October 9th, 2020
Stephen Murphy
CBD: The Consumer Report demonstrates the underlying strength of the market and its potential to expand over the coming years, as highlighted by a 16% growth forecast by 2024, which takes into account the impact of COVID-19. In total the over-the-counter CBD market is expected to be worth US$5.8 billion in 2020 and US$6.79 billion by 2024.
CBD Use Increases During COVID-19
One of the major areas of study from CBD: The Consumer Report, was the impact of COVID-19 on the purchase and use behaviour of CBD consumers.
As highlighted below, a significant proportion of CBD and cannabis-infused goods users reported an increase in use as a result of COVID-19, mainly related to a number of health issues. Specifically, almost 30% of users in mature markets, such as the US and Canada, stated that they expected to increase their usage of CBD during the global pandemic, primarily to deal with stress, anxiety and as part of a wellness routine.
Interest shown in two of our features, focused on COVID-19 and cannabis, has been high over the past six months.
COVID-19: The turning point for global cannabis legalisation
Clarification: Is Cannabis a Cure for COVID-19?
A number of clinical studies examining cannabinoids as a potential treatment for the symptoms of COVID-19 are currently underway.
If any conclusive findings are made and CBD is proven to alleviate the symptoms of coronavirus, a major boom can be expected in the industry.
New users powering continuous growth
The largest proportion of consumers are recent entrants with 28% of CBD users having been in the market for less than 6 months. Such significant adoption is likely down to the growing exposure to products as well as word of mouth recommendations focused on health-related issues.
Major public health issues such as sleep deprivation, depression and anxiety have been rising for several years, and so the rising popularity of CBD may be due to users seeking alternatives to traditional prescription based medicines, which are reported to have a range of side-effects. The CBD: Consumer Report highlights that 52%, the majority of consumers, are using CBD to help with sleep and relaxation while 51% of consumers are using CBD to manage health & wellness and to treat various health conditions.
A steadily maturing market
Stephen Murphy, Co-founder and Managing Director of Prohibition Partners, spoke about the proliferation of the CBD market and its potential upon the release of CBD: The Consumer Report.
“The CBD market has risen from obscurity to a multibillion-dollar industry in the space of three years, disrupting wellness, drinks, food and pharma in the process. The rise of the market has been astronomical but it has been a turbulent path to prominence. Regulatory barriers have been broken down only for an entirely new framework to emerge. Brands are grappling for market share but face regulatory uncertainty that may disrupt the entire supply chain.
“Most importantly, consumers are rapidly changing. Starting out as innovators, testing and sampling a wide range of products, they are now becoming educated and informed on product quality, pricing and preferred formats, which will likely spell the end for the brands profiteering off of the ‘Wild West’ attitude of the market. As the market develops, brands, businesses and investors need to stay up to date on consumer behaviours, uses and attitudes, as well as the rapidly shifting regulatory and competitive landscape that will shape the sector over the next five years. That’s why we’ve produced this report.”
