According to reports, there are thousands of people searching about “Hot CBD Trends 2020” daily, and statistics indicate that 39% of people will look more closely into CBD this year.
2019 was a breakout year for CBD and this showed in the massive waves of interest the cannabinol generated, both from consumers and private label CBD manufacturers. From dog treats, to infused beverages, CBD shampoos and even toothpaste, everyone wanted to get in on the act.
But with 2019 over (and more than 8 months of 2020 under our belts), how does the raging interest in CBD compare for this year? What are the CBD trends 2020 has brought in the industry and how are they shaping consumer interest? Let’s find out!
The rise of e-commerce
It’s practically impossible to talk about CBD trends in 2020 without discussing the massive impact e-commerce is having. Due to the unique nature of CBD products and their recently legal status, e-commerce was not a terribly developed sales channel for CBD.
But that has been changing in 2020. Due in large part to the novel challenges posed by the coronavirus pandemic, many businesses had to evolve and find new ways to keep selling. As a result, more businesses than ever before have fleshed out their online direct-to-consumer processes and they are being rewarded with rising sales.
One report indicates that online CBD sales have increased by 61% compared to 2019, in just the first 6 months of 2020. Some businesses are seeing 200%-300% increases in customer orders and most of this is coming from e-commerce channels. A UK report finds that CBD customers in the UK have increased, as more than 8 million have either bought CBD products this year or plan to do so.
Although the necessity of e-commerce sales has been a dark spot for many CBD manufacturers, it is turning out to be one of the hottest trends of 2020.
People are spending more
Manufacturers and retailers of private label CBD products will be delighted with this one. Statistics show that consumers are not only becoming more interested in CBD this year, they are also willing to shell out more for their CBD.
A report from the Brightfield Group shows that 44% of regular CBD consumers are spending between $20-$80 a month on CBD products. But that’s not all. Another 13% of customers are spending higher than $160 a month.
The increasing willingness of consumers to spend more on CBD is a likely by-product of the massive publicity generated by the industry in 2019 and the diverse use cases of the compound. We are seeing the growth of a rapidly developing ecosystem of CBD products, from sporting wear, infused-beverages and foods, to tinctures, oils and bath bombs.
And speaking about foods…
CBD edibles have been toasty in 2020
There was always something special about CBD edibles. They come in almost endless varieties, are often ridiculously tasty and constitute perfect carriers for CBD. What’s not to love about them?
CBD edibles have really grown in popularity in 2020, with more people willing to try out gummies, candies and other tasty ways to enjoy CBD. 88% more people are trying out gummies and candy compared to last year.
In addition, baked CBD goods are rising in profile, with 10% of people also beginning to prefer them, compared to 2% in 2019. Whether it’s through CBD brownies, cupcakes or chocolate cookies, people are enjoying their sugar fix with a dash of CBD on the side.
From all indications, this is one of the CBD trends 2020 will only see more of, as CBD edibles have a lot going for them. The fact that they are a great way to increase the bioavailability of CBD will not have escaped businesses and we may see more specialty cannabinoids being sold using CBD edibles.
Increasing range of customers
The demographic profile of CBD users is starting to widen. While CBD use was initially more prevalent amongst younger people, the demography of users is becoming broader.
According to a Consumer Reports poll, 15% of people aged 60 and older have tried CBD at least once, and this number may be set to grow. This is because of the unique ways CBD is being used, especially amongst the older population.
Use rates continue to be high amongst younger individuals however. 40% of people aged 18-29 have tried CBD, as well as 32% of those between 30-44. In addition, 23% of people between 45-59 have also tried CBD.
As more products from US-based CBD manufacturers come on the market, it is expected that these will appeal to a wider audience.
More specialty cannabinoids
Although this trend still in its infancy, we are witnessing a growing body of manufacturers beginning to pay attention to other cannabinoids. The various strains of cannabis, including the hemp plant with legal THC levels, have hundreds of cannabinoids in them.
While THC and CBD are two of the most popular of this lot, the other compounds have come under increasing scrutiny recently. For instance, compounds like cannabiniol (CBN), limonene and several other terpenes are being studied closely.
We just might see an arms race of sorts as US based hemp manufacturers and other hemp companies around the world hustle to present these compounds in products that are helpful to consumers.
Growing CBD beauty market
The CBD beauty sector has been growing in 2020, especially in relation to CBD skin care. According to reports, CBD skin care is poised to reach €870.5 million in revenue by 2024. This will also be up to 10% of the global skin care industry.
In 2020 alone, 18% more people are using CBD skin care products and this will only increase in coming years. Products like bath bombs, facial gels and creams did well in 2019, so there was a lot of expectation about how they will push on in 2020.
While the coronavirus pandemic has stunted growth in the sector to some extent, the figures we’re seeing are still pretty good. Hopes are high that this trend will continue in 2021, when companies will have a more conducive environment to really explore growth options.
Certificate of authenticity
Finally, and perhaps most importantly, there’s a growing insistence from consumers and industry peers that CBD businesses must take their branding seriously. Due to the lack of regulation in the industry, and the continued silence of the FDA, consumer trust is not very high at the moment.
This is especially due to the “greenwashing” that is being conducted by several questionable brands. These businesses make products that either have no CBD, more THC than is legal, or different kinds of CBD than customers need. But they present these products differently to consumers, leaving people feeling scammed and damaging the integrity of the industry.
A recent study by Penn Medicine found that roughly 70% of CBD products that are being sold online were mislabeled. Practices like this are a concern and, as a result, more people are calling for business to adopt certificates of authenticity/analysis.
This certificate is usually issued by a neutral 3rd party laboratory which will test the business’ CBD products and certify its contents. Consumers can request for these certificates directly from the CBD business or from the 3rd party testing provider.
As more people become interested in CBD products, and pending the completion of regulation efforts, we expect certificates of authenticity to grow in significance.
These trends underlie how the CBD industry is growing and evolving in 2020. But if indications are anything to go by, there’s a lot more to come. How else do you think CBD is evolving this year and are there any other CBD trends 2020 created you think we should know? Get in touch!