Recent years have marked a turning point in CBD’s journey from retail novelty to mainstream product offering; as the category becomes more established—and as retailers and consumers become more knowledgeable—the future for CBD looks promising. In fact, Statista predicts that dollar sales of CBD products will continue to increase year over year, estimating sales to reach nearly $7.9 billion by the end of 2022—and more than doubling by 2026.
Still, for c-stores interested in retaining new CBD consumers, converting more shoppers into the category and competing against other retailers, focusing on top purchase drivers—and identifying purchase deterrents—is crucial.
Building trust with informed consumers
Among consumers who are hesitant to try CBD, also known as cannabidiol, it’s not necessarily a lack of interest in CBD’s potential benefits that keeps them from purchasing. Rather, it’s due to a lack of information and a need for a go-to brand they can trust: The top three reasons why adults in the U.S. say they don’t want to try CBD are that they don’t trust the product or manufacturer, don’t believe it will help them or they worry about psychoactive effects, according to Statista. What’s more, 34% of new users say they haven’t found the right CBD brand yet, according to High Yield Insights.
This, however, presents an opportunity: By introducing shoppers to their new favorite brand for CBD and building trust, retailers can help encourage loyalty—both to the product and to the c-store.
Offering the right products
In addition to finding a standby brand for CBD, shoppers also keep key preferences for product format and priorities for product benefits in mind while shopping the category. CBD may assist with promoting relaxation, focus, recovery and a sense of balance and contentedness, for example.
Familiar formats are a big draw, as they help mitigate the novelty of the product for first-time consumers. According to Technomic’s Q4 2021 C-Store Consumer Marketbrief, 36% of consumers say they purchase CBD vapor products at least weekly; 35% say the same for CBD-infused soft drinks and sodas; and 29% say the same for tinctures.
Getting pricing right
As with any retail category, consumers are seeking a good value when they shop the CBD category. Reasonable prices aren’t just important to converting new customers, in fact, but also to maintaining current customers: High Yield Insights reports that 31% of consumers who say they’ve stopped using CBD say it’s due to the price. Inversely, lower prices are the No. 1 purchase driver cited among consumers who have started or resumed using CBD, followed by easier access at No. 2 and unbiased research at No. 3, according to a High Yield survey.
For retailers, finding the right CBD supplier is necessary to meeting each of the above consumer demands—offering trustworthy brands, convenient products and affordable prices. Especially when navigating a less familiar category, it’s important for retailers to choose a supplier who also serves as a strategic partner—who balances quality and affordability to afford a high sense of value to the customer.
Forth CBD, a brand from E-Alternative Solutions, is a one-stop shop for retailers seeking quality CBD products in the formats consumers most prefer, including beverages, vapor, and tincture drops.
To learn more, visit EalternativeSolutions.com/Forth.
*Data sourced from Statista 2022 and High Yield Insights 2022.
This post is sponsored by EAS