Too Late to Join the CBD Space? These Hemp Industry Statistics Suggest Otherwise

The 2018 Farm Bill catapulted the CBD industry into existence. There are currently thousands of CBD companies in the US alone, and many more popping up every day. Though some of these brands will inevitably drop out due to stiff competition and strict regulatory protocol, others will proudly contribute to its exponential growth.

Importantly, much of a CBD business’s success will stem from unique product offerings. Though some product types are certainly favored, the relatively young age of the industry means there is still no brand loyalty. Essentially, consumers will continue to buy CBD products though not necessarily through the same brand each time. As such, companies that offer unique, targeted products are more likely to retain customers compared to those that sell generic CBD-infused items.

Today, we’ll analyze CBD market projections, discuss some of the most popular reasons people consume hemp-based cannabinoids, outline product and purchase trends, then wrap it all up with ways you can use this information to remain top-of-mind in the highly competitive hemp CBD space.

CBD Market Projections

Experts predict that the CBD market will be worth more than $19 billion by 2025 if the FDA legalizes CBD as a food additive. As it stands, only certain jurisdictions permit CBD-infused foods, including Colorado, Montana, New York, and Maine. Essentially, the FDA suggests that businesses cannot market CBD as a supplement because it’s already being studied as a drug.

Though only a few areas explicitly allow companies to add hemp-based CBD to food products, the nation’s people still want food-based CBD products. Experts predict that once the FDA permits CBD in foods, the edible market will flourish. Given current market trends, retail CBD sales should comprise roughly 77% of all CBD sales and pharmaceuticals will account for about 12%.

CBD Purchasing Trends

According to Statista, pain is the most common reason people consume CBD followed by stress, insomnia, arthritis, depression, and headaches respectively. Other common reasons people buy CBD products include digestive issues, skin abnormalities, and supplemental wellness products for their pets.

Regarding product types, lotions, balms, and topicals are of the most interest to consumers, followed by gummies, tinctures, and tablets respectively. However, foods and beverages are quickly growing in popularity, as are specialty products like dissolvable nano CBD powders.

Finally, buyers seem to prefer to purchase CBD online over in-store locations. According to Statista, e-commerce sales account for about 60 percent of all CBD sales nationwide with California leading the market.

Final Thoughts About These Hemp Industry Statistics

The CBD industry is gaining momentum despite a dip in sales during COVID. Now that the industry has been established for a few years, the top performers are securing their footing while the less active players drop out.

This is not to say that there isn’t still room to enter the CBD space, though! Indeed, interest is still high, but consumers seek both predictability and novelty of new items. Those who wish to remain competitive should secure reliable product manufacturers who specialize in both standard and unique items that will appeal to their specific target audience.

Contact us to learn more about the best CBD products for your store or to discuss business advice with our hemp consulting team. You can also view our product catalog online or follow us on social media for news and updates.