Just who is the CBD product customer?
New Acosta study gives snapshot of potential $20 billion
market. As retailers decide whether
cannabidiol (CBD) products are an emerging trend or just hype, new research
from Acosta finds that more than a quarter of U.S. consumers are now using
them.
Just who is the CBD product customer? Twenty-eight percent of consumers polled use
CBD products on an as-needed (19%) or daily (9%) basis, Acosta said in its
report “The CBD Effect: A Rapidly Emerging Consumer Trend,” released Tuesday.
The study projects CBD product sales to consumers to hit $20 billion by 2024.
CBD in recent years has become a popular remedy for a range of everyday health
issues. A naturally occurring and non-intoxicating compound in hemp plants, CBD
is permitted within federal and state regulations. “Health ailments without a
‘one-size-fits-all treatment’ are quite common, and avoiding chemicals when it
comes to health and self-care is important across all age groups.
CBD sales and projections show consumers are turning to CBD
for help, and demand is growing rapidly,” according to Colin Stewart, senior
vice president of business intelligence at Acosta, a Jacksonville, Fla.-based
consumer packaged goods (CPG) sales and marketing rm. The top uses of CBD
products are for joint discomfort, general wellness, muscle discomfort, anxious
feelings, sleep issues and headaches, Acosta’s study said. Interestingly, 59%
of respondents’ first-time CBD product purchases were planned, compared with
25% being an impulse buy and 7% doctor-recommended.
Consumers generally have a positive view of CBD products,
despite some uncertainty, Acosta found. Fifty-five percent agreed with the
statement “CBD oil is/might be a new miracle treatment versus 35% being unsure
what to think about CBD oil and 11% deeming the products as “just hype.” By a
large margin, CBD product users are Millennials (56%), men (48%) and college educated
(49% have a bachelor’s degree). Twenty-eight percent of users are women, 32%
are from Generation X and 15% are Baby Boomers. Millennials most often use CBD
products to ease anxious feelings (31%) and for general wellness (30%), Acosta
reported. Among Gen Xers and Boomers, these products are most commonly used to
alleviate joint discomfort (31% and 36%, respectively) and muscle discomfort
(both 23%).
Consumers who haven’t tried CBD items cite pricing, insufficient
research and distrust in product claims as the top barriers to usage, the study
said. Of those open to trying CBD offerings, 26% said these products are too
expensive, 18% said there aren’t enough studies, 14% don’t trust claims, 13%
think there’s not enough regulation and 13% said CBD items are difficult to understand.
Meanwhile, consumers who said they aren’t open to trying CBD products named
lack of studies (29%), distrust of product claims (29%), moral issues (18%),
price (7%) and insufficient regulation (7%) as the chief reasons. Many
retailers remain uncertain about the regulatory framework regarding the sale
and labeling of hemp-containing products, even as various CBD offerings
continue to make their way into stores.
Scientific research on CBD’s potential health benefits also
is still in its early stages. Late last year, the federal government changed
its classification of cannabis with the enactment of the Farm Bill. The
legislation removed hemp from the Federal Controlled Substances Act’s definition
of marijuana. That meant hemp was no longer a controlled substance under
federal law, even though marijuana remains a Schedule I drug. Under current
federal law, CBD and THC can’t be added to a food or marketed as a dietary
supplement. The Food and Drug Administration maintains regulatory oversight of food,
cosmetics, drugs and other products within its jurisdiction that have CBD, THC
or the cannabis plant as an additive. The CBD product market’s potential,
however, has drawn the interest of retailers large and small, including the
nation’s largest supermarket operator, The Kroger Co., as well as small chains
like Dierbergs Markets and online grocers such as Thrive Market. In June,
Kroger confirmed plans to roll out CBD topical products to 945 stores in 17
states. That has since risen to more than 1,300 stores in 22 states, including
the Kroger, Fry’s, Fred Meyer, King Soopers, Mariano’s, Pick ‘n Save, QFC and
Smith’s banners.
“Consumer CBD sales are expected to reach $20 billion by
2024, larger than the current annual sales of candy, gum and mints combined,”
he noted. That includes pet care. One in 10 pet owners have bought CBD products
for their pets, with 52% making the purchase based on a veterinarian’s
recommendation, the Acosta report found. The top pet CBD products purchased
were treats/chews (48%), oil (27%), capsules (14%) and topical ointment (9%),
primarily for discomfort (29%), anxious feelings (32%) and general wellness
(29%). Acosta said its research was based on a July 2019 shopper survey and
internal subject matter experts and included projections from BDS Analytics, a
cannabis market tracking firm. Original article by Supermarket News