The CBD market is predicted to grow from $9.86 billion in 2021 to $136.64 billion in 2029, according to a 2022 report by MicroSmallCap.
Market segment that are driving this growth are pain relief, skincare, and other medicinal uses.
Unlike other cannabis products that produce a high, CBD products can be sold in regular retail stores in some states and regions. It is still early days in the projected gold rush for CBD products.
Because the competition for CBD retail sales is wider than for other cannabis products, the merchandising for CBD must be top-notch, and help establish customer buying patterns for dispensary stakeholders.
What is CBD?
Cannabidiol (CBD) is one of 113 known cannabinoids in cannabis. Cannabinoids are compounds that can interact with the biological system known as the endocannabinoid system (ECS). These are receptors mainly in the brain and nervous system, but also in other organs and the immune system. Another well-known cannabinoid is Tetrahydrocannabinol (THC), which is the psychoactive agent in cannabis. Much progress has been made since the 1990s in studying the effects of cannabinoids on the human body, but they have been shown to have various effects on appetite, stress response, metabolism and energy, anxiety, analgesia, sleep cycles, and the autonomic nervous system.
CBD is an essential component of medicinal marijuana, and preliminary studies suggest that CBD may counteract some of the psychoactive effects of THC.
Cannabidiol oil may be used medicinally to alleviate stress, reduce pain, reduce some cancer-related symptoms, reduce muscle spasticity from multiple sclerosis, help some neurological disorders, and reduce symptoms of certain mental illnesses.
CBD does not make people “high”. Nearly all the psychotropic effects from marijuana come from THC.
Though the legal status of CBD has been in flux for many years, CBD oil is obtainable all through the US. The Food and Drug Administration (FDA) relaxed regulations on clinical trials for CBD in 2015, and the 2018 Farm Bill which legalized hemp made it virtually impossible to outright make CBD illegal in the US.
Merchandising CBD in Retail Environments and Dispensaries
CBD displays and merchandising is a critical part of raising awareness of these products in a retail setting and increasing sales to targeted customers. Below, we go over some best practices and things to consider when marketing CBD on your sales floor.
With cannabis and CBD products legalized for medicinal use in many states and territories, new customers will require education about which products can benefit them most. Using multimedia displays that leverage interactive content can help impart information to customers. Product information can also be embedded in store displays to show CBD levels and additional data on cannabidiol products.
Lead Customers to Selected Products
Designing a dispensary layout to lead customers down a specific path to highlighted products is another strategy used in retail store design. Place your best-selling products in this customer path to increase sales on high-margin or popular items.
Most customers in the US and Europe turn right when they enter a store entrance. Selected products can be displayed along this path using table displays, product display cases, wall displays, and countertop displays.
Use Graphics Tastefully
Eye-catching graphics and product displays can be used to draw attention to specific CBD products. Be sure to consider what effect you are aiming for. Loud colors and gawdy graphics can send the wrong message. Most dispensaries use subtle graphics and professional displays to divert customer attention in a specific direction. Creating an environment that feels safe, professional, and luxurious is always a good strategy in cannabis and CBD retail.
Establish Trust & Credibility
Cannabis-derived products had a negative stigma in popular opinion for many decades. Although medicinal marijuana, and more recently, CBD products have extensive clinical research to back up the prescribed benefits, some newer customers may still be skeptical. It is crucial to establish empirical proof of credibility with these fledgling CBD customers.
One method of establishing trust is having transparency about the source, ingredients, testing methodology, production, and quality control of each CBD product. Budtenders must be the first to be educated on each of these products, so they can answer customer questions confidently.
Information may also be displayed on the packaging or incorporated into the display itself. Printed brochures or digital presentations may also be used to explain the benefits, alleviate concerns, and answer questions about CBD products.
Bud Bar Displays has a full selection of CBD display cases and retail display fixtures for CBD products.
Countertop Displays Can Be Useful
As customers approach the checkout station, they may see countertop displays at eye level, displaying selected products. This is a chance to promote specific CBD products to customers, encouraging POS impulse buys.
Professional Display Cases
Dispensaries that display products at a fixed budtender station, or a fixed point-of-sale register should have exquisite display cases for CBD and cannabis products.
Customers can see a variety of products in a well-lit case, and have the ability to select from a set of well-informed choices. This is an opportunity for budtenders to answer any questions, and help customers choose the best CBD products for their applicable needs.
Need Personalized Help with Your CBD Displays?
Designing a customer experience for your dispensary is an important task. If you need help finding the perfect cannabis, CBD, and extract display cases and fixtures, Bud Bar Displays is here to help. For 35+ years, our leadership team has been designing and building retail displays for some of the most memorable stores and retail events. If you want to improve your dispensary merchandising, Bud Bar Displays has a complete product line to help you market your products more effectively. Our online store features a line of bud cabinets, CBD displays, cannabis sniff jars, and product displays.
Don’t see what you need? Our design team can help you create custom retail displays for your dispensary. Contact us if you have any questions, or give us a call at 916.858.2000.