Pearl attended The CBD Insights conference Feb 27th hosted by Food & Consumer Products of Canada, and here are our key takeaways. We hope you will find some valuable insights to help grow your business.
1. The Market will explode
- The global CBD market is expected to grow from $1.5 billion dollars to $17.3 billion dollars by 2026
- In Canada the CBD market is estimated at $50 million dollars but projected to be $1.9 billion dollars by 2022
- Currently only 1 in 7 people say they consume CBD with projections estimated to 1 in 3 people
Implication: The CBD is a rapidly growing market, especially versus traditional CPG products. Consider launching your brand or developing a new brand to tap into this opportunity.
2. CBD is associated with health
- Health is the primary reason why consumers try CBD including:
- Chronic Pain – 57%
- Sleep Aid – 55%
- Relaxation – 51%
- Depression/Anxiety – 51%
- Inflammation – 51%
Implication: When entering the CBD market, focus on a portfolio of CBD solutions that can address consumers top health concerns.
3. The Cannabis Consumer is Younger
- The younger generation is more likely to consume cannabis, yet the incidence among the older co-hort is expected to grow in the future as they turn to CBD for health solutions.
- Cannabis incidence by age:
- < 35 – 49%
- 35-44 – 36%
- 45-54 – 27%
- 55-65 – 24%
- 65+ – 17%
Implication: Understand cannabis usage and attitudes by age co-hort. The older generation in particular will be looking for solutions that address health concerns.
4. Adoption Influences
- Consumers have clear feedback on the influences of adoption including:
- Doctor recommendation – 48%
- Free samples – 46%
- Covered by an insurance plan – 43%
- If I don’t have to smoke it – 37%
- If I can eat or drink it – 36%
Implication: Understand the customer journey to inform your marketing plan. Develop new innovation formats that can address barriers to entry (non smoking options).
4. Innovation will drive future growth
- CBD has greater potential than THC, many predict CBD sales volume will outpace THC in 2020.
- Evolving consumer perceptions will fuel future growth especially with the older co-hort.
- New formats that are more convenient and address negative taste perceptions will increase consumer interest and adoption
- Hemp will benefit from the increase in awareness and education on cannabis
Implication: Keep pace with evolving consumer perceptions and align your marketing and innovation priorities.
Sources:
CBD Insights conference, FCPC, Feb 27
