There’s no denying that the CBD (cannabidiol) industry has grown incredibly fast since the legalization of hemp-derived CBD in 2018. The global market for CBD hit $9.4 billion in 2023, just a scant few years after legalization in the US, and it’s not slowing down—by 2027, it’s expected to hit $31.85 billion.
Those are some massive numbers, and it’s worth asking: what’s driving all that growth?
And more importantly, how can retailers capitalize on the CBD market?
To answer these questions, we took a dive into the CBD industry and identified some emerging trends in the space. Whether you’re someone looking for business opportunities or you’re a CBD retailer who wants to grow your business, here are the top trends to keep an eye on.
In this blog, we’ll cover 10 trends to keep an eye on in 2025:
- Expanded interest in hemp-derived cannabinoids beyond CBD
- More interest in targeted CBD formulations
- Advanced delivery methods for CBD
- Microdosing CBD is on the rise
- The pet segment presents a massive opportunity
- Seasonal sales trend patterns will hold
- Pre-rolls on the rise, but gummies and oils will still rule
- Increased transparency and quality standards
- A renewed focus on customer education
- Brick and mortar + ecommerce is a winning combination
The Value of a Unified Payments and POS Solution
An in-depth look at how a streamlined platform for payment processing can transform the way you operate your business, especially compared to legacy systems and patchwork solutions.
1. Expanded interest in hemp-derived cannabinoids beyond CBD
Beyond the well-known CBD, there exists a spectrum of other compounds. Cannabinoids like CBG (cannabigerol), THCV (Tetrahydrocannabivarin) and CBN (cannabinol) are gaining attention for their unique properties, adding an extra layer of complexity to the world of CBD-infused products.
More controversially, compounds like Delta-8 and Delta-9 THC have come on the market as well, but these compounds are subject to more regulation as states take notice of them.
As customers become more and more educated about CBD, and as more customers try CBD, developing CBG, THCV and CBN products and educating customers about their potential will help CBD retailers stand out in 2025.
2. More interest in targeted CBD formulations
CBD isn’t just about general wellness anymore—consumers are seeking targeted solutions. As the market matures, personalization is becoming a key differentiator. From CBD for sleep and anxiety to pain relief and focus, products that are formulated for specific outcomes are seeing increased demand. This trend is heavily influenced by the broader wellness movement and consumers’ growing interest in functional products that fit seamlessly into their routines.
In 2025, consider offering a diverse range of targeted CBD products (while remaining compliant with rules and regulations on what you can and cannot claim, of course). CBD retailers should expand their inventory to include clearly labeled, benefit-specific formulations. Consider product bundling by need, like a sleep kit featuring a nighttime tincture, calming gummies and a lavender-infused balm.
If you manufacture your own CBD line, explore unique formulations with added botanicals like melatonin. And if you’re sourcing products, prioritize brands with transparent labeling and clinically tested ingredients.
3. Advanced delivery methods for CBD
As the CBD industry matures, so does the science behind how it’s delivered. That’s where advanced delivery methods like nanoemulsions, liposomal technology and transdermal patches come in.
These innovations enhance the bioavailability of CBD, allowing it to absorb more efficiently into the bloodstream. In fact, nanoemulsified CBD has been shown to have higher absorption rates than traditional oil-based formulations, which can lose effectiveness during digestion.
This shift is being driven by a more informed and results-driven consumer base. Shoppers are paying closer attention to not just what they take—but how it works in their body.
For retailers, this presents an opportunity to stand out by offering products that reflect cutting-edge delivery science. Stocking advanced formulations and educating customers on how they work positions your store as a trusted, knowledgeable source in an increasingly competitive marketplace.
4. Microdosing CBD is on the rise
The way people are using CBD is changing, and one of the most interesting shifts is the growing trend of microdosing, or taking very small, subperceptual doses to get subtle effects.
Microdosing first gained traction in discussions around psychedelics, but the idea of using tiny amounts of a substance for therapeutic benefit has found a home in the cannabis world too. We’re seeing a clear move towards this approach in the broader cannabis market.
Why are people interested? It boils down to wanting the potential benefits of CBD without feeling altered in a significant way. For some, it’s about:
- Gentle relaxation to take the edge off stress
- A little boost in focus to get through the workday
- Easing pain or discomfort without the side effects of stronger medications
As a retailer, this means you’ve got an opportunity to meet this need. You should think about stocking products that are well-suited for microdosing, like:
- Tinctures where it’s easy to measure out precise drops
- Capsules that provide consistent, low doses
- Edibles that are pre-portioned for microdosing
5. The pet segment presents a massive opportunity
It’s not just people who are fans of CBD products. Pets (or at least the humans who own them) are also adopting CBD.
