The CBD Market is Booming. Here’s How To Get On Board.
While Cannabidiol (CBD) is known to put you to sleep, the latest statistics on this booming market will open your eyes.
Today marks National CBD Day, a time to recognize a relatively new product line-up that’s set to experience unparalleled growth in the (very) near future. Cannabidiol, or CBD, is a chemical found naturally in the cannabis plant. CBD does not contain tetrahydrocannabinol (THC), the psychoactive component of cannabis that produces a high. CBD is non-psychoactive and is widely used to alleviate stress and help with sleep.
Beyond the health benefits, the CBD market displays a strong promise of growth – which means that the opportunity for small businesses to take advantage of this boon is now. However, due to evolving regulations, it’s crucial to ensure small businesses selling CBD products are equipped with the right technology partners to help them succeed.
Below are some exciting new data points via Statista about this industry, and information on how small business retailers can leverage the latest technology to operate cost-effectively, and grow their bottom line.
1. This market is projected to grow over 3x by 2026.
Just two years after selling hemp derived products became legal in the U.S., sales of CBD products were estimated at US$4.6 billion in 2020. By 2026, this market is expected to grow to US$16 billion in value.
As you can see, an abundance of opportunity exists within this sector. If you’re thinking about operating a small business in this arena, however, there are a few things to keep in mind – namely, the stringent regulations governing the sale of CBD products in each state. While that may sound complicated, it doesn’t have to be, especially if you have a technology partner that knows this market. Xplor’s secure, comprehensive payment processing point-of-sale solution enables CBD retailers and industry partners to operate cost-effectively and manage day-to-day operations easily.
However, despite all of these opportunities, it’s important to remember that CBD is considered a high-risk category by many banks and payment processors, which means CBD businesses have traditionally struggled to establish themselves and make sales. With only a few payment providers currently supporting the CBD sector, CBD retailers have been left behind when it comes to payment acceptance – but luckily, Xplor is here to help.
2. California, Florida, and New York lead the CBD market.
California was the leading market for CBD in the U.S. in 2019 with estimated sales of US$730 million. Rounding out the top three were Florida and New York with about US$290 million and US$215 million in sales respectively.
Regardless of where your business operates, regulations vary from state to state, with additional regulations on both a local and federal level so it can be tricky for CBD business owners to navigate. This makes everything from building an ecommerce website, to marketing products, to accepting payments and distributing orders a challenge. But with the correct standards and technology in place, there’s no reason a CBD retailer can’t receive the same advantages as any other retailer. Xplor has a proven track record of providing smart software with embedded payment processing to make this simple for our customers.
3. The top uses of CBD are for pain management, stress relief, and as a sleep aid.
Did you think CBD was just for recreational use? Think again. According to a survey conducted in April 2020, 64 percent of U.S. adults use it for pain management, 49 percent reported to take CBD for stress, 42% take it for sleep and just 12% use it recreationally. Other uses include relief for headaches, and even as a supplement for pets.
If you’re thinking about entering this market, think about the technology you need carefully.
Whether you’re planning to sell in-store, online, or on the go, you can leverage the Xplor Pay point-of-sale solution to track, manage and streamline operations, build lasting communities of buyers through the ability to accept recurring payments, create loyalty or promotional programs, and launch email and text-based marketing campaigns.
Whether you’re an existing customer, or a small business owner thinking of taking advantage of this ever-expanding market, get in touch, and we’ll walk you through how our software can help your business thrive.