Hemp CBD brands face ‘identity crisis’Posted by On


It’s a grim time to be working in the hemp CBD sector.

Sales are still shrinking. Jobs have been slashed. And intoxicating products—including delta-8 THC— have overshadowed the CBD health and wellness movement as U.S. brands operating on tight budgets try to keep up with an everchanging patchwork of rules from one state to another.

Amid these challenges, and potential opportunities, firms must reckon with their present identities and decide who they want to become.

Should they continue to position themselves as marketers in the supplement health and wellness space, for example? Or is the smart money play to sell delta-8 THC and other intoxicating products? Or should hemp CBD brands branch off into other markets, including pharmaceutical investments?

The once-booming sector faces an “existential crisis to some extent or an identity crisis,” commented Bethany Gomez, managing director of the Brightfield Group, a market research firm focused on the CBD, cannabis and wellness industries. “Where do we fit?”

Shrinking hemp CBD market

Based on sales in recent years and projections for 2023, it’s hard to get jazzed about the U.S. hemp CBD business. The market contracted in 2022 by more than 6% to $4.4 billion, and excluding pharmaceutical sales, decreased 8% to $3.8 billion during a year of record inflation, Gomez reported.

“[T]hat’s…

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