PLANO, Texas--(BUSINESS WIRE)--Direct selling companies will sell $300 million worth of cannabidiol-related products in 2018, making direct selling the largest channel of distribution for the rapidly growing CBD product sector.
“Interest in cannabidiol, or CBD, is rapidly transforming the consumer product landscape,” says Todd Eliason, publisher and editor in chief of Direct Selling News (DSN), which conducted the research. “The trends also indicate that global direct selling sales of CBD products could exceed $1 billion by 2020. Established companies as well as a growing number of startups have begun announcing their entry into the market.”
CBD is one of the hundreds of cannabinoids found in the Cannabis sativa plant. The ingredient is being credited with a growing list of health benefits and, as a result, companies from virtually every consumable category, including beverages, dietary supplements, skin care and pet products, are actively exploring business in the market.
In its most recent study, Direct Selling News has identified at least 25 direct selling companies that already have entered the CBD space. These companies, sometimes referred to as network marketing companies, all opt to use a network of independent salespeople to sell their products, often on a person-to-person basis, rather than a more traditional retail channel of distribution. They include, but are not limited to: Kannaway, the direct selling arm of California-based Medical Marijuana Inc. (OTC: MJNA); and California-based Youngevity International (NASDAQ: YGYI), which is currently ranked at No. 89 on the DSN Global 100 list of the world’s largest direct selling companies.
“With an ingredient that is as easily misunderstood as CBD, the direct selling channel may prove to be the perfect fit for companies seeking channels of distribution,” says Eliason. “Direct sellers and network marketers are known for their one-on-one training and education methods that can meet the consumer on a personal level even if it’s the first time they’ve heard of CBD oil. That personal connection and ability to address specific misconceptions has the potential to create a loyal customer base.”
Direct Selling News will be exploring the many factors related to direct selling companies’ leading role in the CBD market in an upcoming edition of the magazine as well as at a Nov. 6 CBD Symposium it is co-hosting with parent company SUCCESS Partners at its Plano, Texas headquarters.
About Direct Selling News
Direct Selling News (DSN) is the oldest and most respected trade publication devoted exclusively to serving executives of companies that distribute their products and services through the direct selling channel. Its annual research projects include the Global 100 list of the world’s largest direct selling companies and the Best Places to Work in Direct Selling.