The exact future of the US CBD market may be unclear, but there’s no denying consumers are interested in the cannabinoid from both a wellness and cannabis perspective.
But brands have gone beyond cannabinoids. Functional ingredients began popping up on CBD labels mainly to account for health claims. For example, a brand cannot say CBD helps with sleep; it can say melatonin plus CBD helps with sleep.
The connection between cannabis, wellness, and CBD becomes increasingly important as mergers and acquisitions heat up. Non-CBD companies partnering with and acquiring CBD brands will influence how competition looks in the space, as well as how final products are positioned and expanding the realm of consumers they reach. An influx of wellness-focused CPG dollars will expand horizons for CBD. Once legislative issues are worked out, distribution channel relationships already forged by wellness and cannabis brands will increasingly shape how, when, and why people buy CBD.
The CBD market still exists in a regulatory gray area nearly 2.5 years after the Farm Bill legalizing low-THC hemp went into effect. The delay has been particularly impactful for ingestible CBD products like edibles and tinctures. The FDA has yet to provide the framework needed to govern how CBD ingestibles can be sold legally.
Existential question of CBD: Wellness? Cannabis? Its own industry?
The lack of regulation has largely kept mainstream consumer packaged goods companies from entering the market. Federal guidance is needed for these players to get involved without posing important risks to the rest of their business. The legal gray area is also one of the reasons why CBD is so separate from similar products like mood modification beverages or immunity supplements. Yet, Brightfield Group’s Opportunities to Win report showcased how similar CBD products already look like mainstream, non-CBD products.
Innovating into wellness: Cannabinoids and beyond
Retaining and gaining the loyalty of these groups will take innovative, unique offerings that deliver on product expectations. Word of mouth is the most popular outlet for initial CBD awareness among both generations. Millennials are more likely to learn about CBD from social media, in-store browsing, or from a budtender. Gen Xers learn about CBD from more traditional sources like doctors, the news/TV, or print ads.
Millennials & Gen X driving the market
The good news is that regulatory turbulence will not last forever. The FDA will eventually provide guidance on CBD ingestibles, allowing companies of any size to confidently create CBD products of all stripes.
Millennials and Gen Xers account for more than two-thirds (71%) of CBD users. Knowing who these consumers are is imperative to accurately marketing to them. A plurality of both generations uses CBD daily, but millennials take more doses per day. Both generations are also more informed about the CBD dose they take, especially when compared to baby boomers. Knowledge and preference will only increase as millennials and Gen Xers become more experienced users.
The robust vendor analysis is designed to help clients improve their market position, and in line with this, this report provides a detailed analysis of several leading CBD market vendors that include Aurora Cannabis Inc., Cannoid LLC, Canopy Growth Corp., CBD American Shaman LLC, CV Sciences Inc., Elixinol, Endoca BV, Gaia Botanicals LLC, Isodiol International Inc., and NuLeaf Naturals LLC. Also, the CBD market analysis report includes information on upcoming trends and challenges that will influence market growth. This is to help companies strategize and leverage all forthcoming growth opportunities.
The report on CBD market covers the following areas:
The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains a comprehensive market and vendor landscape in addition to an analysis of the key vendors.
The publisher has been monitoring the CBD market and it is poised to grow by $29.91 billion during 2021-2025, progressing at a CAGR of 26.93% during the forecast period. The report on the CBD market provides a holistic analysis, market size and forecast, trends, growth drivers, and challenges, as well as vendor analysis covering around 25 vendors.
The report offers an up-to-date analysis regarding the current global market scenario, latest trends and drivers, and the overall market environment. The market is driven by the rising popularity of CBD oil and rising number of countries decriminalizing and legalizing CBD products.
By Geographical Landscape
The CBD market is segmented as below:
Dublin, Dec. 30, 2021 (GLOBE NEWSWIRE) — The “Global CBD Market 2021-2025” report has been added to ResearchAndMarkets.com’s offering.