latest-news-headlines Market Intelligence /marketintelligence/en/news-insights/latest-news-headlines/major-retailers-jump-onboard-cbd-bandwagon-51217059 content esgSubNav
In This List

Major retailers jump onboard CBD bandwagon


S&P Capital IQ Pro | Powering Your Edge


S&P Capital IQ Pro | Unrivaled Sector Coverage

S&P Capital IQ Pro | Powered by Expert Insights


Enterprises are missing out on 24B by not optimizing cloud spending not going multicloud

Major retailers jump onboard CBD bandwagon

We have covered in detail the burgeoning market for cannabis-derived products, from brewer Constellation Brands Inc.'s C$5 billion investment in cannabis producer Canopy Growth Corp. to the rapidly increasing private equity and venture capital activity in the space.

The latest development in this trend came in March when major pharmacy chains CVS Health Corp. and Walgreens Boots Alliance Inc. both said they would start selling products that contain cannabidiol.

CBD has been touted as a treatment for a host of ailments, including anxiety, nausea and insomnia. It contains minimal THC, the psychoactive compound in cannabis, and has been marketed as a dietary supplement, a recovery aid for athletes and a painkiller. It can now be found in myriad products including creams, candy, oils and drinks. For now, CVS and Walgreens are limiting their offerings to topical applications.

Research into the health benefits of CBD is limited so far, as is federal regulation. "No one really understands edibles or beverages or skin creams that have cannabis in them because we're not allowed to research these products that are produced at the state level and furthermore, the federal supplier of cannabis doesn't manufacture these products," Jeffrey Chen, director of the UCLA Cannabis Research Initiative, told S&P Global Market Intelligence.

This roadblock has not put off some of the largest retailers in the U.S., which see the opportunity to broaden their product ranges and attract a new category of customer. Estimates for the potential value of the market vary wildly, from $5 billion in five years to $22 billion by 2022, but the rapid growth to date shown in the chart below is proof enough of concept. Barring any major regulatory backtracks, expect to see many more CBD products on the shelves of big-name retailers in the months and years to come.

Chart of the week

SNL Image


Surging US deficit with EU gives ammo to Trump as car tariff deadline looms

The U.S. current account deficit with the EU grew by half in 2018 as exports from Europe leaped by more than $50 billion.

Trump tariff threat on Mexican-made cars risks own goal for US auto industry

President Trump may not even have the legal authority to impose the threatened 25% tariffs on Mexican auto imports.

New legislation would expand electric-vehicle tax credit

The Driving America Forward Act would add an additional 400,000 vehicles to the number of electric cars automakers must sell before the tax credit starts phasing out.


Retail chains' entry to boost sales of topical cannabidiol products

CVS, Walgreens and other major chains are likely to focus on nonedible CBD products such as creams and patches that are likely to avoid the toughest scrutiny from regulators, experts say.

Experts: Sears' new home goods stores might be coming a little too late

After narrowly surviving liquidation, the department store chain announced plans to test a new retail concept focusing on appliances and other home products.

UBS: 75,000 retail stores need to close by 2026 as e-commerce continues to thrive

The most vulnerable categories expected to close thousands of stores in the next few years include clothing and apparel, consumer electronics and home furnishing.

Food, Beverage & Tobacco

Food companies notch earnings beats in shadow of Kraft Heinz challenges

Most large U.S. food companies beat expectations for adjusted EPS in their latest earnings, highlighting efforts to find faster-growing brands and shed ones expanding more slowly.

Investors seek cannabis industry gems as US legalization looms

With the nascent cannabis industry projected to triple in the next seven years, investors adjusting to the possibility of a legalized infrastructure are beginning to pick and choose cannabis investment targets from an abundant pool.

US wholesale food price growth slows in March, helping grocer margins

Year-over-year producer prices rose more slowly during the month than in February as retail prices grew at a slightly faster rate, according to federal data.

Panjiva: Proposed tariffs on wine, brandy could cause hangover for EU producers

The Trump administration's newly proposed tariffs could harm European producers if the so-far unannounced duty rates cause a shift in consumer behavior.

Consumer Edge is a weekly collection of critical developments across the automotive; retail; and food, beverage, and tobacco industries that draws on exclusive analysis and value-added content from the Consumer News team at S&P Global Market Intelligence.