The CBD market has grown exponentially, rising from the unknown to become a top health and retail story. According to recent data, two-thirds of Americans are now familiar with CBD (cannabidiol), and the CBD market is on track to reach $1.8 billion in consumer sales by 2022. Likewise, Google search volume shows the scaling interest in CBD topics. But who is buying CBD and why? The stats below tell todayâ€™s CBD story and help express tomorrowâ€™s CBD potential.
The Agricultural Improvement Act of 2018, often called the 2018 Farm Bill, removed industrialized hemp from the list of controlled substances. While this action didnâ€™t precisely legalize CBD, it loosened the regulations enough to create the CBD market.
Almost half of all CBD buyers purchase CBD products at drug stores. General online retailers and health food/supplement stores are also top CBD purchase locations.
Businesses and venture capitalists are seeing green when it comes to CBD. Veritas Farms, a publicly traded company that specializes in CBD oils, achieved more than $1.5 million in revenue during the first quarter of 2019, up almost 400% from the year prior. Much of that growth is tied to CBD adoption from the retail giants. Veritas products are now in 950 stores with plans to grow to 1,350 this year, including CVS, Rite Aid and Kroger outlets.
While consumption is the top use of CBD products now, continued CBD growth will come from CBD infusions in major consumer products, like cosmetics. Estee Lauder, for example, is producing CBD-infused lotions sold at Sephora. And, according to Brady Cobb, CEO of SOL Global Investments, a cannabis-focused investment firm, â€śGlobal food, beverage and tobacco companies are just treading water waiting for the FDA to allow them to add CBD. When that happens, theyâ€™re going to plunge in head first.â€ť In fact, Coca-Cola, Molson Coors Brewing, American Premium Water and Jones Soda are said to have CBD-related plans on the books waiting for FDA approval.
CBD is still in its infancy, with consumer familiarity, trial intentions and uses predicted to expand quickly and dramatically. With maturity, consumer perception and expectations related to CBD will also evolve.
For many CBD brands, customer acquisition through CPA-based campaigns can be an effective way to test new markets and offers. Top brands adding CBD products to their lines may have more success with newsletter content that shares personal CBD success stories.
No matter the strategy, brands entering the CBD market will need to stay informed about the consumer segments ready to try CBD-infused products, the stories that lead to their conversions and the results that drive their retention, all while avoiding misrepresentation or misleading claims related to CBD performance.
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