Doubtlessly, the CBD industry is making strides in its attempt to make hemp legal federally in 2018. With the US Farm Bill, Congress opened the door for the entire new industry to build itself from scratch. This meant a change right from:
Farming to production.
Manufacturing to sales.
And whatever is present in between.
As per estimates, the CBD industry will grow into a $7.8 billion industry in 2022.
Heartening CBD Sales Statistics!
It is a lucrative industry where the companies are making the best effort to earn many profits. We are discussing these statistics related to CBD products which are prevalent after the impact of the changes in the past years in the industry.
In 2019, the US cannabis market grew by more than 700%: The cannabis industry is continuing to proliferate.
You will find that you can get different types of these products, including oils and tinctures. We also have oils and tinctures (comprising 44% of the cannabis market in the US), topicals (26% of the Market), capsules (22% of the Market), and infused beverages (19%).
CBD products are widespread in Western countries, especially in North America and Europe. It is also common in the Western US states. Moreover, 27% of the entire population that has tried the CBD product are citizens of Western US states. Though most of us may think that European and US manufacturers grow marijuana on their respective continents, most CBD is grown in Africa, South America, and the Middle East.
The cannabis-infused and beverage markets are getting increasingly popular among regular users. As per specific predictions, the cannabis market was valued at $173 million in 2018. And it is predicted to go up to $600 million in 2022. A further increase with time may occur with time, which may reach $1.4 billion in 2024.
Stats of Demographics of CBD Sales
While we may consider that older people use medical marijuana, the fact is that it is highly popular with the younger generation, comprising people between 18 and 34 years that are possibly using 39% of hemp-based products. Moreover, people who are aged more than 65 comprise 9% of CBD hemp consumption. Additionally, just 15% of people above 65 years have tried these products. Also, here are some facts about average CBD user stats.
31% of CBD users are between the age of 35 and 49.
22% have ages between 22 and 35.
22% have an aged between 50 and 64.
Medical cannabis has become highly popular that many people are using it regularly as a supplement or a wellness drug. As per the CBD statistic, around 10% of people between 18 and 44 use it regularly.
CBD products are getting highly popular with pet owners who are greatly inclined to administer their pets medical marijuana to a greater higher extent than all other drugs. The marijuana market increased by nearly 950% in 2018.
US consumers utilize CBD in several ways. CBD is beneficial in chronic pain, and nearly 40% of customers use it to treat pain. It is also beneficial in:
Anxiety (20%)
Insomnia (11%)
Arthritis (8%)
And migraines (5%)
In the US, Caucasians prefer using medical cannabis. In this, we have about 66%, white users. It is worth noting that women are highly likely to use this product, who comprise 55% of the Market. You may think that singles are more likely to take medical cannabis, but the fact is that.
43% of users are married.
61% live with their partners.
66% of Gen Z shoppers use social media to find out the correct product before purchasing it. Millennial buyers are also highly independent of Generation X or baby boomer buyers in their path to purchase. Deep research is helpful to you in making the right purchasing decisions.
Stats Related to Growth of CBD Online Retail
Now, it’s time for the ‘green rush.’ The industry has been here for seven years. There are high chances that consumers will choose a specific brand and become loyal to it. Moreover, as we are observing, demographics are beginning to shift. There are also predictions about a significant shift from in-store to online retail. The CBD industry presents you with a different look in the present scenario.
A growing number of companies are getting involved in the production process of these products. Here are a few stats to check.
There are more than a thousand medical marijuana companies in the US. About 850 companies are focused on marijuana-based products (850 companies), while the rest of the 150 companies are based on hemp-derived products.
Several financial institutions in the US are highly focused on the cannabis business. In 2018, there were about 400 banks that financed these projects, while in 2019, this number reached 633 banks.
A significant challenge for the US cannabis industry is labeling and monitoring the cannabis content. About 70% of the products mention incorrect data on their labels. Moreover, 42% of these products have a higher amount of CBD than what is mentioned, and 26% of brands have more than what is claimed.
There is also a higher production, with companies trying to utilize more agricultural surface space for hemp and cannabis. There were around 25 000 acres used for this crop in 2017, and in 2019, this rose to 78 000 acres.
Many times, this has been used to replace pharmaceutical opioids. And in 36% of cases, people changed this medication in place of opioids.
New Changes: The Overall Impact on CBD Industry
It’s most important to understand what it will look like in the coming time. Experts have made specific predictions for the CBD industry in 2022.
Shift In Target Audiences Shift Means A Shift In Your Strategy
If you consider an average CBD user, what comes to your mind? Most likely, it is a mustachioed hipster wearing capris and a man bun? An exercise enthusiast would like to get several health benefits from CBD?
