The Development Trend of CBD Market in 2020 (Part 3)

Cannabis Legalization丨Asian Times

6. CBD becomes a “subversive” role in the beauty industry

Prohibition Partners, a strategic consulting firm for the cannabis market, noted in its report The Impact Series: Beauty that by 2024, CBD skincare market sales expected to reach $ 959 million. The report explained that due to the surge in consumer demand for innovative natural cosmetics, cannabinoids with antioxidant and anti-inflammatory effects are disrupting the traditional beauty market and supply chain.

For now, many niche independent skincare brands are driving the development of the CBD beauty market because large multinational companies are still vigilant about the complicated legal status of the CBD. At the same time, some brands are using CBD oil, a hemp derivative, to sell beauty products containing low-level CBD hemp seed oil. Of course, continuous consumer education is essential to ensure the long-term development of the CBD beauty market.

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Preliminary research indicates that CBD can be helpful in sleep management, anxiety, pain management, and inflammation.

Cannabis and CBD are quickly being incorporated into a wide range of mainstream consumer products and used in everything from pet food to skincare. So far, CBD products in the beauty industry have been uneven. On the one hand, commercial street retailers, global brands, and independent entrepreneurs are thinking about re-arranging and innovating. On the other side, consumers are looking for new and innovative products from natural and sustainable sources, and cannabinoid CBD conforms to this development model, which in turn drives the growth of related product demand.

People have always questioned the duration of this trend. Because of its natural anti-inflammatory and antioxidant effects, cannabis is becoming one of the most “disruptive” forces in the beauty and personal care industry over the past 20 years.

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7. CBD Gummies market expected to grow by 28%

It estimated that low-concentration CBD Gummies are the most substantial part of the product type, accounting for nearly 90% of the market share. The demand for high-concentration CBD Gummies mainly comes from the medical industry.

A report published by Fact.MR shows that from 2019 to 2029, the compound annual growth rate of the global CBD fudge market expected to reach 28%. Consumers’ growing interest in edible cannabis is a significant factor in supporting market growth.

As for the fast-growing European CBD Gummies market, due to the recent legalization of entertainment and medical marijuana, the UK is expected to become the fastest-growing market. The legalization of cannabis has also made North America the largest CBD Gummies market. Due to its application in diseases such as schizophrenia, glaucoma, and sleep disorders, the growth rate of high-concentration CBD Gummies products expected to be higher during the forecast period. The low concentration of CBD Gummies expected to remain mainstream in the market.

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It expected that in the next few years, more states in the United States would legalize CBD medical or entertainment consumption. The report said that this trend of legalization might promote domestic demand for CBD in the United States. The need for cannabis substitutes is increasing. Consumer interest in cannabis-based edible foods and other concentrated CBD products is expanding, which supports the growth of the market. Besides, driven by millennials, CBD Gummies gradually replaced other consumable products, including candy, chocolate, and cookies.

8. CBD capsules and beverages have become mainstream

Although the FDA does not allow CBD to sold as a dietary supplement, sales of CBD capsules in 2019 still increased by 526% to reach $ 477 million (source: Brightfield Group).

Leading companies in the field of CBD products and dietary supplement companies that have long been in the area of CBD capsules have jointly promoted the development of this industry. CBD capsules are easy to use, and the dosage carefully controlled. Many manufacturers combine CBD with other plant ingredients to meet specific needs, such as relaxation, sleep, and menstrual pain.

For example, the Garden of Life combines CBD with theanine from organic green tea extract and organic saffron to launch CBD relaxation soft capsule. Irwin Naturals combines CBD with melatonin, theanine, calcium, and magnesium to create a CBD + sleep soft liquid gel. Medterra combines CBD with valerian and tree bark to create products that relieve menstrual pain.

CBD beverage sales have continued to soar with the speed of innovation. CBD beverage sales increased by 1276% last year to 143 million US dollars (source: Brightfield Group). From soda to tea to lemonade and sports drinks, innovations are meeting the growing consumer demand for natural and convenient products. The sales of CBD beverages benefit from the increase in demand for functional beverages, because CBD-added glasses can provide the benefits of relaxation, enhanced energy and sleep, and recovery from exercise.

9. Pain relief is the main reason for using CBD’s 2020 trend and preference survey of 9782 dietary supplement users found that 14.5% of the respondents (a total of 1273) purchased the CBD in 2019. The survey asked why these participants used CBD and whether they believed that CBD could achieve its intended purpose.

Although related companies claim that CBD supplements have many health benefits, the trends of CBD mostly follow broader themes related to consumer health and the overall needs of the supplement industry. Compared with other reasons for use, pain relief ranked first, and 67.3% of the respondents indicated this benefit. The use of pain reduction is most pronounced among the elderly.

  • Another 45.4% of the respondents indicated that they use CBD for sleep relief;
  • 37.5% of the respondents reported that they use CBD to reduce anxiety, and the extent of lowering stress is widespread among young users;
  • 20.3% of users said that using CBD can reduce depression / improve mood;
  • 9% of the respondents indicated that CBD given to pets;
  • 8.6% of respondents applied for cancer treatment;
  • 2% of the respondents reported that CBD is used to treat colds or flu;
  • 0.8% of the respondents used CBD to alleviate the symptoms of Parkinson’s disease.

Among the CBD users surveyed, only about half (53.3%) thought CBD was useful to them; 11.7% of users said it was ineffective; 35% of users said they were not sure. Among those who give CBD to pets, 63.5% believe that it is effective. Those who use it for these purposes are more likely to think it is effective than those who take it for other purposes.

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Alina Xue
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