A Look Ahead at the Exploding CBD Industry
In just a few short years, the CBD market has transformed from being non-existent into a thriving industry
In just a few short years, the CBD market has transformed from being non-existent into a thriving industry. But we are only at the beginning of this transition. Big things are on the horizon as legalization grows in popularity.
Predictions and Trends in the CBD Industry
The CBD niche is an example of an emerging market that has great potential but faces some hurdles. Once these hurdles are overcome, it will be a fast race to the top. Here are some possible outcomes for the CBD industry in the next months and years.
Consumers today don't want just a CBD product that is effective. Consumers want to know where their CBD product comes from, how it's made, and who touched it throughout the supply chain. Zamnesia is one of the most trusted CBD suppliers in 2020. It is hard to find providers that provide transparency and quality.
The concept of "seed-to-sale" will explode in the next few months. It is the brands that promote education that will be most successful in CBD branding. Companies that promote too much will experience slower growth.
CBD brands were first starting to appear. Customers were thrilled to have products and would eat whatever was available. With so much competition in the market, we are seeing a shift. It is important to have a strong brand message that resonates.
Good branding is more than content, logos and graphics. It also involves the user experience on websites. Plain Jane is an excellent example of how this should look. Their ecommerce site is one of the best in the business. You can see the page for Sour Space Candy CBD hemp flower, one of their most popular products. Customers can add an item to the cart, much as they would with Amazon or other user-friendly platforms, and then click to buy. This is the brand experience that converts and engages.
Growth of 55+ Demographic
The boomer segment is a large but largely underexploited market for cannabis and CBD. Although many people are hesitant about trying CBD or cannabis, the marketing industry has been priming them for years. A growing number of people are now interested in it for medical purposes such as pain management. Industry experts expect this group to grow rapidly.
New Spinoff Products
It's a sign that the industry is moving in the right direction when there are many spinoff products and new ideas coming down the pipeline.
"CBD can be used in many ways. It can be added to everything, from gummies to tinctures to other products. As the years progress, we'll see a variety of hemp products," NewsAnyway.com reports. CBD oil is too versatile and valuable to be left alone or in topicals and gummies. Certain hemp oil blends are being developed by companies that include chamomile for sleeping or turmeric for your digestive health.
Testing and regulations are the key to spinoff products. Companies will need to invest the necessary time and effort to launch products in a successful manner as they grow.
Consumers will expect more transparency from brands as this industry develops. It will be interesting to see what happens when transparency is the norm. People on the margins, those who were previously hesitant about trying CBD due to the stigma attached, will be more open to the idea and may reconsider. This industry will feel normalized, something it has not experienced before. This is when the industry transforms from a niche with potential into a booming one.
Big Ideas Coming
BDS Analytics predicts that the US CBD market will surpass $20 billion by 2024.
"We are witnessing CBD maturing as a cannabis sub-category to a full-blown market of its own," Roy Bingham said. "Our growth forecasts for the CBD industry, across all distribution channels predict a compound annual rate of 49% by 2020."
There's great potential for businesses who get in early, and we are still very early in this industry. It is important to start from the beginning. You can build a foundation now and everything will follow.