Almost three-quarters of current CBD consumers have pets, and almost one-quarter of U.S. pet owners already use CBD for themselves, their pets or both. Nearly 26% of U.S. adults with dogs are using hemp-CBD products. Half of those already use CBD for their dogs, while the other half only use it for themselves.
What does this mean for retailers?
Going into 2025, expect to see CBD for pets go from a niche market to more mainstream. If you’re a CBD merchant, you may want to consider expanding your range to include merchandise for your customers’ furry friends. If you’re a pet supplies store, see if it makes sense to start carrying CBD products.
But don’t just carry any CBD pet products. Manufacturing CBD products with organic materials helped boost the pet products industry. Pet owners are clearly concerned about the quality of CBD products.
If you manufacture your own CBD products, emphasize the natural materials you use (and/or boost your supply chain to make it more organic). If you’re looking to carry CBD products by other companies, select a supplier with a lot of emphasis on rigorous testing and organic materials.
6. Seasonal sales trend patterns will hold
While the cannabis market is known for its rapid evolution, certain seasonal sales trends tend to persist, offering a degree of predictability you can use to your advantage. Recognize these patterns and strategically plan inventory and sales accordingly in 2025.
Think about the differences in consumer behavior as the weather changes. During the summer months, for example, there’s often an uptick in demand for products that align with outdoor activities and social gatherings. Pre-rolls become popular for their convenience and portability at events, while beverages offer a refreshing way to consume CBD. Consumers may also gravitate towards lighter, more uplifting strains or formulations during these times.
Conversely, as winter sets in and people spend more time indoors, preferences may shift. Vapes, for instance, can become a favored option for convenient and less odorous indoor consumption. We can also see higher-volume purchases of flower or concentrates as consumers spend more time at home. Products that offer warming or soothing effects may also experience increased demand.
To capitalize on these trends, adopt a proactive approach. Begin stocking up on summer-focused products well in advance of the season, ensuring you have ample supply to meet the anticipated surge in demand.
7. Pre-rolls on the rise, but gummies and oils will still rule
The cannabis market is seeing an interesting shift, with pre-rolls gaining significant traction. Pre-rolls are increasingly closing in on the top spot in cannabis sales in Canada’s rapidly maturing legal cannabis market, for example, demonstrating a clear consumer preference for convenience and ease of use.
This trend presents an opportunity for CBD retailers as well. While the focus has traditionally been on oils, tinctures and edibles, CBD pre-rolls are emerging as a new product category that may not have been fully capitalized on before. Consider that many consumers appreciate the familiar consumption method, but seek the therapeutic (and legal!) benefits of CBD without the psychoactive effects of THC. CBD pre-rolls cater to this preference, offering a convenient and accessible way to experience CBD.
However, despite the growing popularity of pre-rolls, it’s important to remember that gummies and oils remain dominant forces in the CBD market—don’t chase this trend at the expense of the tried and true CBD winners.
Strive for a balanced inventory that caters to both evolving trends and enduring consumer preferences.
8. Increased transparency and quality standards
The CBD industry has transformed from a relatively obscure niche into a mainstream wellness phenomenon. However, as the popularity of CBD has soared, so have consumer expectations.
Savvy customers are no longer satisfied with vague promises—they demand transparency, safety and superior quality when it comes to CBD products. Clearer labeling, third-party testing and higher-quality standards have become non-negotiable factors in the eyes of the discerning CBD consumer.
Even the FDA is getting involved, declaring in 2023 that existing regulatory frameworks for CBD are insufficient and that they plan to work with US Congress to develop updated rules.
For retailers, this signals a positive evolution within the industry. These developments provide an opportunity for retailers to distinguish themselves by prioritizing product quality. As the regulatory landscape evolves, customers will increasingly turn to brands that demonstrate a proactive commitment to safety and quality.
Take Lightspeed retailer SunMed, Your CBD Store, as an example. They develop their own premium, proprietary CBD products and put them through rigorous third-party testing. To earn customer trust, they lead that message, even letting customers view their lab reports to prove they stand behind their products.
Proactively investing in transparent labeling, third-party testing and sourcing higher-quality CBD products not only safeguards your customers, but also secures your position as a responsible and reputable retailer.
9. A renewed focus on customer education
Despite CBD’s surging popularity—one poll found that 60% of respondents had tried a CBD product—there remains a significant knowledge gap among consumers. For many, the world of CBD and its associated cannabinoids is a new and unexplored frontier. Studies have found that consumer knowledge, such as what levels of CBD mean, is low.
Customers may have heard about CBD, but not know its effects or what products they can access; if they do know about CBD, they might still lack awareness regarding other cannabinoids.
In order to make meaningful sales, CBD retailers must become educators first. Brands are shifting their focus from mere product promotion to empowering consumers with knowledge about CBD’s benefits, proper usage and potential effects.
