International research firm Market Data Forecast recently released its CBD Gummies Market Trends and Growth Report 2020-2025, reporting that the global CBD gummy market hit $998.2 billion and will enjoy a reasonable growth rate (CAGR) of 31.9% between 2020 and 2025. Here are four reasons the segment is growing ...
1. Perceived Health Benefits
Three-quarters of participants in a recent survey featured in the report said they associated CBD consumption with at least one health benefit. “Consumers claim that edibles with CBD are incredibly effective in controlling stress and anxiety,” the report read.
2. A Preferred Format
The consumer study also found that 36% of CBD consumers use edibles and many cannabis consumers are looking for healthier alternatives to smoking. According to the report, CBD-infused gummies “should replace other consumables such as chocolate, cookies, brownies and candies that are not considered healthy.”
3. Demand for Multiple Concentrations
When segmenting CBD gummies, the report looked at high concentration (over 20 milligrams of CBD per dose) and low concentration (under 20 milligrams of CBD per dose) options and found growing demand for both. High-dose gummies are projected to “grow strongly” between 2020 and 2025 and are largely used by people with more serious medical needs, such as sleep disorders or glaucoma. Low-dose gummies are preferred by consumers new to the category. Already estimated to be the largest CBD segment of 2018, Market Data Forecast predicted that uncertainty around potential side effects as well as a low price point would further increase consumer demand for low-dose gummies.
4. Growing Distribution Channels
The report also considered CBD gummy distribution channels, looking at both online and “offline” sales. Just as there was demand for both ends of the dosage spectrum, Market Data Forecast found demand for multiple purchase channels. The report found that regular CBD consumers preferred online shopping “because of its ease of use.” Meanwhile, newer consumers prefer “offline”—brick-and-mortar retail locations such as smoke shops, health stores, grocery stores or dispensaries where legal—when looking to buy “genuine, quality products.”