Few products grab the attention of the world like CBD has done. Cannabidiol (CBD) is probably the most discussed cannabinoid because of its surge in popularity and demand. The cannabis industry is huge, but CBD has isolated itself and forged an industry of its own within a short time.
With its immense therapeutic potential, CBD has stolen the show and sits comfortably at the top of the cannabis industry. Such a sudden increase in demand means good business. As a result, there is a surge in demand for CBD marketing. If you are a vendor, you should get high-quality CBD backlinks to help your website generate organic traffic that you can turn into sales.
But what is the future of the CBD market? Here is a look at market trends and some tips to help you market your business.
CBD Market Trends
Increasing Legalization
The cannabis industry is enjoying unprecedented growth. With the increasing legalization globally, more states are expected to decriminalize cannabis products, not legalize some products like CBD.
The federal Farm Bill 2018 opened new doors for cannabis products, clearing legal confusion surrounding the cultivation and sale of hemp products. The law now makes it legal to farm and sell hemp products with tetrahydrocannabinol (THC) concentrations of not more than 0.3%. What this means is that THC is illegal while other hemp products, including CBD, are legal.
The legalization of hemp now means that the federal government can fund research on hemp, which will boost medicinal cannabis research.
Consumer Trends
With increased research on the benefits of CBD, more consumers are taking up CBD consumption. Market forecasts even estimate that the CBD market alone will soon surpass the entire cannabis industry. Of course, this data refers to the legal cannabis industry.
The CBD market is growing rapidly. In 2018, at the enactment of the Farm Bill, total CBD sales were estimated at $500 million. This value is expected to jump to at least $1.8 billion annually by 2022. The United States marijuana market is valued at about billion, and CBD seems to be following in these footsteps.
There is a massive demand for alternative medicine, and many people are turning to CBD, particularly to treat pain, depression, and anxiety. With consumers confident that CBD is not psychoactive and is safe to use, the demand for CBD is increasingly on the rise.
With the number of people suffering from chronic pain, the demand for CBD for pain relief has grown suddenly. Most consumers have arthritis, multiple sclerosis, migraines, muscle spasms, lupus, and even cancer. Some of these users find conventional pain medications ineffective or cannot bear their side effects, and they need alternative treatment.
Strategies for Your Business
There is a huge demand for CBD; there is no doubt about that. But the availability of demand does not necessarily mean every CBD vendor is raking in huge profits. As a result, some are closing shops, while others expand to other territories due to rising demand for their products.
Is your business among those struggling to attract buyers? If so, these marketing strategies could turn things around and see you become profitable if you implement them appropriately:
Brand Positioning
CBD has therapeutic properties that can benefit several people with different conditions. However, the FDA has not approved CBD for the treatment of any condition. This means you cannot label or sell CBD as a conventional treatment. Instead, most vendors sell their products as alternative medicine or health supplements.
But how do you position your brand with a product that plays so many roles? For example, do you focus on depression, pain, or anxiety? Another product line is pet food and food supplements that boost mood and energize the body, ideal for workout enthusiasts. Deciding where to focus can be difficult because all these niches have huge potential.
Do you want to go all-in, or do you want a particular niche? Of course, a brand fit is essential, but it can also limit you. For example, if you look at brands that control the most significant CBD market share, you will realize that they don’t have a niche.
Target the Right Audience
CBD is federally legal, but it’s still illegal in some states. You are unlikely to make sales if you target such states because you cannot ship products to those states. It would be a waste of resources even to market your products in those localities.
Most CBD users buy the product for pain relief. But the CBD pain market is overcrowded, and the competition is high. If you can flex your muscles and wrestle your way into this market, then it would be worth it. However, if you are a small brand with little resources to spare, it would be advisable to consider another audience with untapped potential.
Conclusion
The CBD market is still in its infancy, but surprisingly, it is heavily crowded. Therefore, you need a radical strategy to penetrate the market and create a viable brand identity. This is not easy if you have limited resources.
The advantage of the CBD market is that its vast, and new opportunities are bound to arise. Therefore, you can follow market trends and identify new opportunities to invest in early before the market is crowded.
References
- https://www.statista.com/statistics/933384/legal-cannabis-sales-forecast-us/
- https://www.medicalnewstoday.com/articles/319475
