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CBD growth slows in 2021

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2022-05-20-Cbd market growth slows in 2021

Due to price compression and the shift to lower-priced products, overall growth in the CBD industry slowed in 2021, according to Brightfield Group's first quarter market industry update. With continued delays in FDA regulation, retail expansion has remained relatively modest.

Looking to the second half of 2021, the top companies remain relatively unchanged compared to the first half. Gummies were one of the biggest emerging CBD products of 2021.

Market share cbd companies

Although the top 20 companies increased their shares in the fourth quarter, this change was not significant enough to fully consolidate their market share. Techniques companies used in the fourth quarter of 2021 and early 2022 to increase their total stocks include.

  • Launch of products containing small cannabinoids such as CBDA and CBGA to stand out.
  • Advertise their products to contain THC to benefit consumers who live in states without regulated programs for adult use. This by staying below the legal limit of 0,3% allowed for the sale of hemp-derived products.
  • Continue to expand retail partnerships with independent stores.
  • Preparing to increase their presence in states that recently passed their own legislation to regulate CBD, such as California.

gummies

Many of the recent innovations in gummies have come from companies that combine their candies with functional ingredients to enhance efficacy. CBD is, for example, combined in a gummy with caffeine, L-Theanine and vitamin B12.

Gummy products are the fourth fastest growing product type during the forecast period, despite starting in 2021 with one of the largest sales bases. They are expected to benefit significantly in the medium term from a national regulatory framework, selling them alongside regular vitamins and supplements.

Consumer use

CBD consumption among product buyers steadily increased over the course of 2021, with more than 45% of those surveyed reporting daily use of CBD products in the fourth quarter. Throughout 2021, the increase in heavy use was one of the biggest drivers for the market in general.

While attracting new consumers will be key to growth after increased CBD regulation, benefiting existing consumers with quality products is key to increasing sales in the short term. Brightfield Group is a research firm for emerging categories including CBD, cannabis and wellness.

Source: cstoredecisions.com (EN)

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