2020 Outlook on the CBD Industry
We have a lot of questions. Uncertainty about the future is no stranger to the industry of Cannabis and CBD products. Consumer buying habits are ever changing in the current state of the COVID-19 experience in America. We are stocking up, we’re interested in self-care treatments, we’re purchasing goods for ourselves, our families, and our pets, preparing for long periods of isolation or working full-time during a pandemic.
What’s the H(IGH)YPE about CBD?
Here’s the basics: Cannabidiol comes from the hemp or cannabis plant and contains no psychoactive effects associated with marijuana. CBD is popularly sold in the form of oil or infused into food and beverages to produce therapeutic effects. It is commonly used for at-home for treatment of pain relief, anxiety, and sleeplessness.
But wait – the industry must cross a remaining number of hurdles before we poise CBD products as a miracle drug!
Essential service or self-care indulgence?
It will likely take a while for CBD products to join the mainstream of consumer packaged goods. There is limited data available to the public and being researched by the FDA to determine the effects of CBD with long term use, the factuality behind claims regarding the treatment or prevention of various diseases, and many more questions.
For the brands already immersed in the industry, they are now seeing an overcrowding in their market of choice. As consumers, we
have a LOT of products to choose from. Pick your poison: CBD oil, CBD-infused gummies, CBD-infused sparkling water, CBD-infused cold brew coffee. The variety is astounding and the product is being introduced to consumers in food, beverage, lip balm, lotion, and patch forms, to name just a few.
In the current state of the pandemic that has sent so many of us into isolation and deep-stress mode; is this a blessing or a curse for growing CBD brands?
Will CBD products exceed retail growth expectations in 2020? What will the CBD industry look like post-COVID-19?
The Cannabis and CBD industry faces uncertainty in 2020. It’s difficult to prospect the continuation of high sales based on 2019 growth rates. Respectfully, our financial situation and health conditions were much different in 2019. According to 2019 research by Nielsen, Insights predicted that the Hemp and CBD industry will pass $2 billion in sales this year. Pending research, FDA-backing, and further consumer education, Nielsen projects a 250-375% increase in user growth in 2020.
Guided by COVID-19 changes, the need for an online marketplace is high. This is why contributing to consumer education is so vital, due to the online-only exchange that is becoming more ideal to those adhering to shelter-in-place orders.
Many companies are revising their initial 2020 sales forecasts due to COVID-19. In this period of confusion brands are facing frequently changing consumer buying patterns, stock issues, and retail closures in some places. It’s difficult to prospect the continuation of high sales and unfortunately this may mean bad news for recent entrants to the market. CBD brands and distributors are managing their inventory and business proceedings conservatively until we are able to return to a more normal pattern of life.
Who is buying?
Research shows pet care products account for a notable portion of the industry growth. If you’re a pet owner, this may not be too surprising, right? Pet owners are mindful of what they buy for their beloved companions. If you are actively taking vitamins and supplements for your own well-being, you’re much more likely to also create a daily regimen for your pet. This might include your dogs monthly flea and tick treatment, or maybe a daily CBD-infused dog treat!
To wrap up, there may be a long road ahead in receiving answers to all the questions we’ve posed here. This is where Mirus’ curiosity and experience comes into play. Our boutique agency is well-versed in launching new products to the public, properly educating consumers who may be unfamiliar with the CBD territory, creating brand awareness, generating consumer excitement and loyalty, gathering data and useful insight to present to retail partners, and building relationships at a store level, just to name some of our value. We’re excited to share new developments of the market and support CBD brands on their journey to success.
If you are interested in learning more about how Mirus Promotions can support your brand, contact us today – we’d love to connect with you!
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