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The Rise of the CBD Industry and Where It is Headed

The Rise of the CBD Industry and Where It is Headed

Apr 8th 2020

In the last decade, CBD became a wildly popular ingredient in food, beverages and nutritional supplements. The CBD industry is still very new, which generates enormous opportunities for early adopters, companies that successfully tackle consumer and market challenges.

Regardless of the buzz, Gallup showed that just 1 in 7 American adults actually use CBD. For CBD companies, this should signal big opportunity regardless of how saturated the marketplace in the U.S. is now.

Content marketing has become a crucial driver for CBD sales. Online articles, for instance, prove to be a powerful method of discovering about CBD as 44 percent of international consumers said they heard about it from an internet resource. The CBD marketplace continues to evolve and new marketing and educational campaigns aim to reach those customers and gain their confidence.

One major obstacle for brands is credibility. Brands need consumers to be aware of the reliability, consistency and safety of their products. CBD products contain legal, concentrated cannabis extracts and they are stated to provide physical and psychological health benefits. When awarded that definition, over 40 percent of global consumers stated they'd be ready to try out those products. However, 29 percent of consumers stated they wouldn't or were uncertain about trying products with CBD, according to https://fmcggurus.com/

The biggest thing that makes people hesitant to try CBD is unpredictability. 41 percent of customers said they don't understand enough about CBD. Furthermore, 38 percent were worried about possible side effects. Although customers revealed concern, if they had more knowledge regarding CBD, 42 percent stated they'd be more inclined to try it. This shows how important it is for CBD brands to invest in educating the public.

Product Claims are Especially Important in the CBD Industry

When targeting CBD customers, claims are significant. The top assertions consumers stated they'd discover appealing are support with depression and nervousness (47 percent ). CBD's benefits on sleep were also very appealing to those polled (46%). These claims are significant as FMCG Gurus '"The Rise of CBD−International 2020" report revealed that 42 percent of international consumers are prepared to pay a premium for products that make accurate claims regarding those issues.

Claims are a difficult area for CBD, particularly in the gold rush U.S. marketplace where regulators have begun to warn against medical claims. The CBD industry is becoming more mainstream everyday, with many customers prepared to try out these products for healthcare. But, it's necessary to recognize that many barriers exist. It's critical that manufacturers and brands are transparent and clear with their customers. They should strive to help them understand the products as much as possible.