CBD Usage today

SHO Inc. February 21, 2024 0 Comments

Monthly cannabis consumption trends in the U.S. reflect significant use of both cannabidiol (“CBD”) and tetrahydrocannabinol (“THC”), indicating a diverse market dynamic. As of 2022, about 26% of Americans reported using CBD, known for its non-intoxicating effects, for various health reasons. Similarly, THC, the psychoactive compound in cannabis, has also been widely recognized for its medical benefits, particularly in alleviating symptoms like chronic pain, nausea from chemotherapy, and appetite loss in AIDS patients.

Consumers turn to CBD mainly for pain management, anxiety, and sleep disorders, with 75% finding it moderately effective and nearly half rating it highly effective. THC also plays a significant role in medical treatments, as evidenced by FDA-approved medications containing THC for specific medical conditions.

In terms of expenditure, the impact of CBD on the market is substantial. In 2021, consumers spent around $5.31 billion on CBD products, indicating a robust and growing market. CBD tinctures were the top-selling products, amassing sales of $976.07 million. This financial data underscores the significant economic footprint of the CBD segment within the broader cannabis industry.

Additionally, the use of CBD extends beyond human consumers. About 50% of pet owners use CBD products for their pets, and 35.12% of veterinarians recommend its use, reflecting its perceived benefits and safety across different applications. ^[1]

Graph: The distribution of reasons why people use CBD. The data shows that the most common use of CBD is for pain relief, with 64% of users reporting this use. Anxiety and stress are the second most reported reasons for using CBD at 49%, followed by sleep and insomnia at 42%. Other reasons include the management of arthritis symptoms (27%), depression (26%), migraines and headaches (21%), recreational use (12%), and for pets (8%). Additional uses include other mental health issues, digestive issues (both at 8%), skincare concerns (6%), general health benefits (5%), and other reasons (2%). The percentages reflect the proportion of CBD users who use the product for each listed reason, highlighting the wide range of applications for CBD among users.

CBD products are becoming increasingly popular

The demand for CBD products has significantly increased in recent years, driven by various factors. In 2022, the global CBD market was valued at USD 6.4 billion and is projected to grow at a compound annual growth rate (CAGR) of 16.2% from 2023 to 2030. This growth is attributable to the increasing interest in the potential health benefits of CBD, which has led to more investment in research and development, as well as the development of a diverse array of CBD products, including edibles, topicals, and beverages.

The U.S. CBD market, in particular, has witnessed exponential growth. From $108 million in product sales in 2014, the market jumped to $1.9 billion by 2022. The demand for private-label CBD products is also rising, with the private-label market expected to reach $13 billion in 2023. The legalization of hemp and the passing of the 2018 Farm Bill have been pivotal in this growth, with projections suggesting the market could reach $20 billion by 2024.

The market’s expansion is also driven by mainstream retailers increasingly focusing on selling CBD-based products due to higher profit margins and growing demand. For instance, in March 2023, CV Sciences, Inc., a U.S.-based consumer wellness company, expanded its range to include hemp extracts and other natural ingredients. This shift is evident in the competitive nature of the market, with more companies offering similar products and major health and wellness stores such as Walgreens Boots Alliance, CVS Health, and Rite Aid now offering CBD-based products.

The growing acceptance and usage of CBD products, bolstered by government approvals, have been key in boosting production and sales. CBD is increasingly used for treating conditions like anxiety, seizures, and pain. Its popularity is also rising as an ingredient in skincare products for treating acne and wrinkles, with major retailers like Sephora and Ulta Beauty adding CBD skincare products .

The business-to-business (B2B) segment has dominated market segments, accounting for a revenue share of 54.7% in 2022. This is due to a rise in wholesalers offering CBD oil and the increasing demand for CBD oil as a raw material. Additionally, the business-to-consumer (B2C) segment, particularly in hospital pharmacies, is expected to experience significant growth. This growth is attributed to companies partnering with retail pharmacies, increasing the availability of CBD products, and the growing number of patients choosing CBD as a treatment option. ^[2]

The use of CBD across different age groups