across state lines], medical card verification and probably many more issues I don’t know about?

    Reply
    • David Valdez on

      Hey there My name is David Valdez and I have been in the medical cannabis and Hemp space for over 10 years and have been able to help specific individuals like yourself in getting into the industry. I have helped many businesses get into many different avenues this industry has to go down. So depending on what you are exactly trying to do and what field your getting into will determine and answer all your questions. The MJ Biz Con is a perfect place to go and get a lot of information, in fact A REAL LOT of information for the exact field you are trying to get into.

      Reply
  4. Key on

    I think whole plant CBD is still legal to sell in California. I’m not sure about other states. But whole plan is the one that Sandra Gupta talked about on the CNN Special some time ago. The Entourage effect. But now they’re able to offer it without the high THC potency so therefore it’s legal to sell as CBD whole plant extract
    Who knows! Lol!

    Reply
  5. Marfynorth on

    In the coming months, medical marijuana market is likely to escalate many folds as some States are set to vote “Yes” on the opinion on legalization. The results of the mid-term poll may be far-reaching about the legalization of medical marijuana at the Federal Level. Fortunately, medical marijuana products including CBD tinctures & oils etc. are already emerging as a “hot selling” substitute for conventional medicines including opioids. This reason may also force the stand-alone CBD retailers to consider diversification of their product range. Several reputed online stores are already delivering a wide range of 100% Organic CBD Oil across the States.

    Reply
  6. WILLIAM NEVIUS on

    I would like your opinion on the future status of CBD stores only if the 2018 Farm bill is passed in its current form, which moves industrial hemp under the direction of the Department of Agriculture?

    Reply
  7. Josh on

    “While hemp and marijuana may be close relatives” is not true. Its a false distinction used by the hemp industry to provide a legal loophole to grow cannabis sativa. Marijuana is a perjorative word used by the government during the war on drugs. Lets drop it use. Its all cannabis. Hemp and cannabis are the same plant, cannabis sativa. What we have historically called hemp looks long and fibrous, while cannabis has much larger flowers. The 2014 Farm Bill signed by Obama codified the distinction by identifying hemp as anything with less than 0.3% THC. This was merely a convenient loophole to allow corporate farming of cannabis sativa and not be subject to the same laws that govern the same plant with higher THC levels. All those high CBD cannabis plants we grew along with our high THC cannabis that all looked the same have suddenly become different? Now the high CBD is -hemp- and the high THC is cannabis? Its great that folks think that CBD is THE holy grail of a cannabinoid when we only advertise 2 of the 150 cannabinoids, CBD and THC. Research shows its the entourage effect that is most important. Same reason making a pill from 1 cannabinoid isn’t ever going to approach the efficacy or medicinal value of a whole plant grown in the sun. To each their own. But educate yourself. I’m buying a whole plant tincture from a dispensary and you can by some european sourced CBD oil that you can find at the gas station. Unfortunate people don’t realize the distinction or smoke blowing taking place.

    Reply
  8. maria Hernandez on

    So the cbd is just from marijuana ? I put some oil on my hands and it smelled just like weed . If I wasn’t on methadone I would buy a gram and cheaply get rid of pain. Instead its 30 dollars for .15 of an ounce of hemp oil and cbd . Someone’s figured a way to make a fortune selling to people that would never touch marijuana .I hope to be one who won’t make a fortune but will be there to catch the trickle down dollars that fall. Great post Josh.

    Reply

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