Why up to two-thirds of brands could fail ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 
Not coming through? Click here to view in browser
 
 
 
 
AdFreak
 
August 12, 2020
By David Griner
 
 
After CBD's Explosive 562% Growth in 2019, Brands Now Face an 'Extinction Event'
 

A reckoning is coming for brands in the CBD industry.

But why? The category had an unprecedented year of expansion in 2019, to the tune of 562% growth, and despite catastrophic business conditions this year, it's still on pace to grow 14%.

Even regulators seemed to be growing OK with it, with the 2018 Farm Bill separating non-psychoactive hemp (from which much CBD is derived) from other types of cannabis.

But as my colleague T.L. Stanley reports in her in-depth article, available exclusively to Adweek subscribers, the CBD category's outlook is grim due primarily to saturation.

With the glut of CBD startups that flooded the space last year and the abundance of supply thanks to the legalization of hemp, brands are fighting for their lives—often turning to price cuts.

The result is likely to be what one analyst calls "an extinction event" that could mark the end of up to two-thirds of the brands in the CBD category.

Who will survive, and what will be left of them? You can find out in our article.

Have you tried CBD? What's your experience been like? Let me know at the email below or on Twitter at @Griner.

David Griner
Creative and Innovation Editor, Adweek
David.Griner@Adweek.com


Dive deeper with an Adweek Pro Subscription, your key to the inside scoop on the marketing and advertising trends and reporting that guide the world's top brands.

 
 
 
 
 
 
Barbie's Diverse, All-Female 2020 Campaign Team Champions Girls' Leadership
 

The four-doll set was created in partnership with She Should Run to inspire girls to effect change

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adweek Promos and Events
Brandweek Masters Live: Marc Pritchard, Andrea Brimmer and more
 

P&G Chief Brand Officer, Marc Pritchard, Ally Chief Marketing Officer Andrea Brimmer and more join the Brandweek Masters Live lineup to share insights and discuss the future of marketing. Register now and attend the fully reimagined virtual experience on Sept. 14-17. 

 
 
 
 
 
 
 
 
How Marketers Can Adjust to New Consumer Behaviors
 

Targeting the right audiences, spending wiser and shifting your messaging are key

 
 
 
 
 
Promoted Content by MessageGears
Your Cross-Channel Messaging Doesn't Deserve a Bad Email Platform
 
Your Cross-Channel Messaging Doesn't Deserve a Bad Email Platform
 
 
 
 
 
 
Planters Mascot Hits Next Life Milestone and Celebrates His 21st Birthday
 

Baby Nut is a baby no more

 
 
 
 
 
Travel Ad Spend Has (Slightly) Recovered Since the Pandemic Began
 

Experts predict 2019 levels won't be reached until a vaccine is found

 
 
 
 
 
Adobe Debuts New Marketing App Geared to Executives
 

The launch marks creative software firm's first analytics app

 
 
 
 
 
Anheuser-Busch Celebrates Portfolio With First Virtual Beer Festival
 

International Beer Day livestream included celebrity performances, Clydesdales and a Drizly partnership

 
 
 
 
 
 
Featured Jobs
AbelsonTaylor
Chicago, Illinois
 
Out of Home Advertising Association of America
New York, New York
 
Coastal Television Holdings Company LLC
Casper, Wyoming
 
Coastal Television Holdings Company LLC
Casper, Wyoming
 
Tranont
Lehi, Utah
 
 
 
 
 
 
 
 
fb tw in insta
 
 
 
You’re subscribed to Adweek’s AdFreak as newsletter@newslettercollector.com


© 2020 Adweek, LLC • 261 Madison Avenue • 8th Floor • New York, NY 10016
UnsubscribeUpdate PreferencesSubscribe
Terms of ServicePrivacy PolicyForward to a Friend
 
AdChoicesLearn more about AdChoices for LiveIntent
 
 
Link