Should you start a CBD subscription service in 2021?

An Overview of industry trends & the 2020 COVID boom of door delivery services

The pandemic-triggered lockdowns of 2020 have had a transformational effect on small and medium-scale retail service models. California cannabis delivery services, for instance, make a good case in point. Throughout the initial round of lockdowns in the Golden State, everything from CBD oil to cannabis gummies and edibles were purchased using in-state couriers.

According to the California Cannabis Delivery Alliance, a trade association representing over 200 delivery services, members saw anywhere from 75-100% increases in sales volume.

As vaccines roll out and travel restrictions begin to ease, consumers are showing no signs of reverting from the use of delivery services. A research survey by Kinsey and Co. shows that over 15% of Americans — i.e. just under 50 million online shoppers — are now signed up for one or more subscription services to have products regularly delivered to their doors.

The subscription e-commerce space has been growing by more than 100% year over year for the past five years, and is slated to reach a market size of $473 billion by 2025.

Pandemic or not, consumers are very much attracted to the idea of curated products out of their niches of interest being delivered to them on a recurring basis. If industry trends are any indication, subscription services aren’t going away anytime soon, creating exciting opportunities for aspiring CBD entrepreneurs.