What are the trends in the CBD market by the end of 2021 and where will it go in 2022?
Consumers consistently show interest in CBD from both a wellness (medical) and cannabis (recreational) perspective. Although its discovery is still very limited due to the government-backed regulatory structure, innovations in the category and its medical and therapeutic potential make the commercial outlook for this cannabinoid quite promising for the future.
Based on Sensitive CBD consumption data and research results from the American group Brightfield, we present 7 of the main trends for the future global legal Cannabis market:
Leading purchasing generations: Millennials and Generation X account for more than two-thirds (71%) of CBD users. Knowing who these consumers are and how they consume is imperative to marketing products effectively. Both generations tend to consume CBD on a daily basis, although for different reasons they opt for different products and concentrations. Generation X users also tend to consume their cannabinoid doses more often per day and for more medicinal or therapeutic reasons.
Invest in information: Word of mouth is the most popular way to spread information and create initial awareness about CBD. Millennials are more likely to learn about CBD through social media, online browsing, in shops, or from a testimonial from a well-known customer, celebrity or influencer.
Generation X learns about CBD from more traditional sources such as medical studies, blogs, news/television or print ads. A good portion of people from both generations admit to not buying because they are unaware of the properties and benefits of CBD or even, to this day, out of sheer prejudice towards the Cannabis plant.
Invest in loyalty: CBD consumers tend to trust and be loyal to the brands they prefer, which is why companies that invest in building customer loyalty will be more commercially successful than those that are only concerned with finding new customers. Transparency, good communication and a plan of benefits and rewards for volume or frequency of purchases are always good business strategies to ensure customer loyalty.
Products with more trade potential:
Although European laws are very restrictive
restrictive with foodstuffs, this would be the product niche with the greatest future commercial potential according to research.
Gumdrops and sweets, due to their good taste, controlled taste, controlled dosage, discretion and practicality, are a super trend among Cannabis consumers. At the moment the only good news is that the regulatory denials will probably not last long and eventually in the near future there will be more guidance on edible Cannabis products.
Other Cannabinoids: Many of the world's leading brands have incorporated minor cannabinoids into their product portfolios, CBG and CBN cannabinoids have gained a lot of visibility since the second half of 2020. CBN and CBG find their place mainly as an extra help to CBD for relaxation and sleep.
Mix of ingredients: CBD ceases to be a product and becomes an ingredient, mixed or enhanced with others to present more complete formulas to customers. CBD with spirulina, collagen, hyaluronic acid, melatonin and other compounds are a big trend and are increasingly present on the shelves, even of large corporate brands in the health and wellness market.
Niches: having specific offers for certain consumer niches is an excellent strategy for the CBD market. Products for pets, for male and female health and beauty, for athletes, for sex life, etc. are some examples of potential segments within the CBD consumer profile.
The future of the CBD market may not be super clear, but there is no denying that consumers are interested in the cannabinoid from a wellness and cannabis perspective. Brands must continue to expand their product offerings to increase the growth potential within and beyond CBD products and channels.
The CBD industry is poised for stronger growth in 2022, with consumers returning to physical shops as the pandemic ends and disposable incomes increase. The CBD market is expected to experience a surge for brands that have survived the pandemic and with possible regulatory guidance expected in the near future, we believe we will see explosive growth in the industry.
Sensitive CBD believes that now is the time to invest in the industry, build strong brands and ensure success as competition increases.