The real customers may be a surprise for many. Now, you have to work on your sales and marketing strategy. There has been a shift in consumer preferences during the COVID-19 pandemic. And the different demographics expect varied outcomes from their shopping experience.
Legalization
Many new THC isomers became famous in 2021, including Delta 8 and Delta 10 THC. Consumers were highly eager to adopt the products. But, they faced substantial legal challenges in the courts.
To make things easier, few states are modifying the definitions of “THC,” which includes the entire range of THC isomers and the consumable hemp products with a THC concentration (including all delta 9 THC, THCs, and THC isomers) of less than .3%.
Such changes are likely to occur in 2022, with cities, states, and the federal government wanting to look at hemp, CBD, and marijuana laws. The trends indicate an increased acceptance of marijuana (and hemp) in its entirety. But, there can be unprecedented situations in cases states face opposition.
There is another interesting sales statistic based on whether there are more than 91% of US citizens prefer products that go for medical cannabis legalization. But, the percentage of people who use these products is much lower than 19%.
The CBD market is witnessing sharp growth over the past several years due to numerous countries that have changed their CBD legislation. The global CBD market was worth $3 088 million in 2018. The CBD sales statistics and projections reveal that the Market will witness a growth of $3.52 billion in the years between 2020 and 2024.
Present-day Challenges of the CBD Industry: Payment Processing
People in the CBD business report that finding quality payment processing partners is highly challenging. First of all, CBD is a high-risk vertical compared with cryptocurrencies and online gambling. It impacts the payment processors that do not prefer to work with CBD businesses for in-store and online transactions. You are left with the option of integrating with payment processors charging high and having heavy contracts to ensure less liability.
However, there are still legal battles going over CBD, hemp, and marijuana status. Several payment processors won’t prefer to enter the industry. While there may be a high risk, merchants will still have a lot of payment processors. Payment processors such as Pinwheel and Inovio are helpful to growing CBD customers.
Insights Into How CBD Retailers Can Adapt to the Market
Payment processing is not the only aspect of the business which is of concern to marketers. There are also significant challenges in marketing and advertising over the many years since legalization. Google updated its Paid Search Policies in 2021 for including cannabidiol (CBD), an unapproved substance search term. Google’s “Three Strikes” rule is also being used to penalize accounts violating their policies. Remember that accounts violating the policy three times in 90 days get suspended.
To reach your audience, you need to find unique ways to send their message to prospective customers. You need to reach out to influencers, brand ambassadors, and affiliate marketing which is getting highly popular in CBD verticals. Some merchants also like to go for more traditional advertising avenues such as radio.
Some Heartening Results For E-commerce CBD Retail
As per CBD sales and stats, the internet is a highly preferred CBD sales channel in 2022, which amounts to 41% of the entire sales. 28% of sales happen from smoke shops, 20% through natural, specialty, and retail, 9% from drug stores, and 2% from mass-market retail.
There has been a high surge in people’s interest in CBD products in the past some years. There has been an increase in Google searches for the term CBD in the past some years.
There has been a 4X increase in the search for this term since 2017. In 2018, “CBD gummies” was also a trendy food-related term in the US, which was the third highly searched term related to cannabis products
The Growing Competition
2020 was crucial for this industry businesses that did not take to the greener pastures. However, such things show you a high share of challenges. CBD is likely to be widely accepted by more prominent and national brands which will start creating and selling their customized CBD products. Certain renowned brands such as Sephora and Urban Outfitters will start selling CBD products. Moreover, 2022 will surely see so many national and international brands which will follow the existing CBD brands.
Tackling All The Challenges
Small- and medium-sized CBD retailers see several challenges. You require being at the top of the game to stick to your competition. To this end, it is necessary to consider these factors to create your marketing strategy for your CBD business. Find out who your customers are, and then you need to meet their expectations.
So, to do that, always find a partner who can help give you the tools you need to taste success. Sellers need to adapt their stores quickly depending on the market changes. Always choose a standard SEO method alongside marketing tools to ensure that you get the complete worth of your marketing dollars. The best CBD SEO Services partner with several payment processors, ensuring that your checkout process is easy and smooth.
Cannabidiol-based products are one of the most popular products these days. This is because these products are made from cannabis and have high efficiency. It has many people who use them for various medical conditions. There will be a rise in how this industry will increase significantly. Several countries will legalize medical marijuana, causing shifts occurring in drug consumption patterns. Moreover, in the healthcare industry, there is a shift in trends with the patients trying marijuana for various issues which seemed untreatable at an earlier time, in place of using traditional drugs.
Conclusion
All these statistics portray a rosy picture of the growth of the cannabis industry. The cannabis market has a promising future. You can get a sharp increase in demand in the US and other countries. As the markets become highly flexible and the companies become well established, we can expect to get more products with higher quality.
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