America is the Front Runner for CBD in Exercise Recovery

In October 2020, High Yield ran a survey of over 35,000 American adults in order to understand the current, former and would-be CBD consumer. The large data sample has enabled us to identify a number of niche segments within the emergent CBD sector, one of which is the use of CBD within the exercise regime. 

The US is well-placed to become the front runner in the CBD-for-exercise-recovery products market. High spend on physical activity, a strong cult of celebrity and widespread use of CBD will provide the optimum climate for the expansion of this current niche.

Exercise is on the Rise

Growing awareness of the health implications of obesity have put a focus on health and wellness with exercise and sport forming a central role in maintaining health. Participation in exercise is on the rise; according to the US Census Bureau, in 2019, almost one in five Americans aged 15+ engaged in sports and exercise every day. This is rising faster among women, but a higher proportion of men incorporate daily physical activity into their lifestyles. The health and fitness industry still generates big bucks and the US market in particular could see a significant return on investment for those targeting the exercise recovery segment of the emerging CBD industry.

• According to the Global Wellness Institute, the US are the biggest spenders on physical activity, parting with some US$265 billion per year on physical activity - the equivalent of an estimated $810 per person.
• The US market is projected to grow by 5.2% annually, outpacing GDP growth projections (3.5%) over the next five years. The US will account for about 25% of global market growth during this period.
• By comparison, Deloitte estimates Europe's Health and Fitness industry to be worth some €27b in 2018.

Compared to other usage occasions such as pain management, addressing stress/ anxiety or sleep issues, the use of CBD for exercise recovery is definitely niche. In addition, although an estimated 50 million people in the US and Canada get the recommended daily amount of exercise, just 2% use CBD in their workout routine. Indeed, even among CBD users, just over one in 10 use it for exercise recovery. This represents a huge opportunity for segment growth. 

With more people taking up exercise, demand continues for products and brands that help to minimise injury and speed up the recovery process in terms of reducing inflammation, post workout aches and improving muscle repair - all of which CBD claims to deliver on. With higher engagement in daily exercise, it follows that men are more likely to use products that boost their sporting performance and recovery and this is borne out in the demographic profile of those who use CBD as part of their exercise regime (see High Yield’s recent publication: CBD Consumer Trends 2021 - Exercise Recovery).

Are Celebrities the Key to Mainstreaming CBD as an Exercise Aid?

There is evidence that the role of celebrity spokespeople is influential in product purchase among adults who use CBD for exercise recovery. They are twice more likely than all CBD users to regard celebrity endorsement or recommendation as a trustworthy source of information about CBD. 

In the US, there has been a rising presence of sports professionals such as Klay Thompson, Alex Morgan, Travis Pastrana & Paul Rodriguez launching their own CBD lines. Canadian Rugby Team, the Toronto Wolfpack, was the first to launch a CBD product branded by a professional sports team. 

In Europe, a number of sportspeople from the worlds of Football, Rugby, MMA and even golf are using, endorsing or launching CBD products. This is helping to cement the role of CBD in the workout routine and with launches in topical rubs, the focus is on the physical recovery following exercise.

Entry Point for Exercise Recovery Lies in Topicals

The mainstream exercise products market is dominated by waters, juices, protein shakes and energy bars. However, High Yield’s research shows that the CBD exercise products market is much further behind in the consumer product relationship.

• Seven in 10 CBD for exercise recovery users use supplements and a similar proportion also use topicals. The sub categories of CBD recovery rubs and CBD gummies being used by more than six in 10 among this group. 
• However, despite a high product repertoire (50% of the CBD for exercise recovery users currently use products across four or more market categories), they are less likely to consume CBD drinks. In fact CBD sports drinks are consumed by just four in 10.

Once gyms reopen, this could become a good opportunity to put CBD sports drinks in front of a target audience that is keen to try.

Those who use CBD for exercise recovery are different to the general CBD consumer. They have higher expectations of products and brands and place high priority on healthfulness. They are keen readers of labels and it is likely that CBD on its own will not be enough to entice sales. Blending with other functional ingredients could help to steal share of an already established market, given the higher than average propensity of consumers to also use dietary supplements and products with enhanced ingredients such as protein etc.

Although there is a belief that specialist brands know more about the market, CBD for exercise recovery users welcomes the presence of bigger brands in the hope that they will improve standards. In the short term, we expect to see M&A within the sector with larger brands purchasing the most reputable names to lend the standards of the bigger brand to the specialist knowledge of the indie operators.

Keeping Segment Growth on Track

As a market matures, so too does the sophistication of its product offering. HYI has observed a greater concentration of products in the post-workout recovery sector but in time, we would expect to see a more holistic approach with pre/ during/ post segmentation of products such as a shot to boost performance, CBD waters to hydrate during the workout and possibly a replenishing snack bar to boost post-workout recovery. 

For the moment, the market is dominated by males, but as more women take up exercise, it will reach a tipping point where brands and packaging are likely to take on a much more gendered split.  

For now, the market looks different to a post-pandemic market where opportunities for retail of sports recovery products will increase significantly. Current opportunities for product use, such as in gyms, fitness classes and competitions or events are all curbed. As well as presenting challenges for the market, it is also shaping consumer behaviors. High Yield’s research was conducted 6 months into the pandemic, and it will be critical to track consumer behaviors in the coming years to understand which habits formed during the pandemic are here to stay and which will return to their old ways. 

High Yield Insights has published a report on the CBD consumer who uses CBD for Exercise Recovery. For any questions relating to this study, please get in touch.