The Industry is Exploding
CBD has become a national phenomenon, especially during the pandemic. It’s alleged calming and pain-relieving side effects have consumers cleaning off shelves and stocking up online. Another survey conducted by SingleCare in 2020 found that 33 percent of American adults have used CBD once or more, and of all age groups, Americans aged 18-29 are most likely to use CBD consistently, with its popularity decreasing with age.
“The CBD market is exploding, and it’s not just one particular demographic or age group adopting it or regularly spending money on CBD products. The variety of issues that CBD can be used for, along with the wide range of products available, make it a popular choice across the board,” said Adrian Tennant, VP of Insights at Bigeye and the leader of the research team, in a press release. “While we’re finding that most users are learning about CBD from a common source — friends and family — their reasons for purchasing it differ depending on age, educational level, and income. The findings from this report will be vital for businesses to understand consumer behavior in this new marketplace.”
Consumer Purchasing Habits
The research for the Bigeye report was gathered from 798 CBD users across the U.S. and Puerto Rico, finding that:
- The most dominant indications for CBD use are for anxiety (38 percent), stress (36 percent), sleep (36 percent), and relaxation (34 percent).
- Over two-thirds (67 percent) of CBD users spend up to $99 monthly on products containing CBD, while over a quarter (26 percent) spend between $100 and $199 monthly.
- The number of people reporting CBD use is up three percent since March 2020, likely due to COVID-19.
The report found that users purchasing CBD products for pain relief, to aid sleep and relaxation, or for other conditions are most likely to be spending $0-$49 per month, while those using CBD for mental health, to treat medical conditions, and for beauty and skin conditions are most likely to be spending $50-$99 per month. Fourteen percent of those using CBD to treat medical conditions are spending $200-$249 per month.
CBD products purchased from physical stores are primarily bought from cannabis/medical marijuana dispensaries (43 percent), or health, vitamin, or supplement stores (26 percent), according to the report. One-fifth of users report purchasing from drug stores and another one-fifth from vape or smoke shops.
For those using CBD for pain relief, medical conditions, beauty and skin conditions, and other conditions, purchasing once a month is the most common frequency, but those using CBD for mental health are very slightly more likely to purchase more frequently, such as once every couple of weeks. More than one-fifth of those using CBD products to aid sleep and relaxation are purchasing significantly less frequently than most – at three times a year or less. Sixteen percent of those using CBD for pain relief also purchase three times a year or less, according to the report.
Positive Growth in 2021
Other reports note CBD sales in the U.S. skyrocketed to $5 billion in 2019 — a 706 percent increase over 2018 — and are projected to reach a whopping $24 billion by 2023, according to a report by Brightfield Group. Consumers’ receptivity to CBD has been growing rapidly since the 2018 Farm Bill legalized industrial hemp production. If consumers are seeing positive results and liking the effects CBD has on them, they will likely continue to use and purchase CBD in the future. COVID-19 also is not going anywhere anytime soon, and shoppers seem to be coping with CBD products.