opportunities but also threats

Impressive outlets, restored image, competitive material costs… but difficult legal status quo and increased competition. Cannabidiol, a non-psychotropic substance extracted from cultivated hemp, develops in a very specific macroenvironment. Transcript…

The French CBD market is collecting good points

Entrepreneurs and other project managers who want to join CBD as retailers, semi-wholesalers or wholesalers will benefit from a relatively favorable macro environment.

# 1 Lots of opportunities

In France, more than 7 million regular or occasional consumers of cannabidiol-based products. In any case, this is what follows from the latest report of the inter-professional cannabis trade (Interchanvre), the figures of which were transmitted by very serious media LSA Conso. The opportunities are impressive, and they must continue to grow as the image of cannabidiol is rehabilitated… which brings us to the next point.

# 2 CBD gets rid of ideas

As research pays off, cannabidiol sees its image gradually recovering. Indeed, the emphasis on its anti-inflammatory, analgesic and relaxing properties has greatly contributed to the awareness of the general public. We also quote the statement of the Scientific Committee of the World Health Organization (WHO), which explains that the CBD ” has no potential for abuse and does not harm health “.

Coming to the market of national brands and gaining significant trust capital also contributes to this rehabilitation. Carrefour has indeed signed partnerships with French brands offering CBD products, and Monoprix has opened 250 CBD locations across France. The brand is also expanding communication campaigns around its range. The company recently distributed CBD Truck in the capital and on the Ile-de-France to reassure consumers that there are no psychotropic or addictive effects.

In the United States, cannabidiol benefits from highly influential VRPs, especially among leading athletes. Among them are Megan Rapino, Mike Tyson, John Isner and Alex Morgan. The world of professional sports is also opening the door to sponsorship for major CBD product brands. This is, for example, the case of the UFC.

# 3 The cost of the material is relatively competitive

In France, 60% of the production of cultivated hemp, the raw material from which cannabidiol is extracted, is concentrated. This observation is reflected in the availability of the material throughout the year, as well as in the relatively competitive cost. Therefore, wholesalers, semi-wholesalers and retailers can receive deliveries with complete peace of mind and offer attractive selling prices. This is an important point because Choosing a CBD wholesaler will be critical to the success of your business.

№4 Manufacturers have successfully diversified supply

There was a time when cannabidiol was presented exclusively in the form of leaves or flowers, the packaging was not very “playful”. Today, retailers can offer massage oils, e-cigarette fluids, chewing gum, cookies, dark chocolate, cannabidiol-based teas and energy drinks, increasing the average basket of their customers. They can also open up to new customer segments and increase their commercial efficiency.

Investing in the CBD: legal status quo and intensity of competition

Entrepreneurs wishing to invest in CBD must be aware of the threats that could undermine their project.

№ 1 Legal uncertainty, the sword of Damocles

On December 31, 2021, a ministerial decree violated the already volatile CBD market. A brief press release did ban the flowers and leaves of the CBD in their purest form, much to the dismay of professionals. This decision will be temporarily suspended in a few days by the State Council. Today, the status quo until the final decision of the State Council prevails.

№2 Reluctance of banks

This legal uncertainty makes it difficult to finance CBD projects, as banks are particularly reluctant to allocate funds in a perfectly legal market. Therefore, project managers should apply to foreign banks to finance their project.

# 3 Intensity of competitions

The number of stores specializing in CBD products has grown from 400 in 2020 to more than 2,500 in 2022, which is more than 600%. True, the market is far from saturated, but competition is intensifying, especially with the advent of big names in mass distribution, such as Carrefour and Monoprix.