There is no denying that the CBD (cannabidiol) sector has grown tremendously fast in the last few years. According to the National Retail Federation (NRF), 2019 saw a 700% growth in customer demand for CBD-based goods, and Rolling Stone reports the market will reach $22 billion by 2022.
Those are some gigantic numbers, and it is worth asking: what is driving that growth?
And furthermore, how do retailers capitalize on the CBD industry?
To answer these questions, we took a dip into the CBD business and identified some emerging trends in the area. Whether you’re someone searching for business opportunities or you are CBD retailer who would like to grow your business, here are the top trends to keep an eye on.
1. Consumers are Looking for CBD over any other health trend — beating acupuncture, meditation, and veganism
Cannabidiol goods have always been tremendous in the domain of health and health, but if there is any doubt of just how large CBD is in the area, think about the fact it is currently the most-researched health and wellness trend on Google.
Industry data indicates that searches that said CBD and cannabidiol had 125.9% year over year growth in 2017 and 160.4% growth in 2018.
As of 2019, there were 6.4 million CBD-related searches from Google. That is 3 times more than meditation and 7 times greater than acupuncture.
According to Hemp Industry Daily, the Amount of cannabidiol-related queries were higher than common health and health searches, including:
Clearly, consumers want to know about — and probably purchase — CBD goods, so if you are a participant in the space, now’s the time to beef up your presence on Google. Ensure that your store is listed on Google My Business, so your store will appear in local searches.
A great example of a shop with a strong Google existence comes from The CBD Store in Thousand Oaks, California. In addition to having a full Google profile with various positive reviews, Your CBD Store’s list also has a lot of great-looking photos showcasing the shop’s interiors and products.
2. Significant retail will continue to fuel expansion
CBD continues to make inroads in the retail sector (and the mainstream world generally ). Cannabidiol goods are increasingly gaining the confidence of legislators and customers. Since the NRF points out, CBD was the subject of over 250 clinical trials and it was legalized by the 2018 Farm Bill.
This has prodded larger retailers to adopt — or at least be open to — CBD solutions. Walgreens, for instance, is currently selling CBD goods in nearly 1,500 stores in select countries. Meanwhile, The Vitamin Shop additionally hopped on the CBD train by partnering with trusted brands in the area.
Big retail’s adoption of CBD also benefits small to medium companies. CBD products becoming more widespread on the shelves of mainstream retailers brings credibility and increases customer confidence in cannabidiol.
The more mainstream CBD becomes, the better it is for the industry as a whole — which includes large and smaller retailers alike.
3. The pet section presents a massive opportunity
It’s not just individuals that are fans of CBD solutions. According to current reports, pets (or at least the people who have them) are embracing CBD. Nielsen and Headset’s 2020 Pet Industry Green Paper predicts that hemp-based CBD pet products represent 3-5% of CBD sales in the USA by 2025.
As Supermarket News reports:
Almost three-quarters of present CBD customers have pets, and nearly one-quarter of U.S. pet owners currently use CBD for themselves, their pets, or both, noted the report. Nearly 26 percent of U.S. adults with puppies are utilizing hemp-CBD products. Half of those already utilize CBD for their dogs, while the other half just use it for themselves.
What does this mean for retailers? If you are a CBD merchant, you might want to think about expanding your range to add merchandise for your clients’ furry friends. If you are a pet supplies shop, see if it makes sense to begin carrying CBD products.
4. COVID-19 has prodded customers to Buy CBD products
The coronavirus has negatively affected many retail categories, but CBD is NOT among them.
An April 2020 poll from the National Retail Federation discovered that 70 percent of respondents made a purchase because of quarantining, social distancing, and working from home. CBD, together with alcohol and home organization products, were a few of the highest purchases.
Research from Brightfield Group saw a similar fashion. A survey from March 2020 discovered that 39 percent of consumers expected to utilize more CBD due to the pandemic. The numbers are even higher among Millennials and Gen — 49 percent of those consumers intend to utilize CBD more in the coming weeks and months.
This should not come as a surprise. Cannabidiol is promoted primarily as a health product, and with COVID-19 prodding customers to be worried more about their health, it only makes sense that they would look into CBD.
This trend will not slow down anytime soon, meaning that CBD merchants still have loads of space to grow. It is time to find more ways to capitalize on this opportunity.
5. Brick-and-mortar + ecommerce is a winning mix
CBD products are sold offline since consumers typically have a great deal of questions about cannabidiol. It is always good to have in-store associates explain how different oils, supplements, lotions, and other things operate, so shoppers can make informed decisions.
However, with social distancing measures in place, traffic to physical stores are limited and people are increasingly turning to ecommerce for their CBD needs. In actuality, online CBD retailers saw a spike in ecommerce sales, according to Food Navigator.
It is more important than ever for CBD merchants to adopt an omnichannel approach to retail. If you are already selling offline, make certain to set up shop offline. And in case you already have an ecommerce website, do not overlook brick-and-mortar retail. The CBD space is getting more crowded; using a solid online and offline presence is the best way to compete.
Selling CBD? Arm your retail business with the right tools and information
With the CBD industry changing and growing quickly, keeping up can be challenging. What products should you stock up on? What is the next big thing in? Which customers should you market to?
The best way to remain on top of everything is to equip your organization with a retail management system that provides you with the tools and information you will need to get ahead.
►►► ConnectPOS is a cloud-based POS software compatible with multiple platforms including Magento, Shopify & Shopify Plus, and BigCommerce.
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