The cannabidiol (CBD) market is continuing to grow, and it provides a new market area for convenience stores. Before considering CBD sales, it’s important for c-stores to check to ensure CBD is legal in your market area. If it is, this segment can appeal to a number of different demographics. Here are a few reasons why CBD can be a good fit for convenience stores.
It Fits With a C-Store’s Other Offerings
Customers are already used to seeking out a convenience store for tobacco and alcoholic beverage purchases, so CBD fits well in convenience stores. Plus, c-stores already offer the product areas that now feature CBD like baked goods, drinks, gummies and vape.
It Resonates With a Wide Range of Consumers
A number of consumers now turn to CBD for anxiety relief, relaxation, wellness and pain relief. Baby Boomers are turning to CBD products to help with arthritis and other ailments; the wellness customer is turning to CBD for relaxation and wellness benefits; athletes are selecting CBD for pain relief; and Millennials and Gen Z are using it for everything from anxiety relief to pain management. Some customers even seek out CBD for their pets. Pet CBD products are especially in demand around holidays like the Fourth of July, because CBD has been shown to help keep pets calm during fireworks.
It’s a Growing Category
Brightfield Group noted that CBD sales in the U.S. reached $4.7 billion in revenue in 2021, and it’s expected to reach $12 billion by 2026.
It Can Help Build Baskets
CBD products come in a wide range of price points. Customers new to the CBD category might start off with an impulse buy of a CBD topical oil or some CBD gummies at a modest price point, and then upgrade to more expensive offerings on future visits. It’s important to offer a range of CBD types from edibles to topicals in varying price points. This can help reach various customer needs and allow regular CBD customers to experiment. Regular CBD customers may be more likely to upgrade to more expensive, high margin products that can help drive profits for c-stores. Make sure customers know you offer CBD products, and that employees are knowledgeable about the various CBD items, so they can help answer customer questions.
It Can Position a C-Store for the Future
Some CBD customers might not feel comfortable going to a dispensary to buy CBD and might feel more comfortable purchasing CBD products at a c-store. And, the market is growing beyond CBD, creating new opportunities. Additional cannabinoids, such as cannabigerol (CBG) and cannabinol (CBN) are also being highlighted for their potential benefits and used in products today. If cannabis becomes legal at the federal level and at retail in the future, having a base of CBD customers in place can position retailers to capitalize on cannabis sales in the future, if the opportunity arrives.