CVS & Walgreens Looking to Dominate w/ CBD

CVS, Walgreens To Lead $23 Billion CBD Market By 2023

Retail chains led by CVS Health and Walgreens Boots Alliance are expected to dominate the emerging multi-billion-dollar U.S. market of CBD, the compound derived from cannabis, according to a new report.

CBD is gaining in popularity among consumers with the legal CBD market projected to surpass $23 billion in annual U.S. sales by 2023, an analysis by market research firm Brightfield Group shows. This year, such sales are projected to be $5 billion - a sevenfold increase over 2018, Brightfield Group said. 

“The CBD market has been growing rapidly, but we will see unprecedented growth in 2019,” said Brightfield managing director Bethany Gomez in a statement accompanying the firm’s 75-page report. “The bulk of this growth is coming from large retailers like CVS, Walgreens, and Kroger entering the market and providing that availability to consumers.”

Retailers including CVS, Walgreens and Rite Aid have yet to disclose specific sales in their most recent earnings reports, but have said the pilot markets where they have begun sales of CBD products are doing well.

“During the first quarter, we began piloting the sale of CBD creams, lotions and lip balms at Rite Aid stores in Oregon and Washington to better meet the needs and preferences of our customers in those communities,” Rite Aid chief operating officer Bryan Everett told analysts last month on the company’s fiscal first quarter earnings call. “Response from customers has been…

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Greg Stearns