Hemp-Derived CBD Beverage Sales were down 32% for the year ending March 27, 2021 compared to the same period in 2020.
The data came from analytics firm NielsenIQ. The firm collected data from 30,000 retail stores across major grocery chains in grocery, drug stores, and convenience stores.
Their research also found a decline of 13% in the CBD sales category. What could have contributed to this decline in Hemp-Derived CBD Beverage Sales?
One analyst at NielsonIQ believes it could have more to do with an exaggerated increase in sales during 2020.
Why The Decrease in CBD Beverage Sales?
“If anything, our assertion is that like many other CPG categories,” said Rick Maturo, Nielsen’s associate director of client Services for cannabis. “The pandemic has reinforced online CBD buyers’ behaviors and has also driven many ‘would-be’ brick-and-mortar shoppers to online channels due to the safety and convenience aspects online channels can provide,”
NielsonIQ found that most hemp-derived cannabinoid sales in the U.S. market come from e-commerce, specialty retail stores, and manufacturers who sell directly to consumers. According to Maturo, online and specialty stores can offer more product variety and levels of potency, giving them an advantage over other types of vendors.
The FDA (U.S. Food and Drug Administration) has also not approved over-the-counter CBD sales, making larger retailers reluctant to invest in these types of products.
Nevertheless, consumers still seem to prefer Hemp-Derived CBD Beverages, and that could be a good sign for the future of their sales.
The Future of Hemp CBD Beverage Sales
If Maturo’s theory about the pandemic causing an exaggerated spike in sales for 2020, small retailers probably have little worry about when it comes to Hemp-Derived CBD Beverage Sales.
Retailers can simply continue to offer consumers their preferred types of CBD beverage products, and the data holds a clue to the demand. About 75% of all Hemp-Derived CBD Beverage Sales in this last period were hemp-derived CBD water products. Seltzers and sparkling waters making up about 50% of all hemp-based CBD water sales.
According to Nielson, 13% of Hemp CBD Beverage Sales came from ready-to-drink tea products. The data also revealed the dosage preferences of consumers, with more than 50% of single-serving ready-to-drink beverage sales having 25 milligrams of CBD or more.
Maturo still seems to think that Hemp-Derived CBD Beverage Sales will account for approximately 19% of all CBD sales by 2025. This would be about $1.3 billion in total sales. The future of Hemp-Derived CBD Beverage Sales will depend on when big retail stores start putting Hemp-Derived CBD Beverage products on their shelves. This is why a lot of CBD Manufacturers and retailers are watching closely to see what the FDA will do next.
This CBD industry news update is brought to you by CBD Manufacturer, Spring Creek Labs.