Why up to two-thirds of brands could fail
| | | | | | | | | | AdFreak | | | | August 12, 2020 | | By David Griner |
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| | | After CBD's Explosive 562% Growth in 2019, Brands Now Face an 'Extinction Event' | |
| | | | A reckoning is coming for brands in the CBD industry. But why? The category had an unprecedented year of expansion in 2019, to the tune of 562% growth, and despite catastrophic business conditions this year, it's still on pace to grow 14%. Even regulators seemed to be growing OK with it, with the 2018 Farm Bill separating non-psychoactive hemp (from which much CBD is derived) from other types of cannabis. But as my colleague T.L. Stanley reports in her in-depth article, available exclusively to Adweek subscribers, the CBD category's outlook is grim due primarily to saturation. With the glut of CBD startups that flooded the space last year and the abundance of supply thanks to the legalization of hemp, brands are fighting for their lives—often turning to price cuts. The result is likely to be what one analyst calls "an extinction event" that could mark the end of up to two-thirds of the brands in the CBD category. Who will survive, and what will be left of them? You can find out in our article. Have you tried CBD? What's your experience been like? Let me know at the email below or on Twitter at @Griner. David Griner
Creative and Innovation Editor, Adweek
David.Griner@Adweek.com
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