The health and wellness industry represents more than $4 trillion in revenue worldwide. With the recent inclusion of CBD-related products, the beauty category has the potential to accelerate its growth to $25 billion over the next decade, accounting for up to 15% of the skincare market.
Trend or Lifestyle?
As we highlighted in our Summer 2019 Retail Spotlight Report, “The Fountain of Wellness in Healthcare,” views on cannabis and CBD have changed dramatically over the last decade. This broader acceptance has paved the way for a handful of CBD brands to disrupt the beauty category. One such company is Green Growth Brands, which is one of the more aggressive players to enter the marketplace. With more than 50 locations of their Seventh Sense Botanical Therapy brand, now available in 41 states, Green Growth Brands represent an 80% market share in American shopping malls — a remarkable feat considering this is their first year of business.
Green Growth Brands joins a tribe of emerging CBD retailers intent on bringing cannabis byproducts to the masses, one audience segment at a time. Below is our list of CBD retailers to watch:
- Lord Jones, a woman-owned business founded by Cindy Capobianco, is a pioneer in the CBD industry. Their high-potency CBD confections edible gummies and chews are crafted in small batches with artisanal chocolate and fruit infusions. Lord Jones is the first CBD skincare brand to launch at Sephora, and their most popular item is the Lord Jones High CBD Formula Lotion, a restorative CBD-infused moisturizing lotion. The company partnered with Equinox to deliver a series of health and wellness recovery events called Higher Healing, as well as The Standard Hotel which plans to feature Lord Jones’ products in minibars.
- Neiman Marcus, Free People and, most recently, Ulta carry skincare brand Cannuka. Founded by Michael and Kelly Bumgarner, the Cannuka formula combines the anti-inflammatory and pain management potential of CBD with the antioxidant and antibacterial properties of Manuka honey. Manuka honey, native to Australia and New Zealand, has long been known as a natural healing remedy and alternative medicine.
- Interest in CBD products is not limited to lifestyle apparel and department store brands. Charlotte’s Web, which produces high-quality hemp extract oils, gummies and lotions for humans and dogs, aims to make CBD products available for as many people as possible. The brand has been aggressively developing distribution details to make good on that promise. Last month, Charlotte’s Web announced that their topical products will be distributed throughout the Kroger Family of Stores, including: Kroger, Dillons, Fry’s, Fred Meyer, King Soopers, Mariano’s, Pick ‘n Save, QFC and Smith’s.
- California-based MedMen has set its sights on becoming the Amazon of the cannabis dispensary market. Its recent acquisition of PharmaCann, a New York-based firm will double the number of state licenses in the MedMen portfolio, making them the second-largest marijuana dispensary in the nation. Co-founders, Adam Bierman and Andrew Modlin are hedging on the legalization of medicinal and recreational use in popular states like Florida and New York, where they have made sizable retail real estate investments.
- Brightfield Group projects Cannabis-infused drinks will bring in significant value to the CBD market, double its growth rate by 2021. All good news for Lowell Farms, one of the most well-loved pre-roll brands in the state of California, that is opening the first-ever cannabis cafe later this month. The space, which will sell cannabis-infused products, intends to create community by fostering educational and responsible consumption.
As we shared in our report, one of the major consumer concerns is how to identify trustworthy purchasing outlets to obtain CBD products. Retailers who partner with brands to inform and engage consumers on the medicinal benefits of CBD as a healing agent are sure to capitalize on its future success. As retail continues to innovate on its ever-changing journey, consumers are opening up to the idea of welcoming CBD as the latest lifestyle trend. An educated consumer is the best consumer, and the more they know the more likely consumers will shop in-store and online.
Anjee continues to be an insatiable enthusiast of all things retail. She’s a student of culture with a pulse on future shoppers and the fleeting trends constantly changing the retail landscape … driving retailers, landlords and developers crazy!