The Promising Future of The CBD Market
Posted by Shannon Ball on May 5th 2021
The CBD industry is quickly expanding into a multi-billion dollar market.
There is a massive opportunity to be at the forefront of this growing market as more people than ever before are becoming interested in the many positive effects of CBD products. From data about the projected growth of the CBD market to which CBD products are most intriguing to new users, we outline everything you want to know about the CBD market.
Market Size
Market size refers to the number of potential customers that you could sell your product to and ultimately how much money they will spend on products.
- The global cannabidiol market was valued at $2.8 billion in 2020 (Grandview Research, 2021)
- The hemp segment dominated the market in 2020 and accounted for the largest revenue share of $59.6% (Grandview Research, 2021)
Market Growth Projections
Since the CBD market is new, a marketing forecast projects future numbers and trends in the market for the upcoming years.
- Sales are projected to grow from approximately $2.8 billion in 2020 to $10.3 billion by 2024 (Hemp Industry Daily, 2019)
- Projections expect a five-year compound annual growth rate of 54% (Hemp Industry Daily, 2019)
- Market size value in 2021 is expected to reach $3.5 billion in 2021 (Grandview Research, 2021)
Market Usage
Since there are many CBD products available, it's crucial for retailers to identify the best performing to maximize their revenue.
- 44% of regular CBD users spend $20-$80 per month on CBD products.
- 13% spend more than $160 per month (Brightfield Group, 2019)
- Of the Americans using CBD, the most common uses are for pain relief (64%), anxiety (49%), and insomnia (42%) (SingleCare, 2020)
- An estimated 64 million Americans have tried CBD in the last 24 months (Consumer Reports, 2019)
- 33% of American adults have used CBD once or more (SingleCare, 2020)
Popular Products
While there are many products to choose from, some CBD products are inevitably more intriguing to our target market than others!
- Nearly 50% of CBD users prefer oils/tinctures, lotions/balms, and gummies (SingleCare, 2020)
- According to SingleCare, of people who have not tried CBD:
- 29% of people are interested in CBD lotions and balms
- 28% of people are interested in CBD gummies
- 26% of people are interested in CBD oils/tinctures/drops (oral)
- 18% are interested in capsules/tablets
- 18% are interested in topical sprays
- 17% are interested in CBD-infused food, such as chocolate
Product Growth Projections
Many CBD products are expected to grow dramatically over the next several years. According to Hemp Industry Daily, 2020, by 2025 growth projections are:
- 159% for over-the-counter supplements to $1.5 billion
- 428% for beverages to $1.2 billion
- 197% for inhalables to $792 million
- 428% for food items to $595 million
- 428% for candy and gum to $373 million
Legality
While there is misunderstanding and confusion about the legality of hemp products, CBD is legal in the United States.
- Hemp-derived CBD products are legal in all 50 states, as long as they contain no more than 0.3% THC (Food and Drug Administration, 2020)