But a need for education isn’t new—it’s been the name of the game since CBD was legalized. The real trend here is how quickly and comprehensively some retailers are delivering that education, which puts them in a prime position to dictate the conversation about CBD.
Successful CBD retailers are leveraging various platforms, from social media and websites to in-store workshops and informative packaging and email campaigns, to disseminate knowledge.
SunMed, Your CBD Store, reaches out to customers the day after they visit a Your CBD Store franchise location in person. Using purchase data from Lightspeed, SunMed crafts comprehensive educational emails that help customers continue their CBD discovery journey even after they leave the store.
“The day after they visit a store, they’re receiving the first email communication from us,” says Wilfredo Rodriguez, CFO of SunMed, Your CBD Store. “And it’s so critical for us to have that detailed transactional data in order to be able to engage with the customers at a very individualized level.”
They’re not waiting for customers to look up CBD knowledge themselves, and the quick send—right away, not a week later—helps them reinforce the in-store education they just got.
This quick educational approach not only demystifies CBD but also establishes retailers like SunMed, Your CBD Store, as trusted sources of information.
10. Brick and mortar + ecommerce is a winning combination
Generally, CBD products are best sold offline, because consumers typically have a lot of questions about cannabidiol. It’s always great to have in-store associates explain how different oils, supplements, creams and other items work, so shoppers can make informed decisions.
But once a customer is educated on CBD and confident in their purchases, they’re probably going to want the convenience of ecommerce at least some of the time. If they can’t turn to you, they’ll find a competitor.
It’s more important than ever for CBD merchants to adopt an omnichannel approach to retail. If you’re already selling offline, be sure to set up shop online. And if you already have an ecommerce site, don’t overlook brick-and-mortar retail. The CBD space is becoming more crowded; having a strong online and offline presence is the best way to compete.
The good news is launching an online arm of your business doesn’t have to be hard. Setting up an ecommerce store is easy with Lightspeed eCom’s Instant Site—just pick a pre-made theme, customize it, and go.
Selling CBD? Arm your retail business with the right tools and data
With the CBD industry growing and changing rapidly, keeping up can be a challenge.
- What products should you stock up on?
- What’s the next big thing?
- Which customers should you market to?
The best way to stay on top of everything is to arm your business with a retail management system that gives you the tools and data you need to get ahead.
Lightspeed’s commerce platform, from our POS to our inventory management and customer loyalty software, is the best choice for your CBD store. Whether you sell in one store or many, at events or trade shows, Lightspeed can power sales, customer management, stock control and reporting for your CBD business.
Click here to discover how Lightspeed can take your CBD retail business to new heights.
CBD Trends FAQs
How big is the US CBD market?
The US CBD market has experienced significant growth in recent years. In 2023, the North American CBD market was valued at approximately USD 6.7 billion and is projected to grow at a compound annual growth rate (CAGR) of 14.2% from 2024 to 2030.
Is the CBD industry declining?
While the overall CBD industry has experienced a slowdown—largely due to regulatory uncertainty and pricing pressures—it’s not universally declining. US CBD sales dropped from $3.8 billion in 2023 to an estimated $3.4 billion in 2024. However, sub-categories like CBD beverages and skincare products are still showing growth, driven by consumer interest in wellness and functional ingredients. The future of the CBD market may hinge on evolving regulations and innovation within these niche segments.
Are CBD products still popular?
Despite recent market challenges, CBD products remain popular among consumers. According to a Forbes Health survey, U.S. adults consume CBD in various forms, with gummies and other edibles being the most popular. This ongoing consumer interest suggests that CBD products continue to hold a significant place in the wellness market.
Is the CBD market oversaturated?
The CBD market is experiencing rapid growth, and there have been concerns about potential oversaturation in certain segments. The market has become increasingly crowded with a wide range of CBD products, brands and retailers.
While this competition is a sign of the industry’s popularity and expansion, it has also led to challenges for businesses in terms of differentiation, quality control and market positioning.
As with all popular markets, retailers must work hard to stand out.
Is CBD a booming business?
The CBD industry can be considered a booming business. The increased popularity of CBD products for various purposes, including wellness, relaxation and potential health benefits, have contributed to the industry’s expansion.
The growth of the CBD industry is fueled by factors such as increased awareness of CBD, changing attitudes toward cannabis and the pursuit of alternative wellness options. Many consumers have sought out CBD products for their perceived therapeutic properties without the psychoactive effects associated with THC.
What percentage of Americans use CBD?
One poll found that 60% of Americans surveyed have tried CBD, with strong differentiation by age—only about a third of Americans aged 18 to 25 have used CBD, while 90% of Americans 77 and up have used it.
News you care about. Tips you can use.
Everything your business needs to grow, delivered straight to your inbox.
