Contemplating Cannabinoids? New U.S. Market Report Examines Growth Opportunities
By William Sumner, Hemp Content Manager, New Frontier Data
Cannabinoids represent one of the U.S. hemp industry’s fastest-growing markets. Despite regulatory uncertainty on behalf of the Food and Drug Administration (FDA), consumers remain keenly interested in the litany of potential health benefits from cannabinoids, particularly cannabidiol (CBD).
Seeking to provide insight to a potential billion-dollar market, New Frontier Data has the U.S. Hemp Market Report: Cannabinoids Edition. Co-sponsored by Groff North America and Farmacy Health, the report examines the state of the U.S. cannabinoid market, and serves as companion to the Hemp Business Journal’s ongoing Cannabinoid Webinar Series. Among its highlights:
Consumers are talking about CBD
The report cites how 73% of consumers have had a conversation about CBD. Two-thirds (67%) of nonconsumers have discussed the substance, and 51% of those surveyed said they know someone who uses CBD. Unsurprisingly, 96% of CBD consumers have had at least conversation about CBD, and 56% recommended CBD products to someone they know.
Discussions about CBD is one thing, but what kind of effect have these conversations had on consumer attitudes? According to the data, it has been significant.
A reported 54% of consumers take recommendations from friends and family regarding which type of CBD product to buy. Another 39% of respondents say they have gotten CBD from a friend or family member, with 27% saying that a friend or family member is their sole source of CBD.
The CBD market still has room for growth
When the 2018 Farm Bill was passed, expectations were high about the future of CBD. However, as the FDA continued to delay in providing regulatory guidance, and as oversupply in the market started to depress prices, many began to fear that the boom period for CBD was over. However, new data suggests that considerable room persists for growth in the CBD market.
Among both CBD consumers and nonconsumers, 29% of those surveyed planned to purchase CBD over the following six months, while 47% said they were unlikely to do so (the remaining 24% described themselves as being undecided). Unsurprisingly, CBD consumers were the likeliest to continue purchasing the substance (72%), while nonconsumers were likeliest (54%) not to purchase CBD over the following six months.
There remains considerable opportunity for brands looking to expand their reach: As the bulk of CBD users have tried products based on recommendations from family and friends, brands which place an emphasis on educating both consumers and nonconsumers hold a unique position to strengthen their market shares.
To better inform brands about opportunities and risks in the U.S. cannabinoid market, New Frontier Data and the Hemp Business Journal, in partnership with Groff North America and Farmacy Health, is producing a free cannabinoid-focused webinar series. Click here to register, and receive a complimentary copy of the U.S. Hemp Market Report: Cannabinoids Edition.