The US CBD market has become even more saturated with a continuous flood of new or established companies creating CBD products to join the thousands already present in the market. Because the market has seen both sizable expansion and consolidation in 2019, the top 20 brands have technically lost share but still maintain the majority piece of a now much larger pie. As of April 20, 2020 the top 20 CBD companies make up 32% of the total US Hemp-Derived CBD market.
Types of Top CBD Companies
The industry is now being strongly influenced by several primary groups of competitors. Here are a few:
Powerful CBD-only companies, which have been able to further develop reputations and establish brand loyalty, refine and improve marketing strategies, and grow larger and more diverse customer bases despite barriers faced under past and current regulatory systems. Examples: CW Hemp, CV Sciences
Cannabis companies, typically multi-state operators (MSOs), leveraging vast dispensary and retail distribution networks, supply chain infrastructure, brand recognition and capital to create or expand successful CBD lines. Examples: Select CBD, Curaleaf
Supplement brands with natural food store and mass retail chain connections, nutraceutical marketing experience, capital to invest, and established customer bases that are particularly prone to purchasing CBD-infused wellness products. Examples: Irwin Naturals, Barlean’s, NaturesPlus
Disruptors: Those CBD brands little-known prior to this year, even in CBD circles, who have made tremendous headway over the course of months, many being picked up by large retail chains and thrust into the spotlight. Examples: MedTerra, Sagely Naturals, cbdMD
Pharmaceutical companies: GW Pharmaceuticals brought Epidiolex onto the U.S. market at the end of 2018 and its revenues have grown dramatically since that time. Though considered separately from top CBD supplement companies for the purposes of this study, GW Pharmaceuticals (Epidiolex) carries considerable weight in the US CBD industry of 2019 and additional pharmaceutical companies and products are expected to join the market and play an even more important role in the future.
Though only just beginning to dip their toes into the US market, a number of Canadian Licensed Producers (LPs) with tremendous cannabis infrastructure and connections, legitimacy and investor dollars attained via public exchanges in Canada, have expressed intentions to aggressively pursue the US CBD market, namely via buy-outs and M&As. Examples: Tilray (Manitoba Harvest), Aurora Cannabis (Aurora Hemp), Canopy Growth Growth Corporation (First & Free)
Consumer packaged goods (CPG) behemoths such as Coca Cola, Anheuser Busch InBev, and Unilever have been circling the industry since prior to the legalization of industrial hemp cultivation, and are eager to establish a name for themselves early. These companies are ready to join the competition as soon as a pathway has been cleared by the FDA, especially when it comes to food additives and dietary supplements.
Biggest CBD Companies by Market Share
The top 5 CBD companies have continued to make names for themselves as the US CBD market grew over 500% in 2019 (Brand shares as of April 20, 2020):
CW Hemp (Charlotte's Web)
Charlotte's Web has effectively risen to the top of the ranks by leveraging robust marketing strategies and integrating them with a values base tied to their core consumers. By deeply understanding who they are as a brand and identifying the consumers that resonate with their messaging, they have built the foundation for potentially life-long customers and advocates.
CV Sciences (Plus CBD Oil)
Success has primarily come from classic product formats (capsules, softgels) and adherence to quality, low-dose products - making PlusCBD Oil a safe bet for more conservative users. Additionally, their strong presence in natural food stores is unprecedented among CBD manufacturers and has helped them merge into the mainstream market - average consumers can easily find PlusCBD Oil products on shelves rather than having to go online and search them out.
Green Roads World
Green Roads has leveraged product diversity and quality to differentiate themselves in the market. By offering more unique, high-dose products, they can be seen as an innovator and those products better resonate with a variety of consumers. Similarly to Charlotte's Web, they have leveraged value-based marketing to fuel robust social strategies targeting their core consumers.
Medterra is a completely CBD-focused, THC-free brand with broad mainstream consumer appeal. It's considered a "disruptor" due to its rapid growth from 2018 and appearance on mass retail shelves alongside products from more established players. Their focus on ensuring quality and consistency from seed to sale has led to rapid consumer interest.
Balanced Health Botanicals (CBDistillery)
Their extensive product menu and low price points make BHB's portfolio appealing to frequent and budget users, such as those with chronic conditions. Additionally, their efforts to gain a strong presence online and in independent pharmacies played a part in their success as well as the ability to address smaller, overlooked markets with tailored community advertising.