August 11, 2022
Valued at $4.9BN in 2021, the CBD market is one of the fastest growing industries in the world. It is forecasted to reach $47.22BN by 2028, driven by increasing demand for health and wellness products. This comes as more people recognise cannabidiol as legal and potentially beneficial to them. With new oils, balms, and edibles popping up on supermarket shelves every day, these figures aren’t surprising, though it is certainly becoming harder for brands to stand out.
August 8th marks National CBD Day: a day to spread awareness about cannabidiol and its uses. This year, we took the opportunity to dive deep into the online conversation around CBD to identify key trends and insights. Whether you’re about to launch your own line of CBD products, or just interested to know more about the current market, here’s what we found:
Japanese Interest Is High
A significant proportion of online mentions for CBD came from users in Japan, 94.5% of whom were in Tokyo. Despite their zero-tolerance towards drug crime, Japan has welcomed CBD due to its medicinal properties. In fact, it is predicted to become the second largest CBD market in Asia by 2024 after China. That said; tapping into this will require some jumping through hoops. In order to adhere to strict laws on cannabis, all CBD sold in Japan must contain 0.03% THC or less. As a result, most of the country’s products containing cannabidiol are made by Japanese companies, or those who manufacture specifically for this market. Interestingly, a 2022 report by GWI reveals more Japanese consumers believe they are more prone to anxiety when compared to the rest of the world. This indicates that mental health is driving much of the interest around CBD in Japan.
Giving Away To Get More
Due to the immaturity of the CBD market, many brands are taking to social media to ask consumers outright what they want. However, such an exchange of information requires some incentive. For a recent giveaway, SupremeCBD brand ambassador Anthony Fowler gave his 94.8K Twitter followers the chance to win a bottle of CBD gummies worth £35. All they had to do in return was retweet, follow, and most importantly, comment why they “need” it. As a result, users provided SupremeCBD with exactly what it needed to know. Interestingly, those who entered were willing to disclose more detailed or personal information, such as health and financial status. For example, one Twitter user simply responded, “Heard great things. Too poor to buy.”, while another writes, “I would love these for my husbands arthritis and also to calm his anxiety ahead of his hgv theory test”.
Fads and Friction
Though many believe CBD cures them, there is currently not enough evidence to actually prove this. That being said, research has shown that it may be effective for reducing certain types of pain and mental health disorders such as anxiety. This lack of uncertainty around CBD means that consumers are suspicious and on high alert. On July 21st, Brewdog CEO James Wyatt tweeted to ask his 99K followers their opinion on some mock-ups for ‘functional beers’. These included a caffeine-infused beer called ‘FOCUS’, a protein infused beer called ‘RECOVER’, and of course, a CBD infused beer labelled ‘CHILL’. Responses were largely negative, with one user writing:
“This is stupid. Alcohol is not good for your health?! I enjoy a drink every now and then but no one is thinking ‘gosh I’m so anxious, let me neck a CBD beer to calm my nerves’ or ‘what a great workout, let’s chug a protein IPA to get my macros in’. Christ.”
This tells us that while consumer interest in CBD is increasing, people are sensitive to fads. CBD-everything will make it harder for consumers to identify how it will benefit them, and trust the brand and its products. This also indicates that people do not intend to use CBD unless they actually need it. For some companies, it might be better to target alternative products instead.
The Key To CBD Success
The key to CBD success is awareness, and those who set out to educate their consumer now will see the largest reward as the industry continues to grow. Read our blog post on how to build an online community to find out how to do this. Market saturation does pose a risk, as many existing companies attempt to jump on the bandwagon. Unnecessary use of CBD in products could harm its reputation for doing good, and turn it into just another trend. Keeping track of online conversations around CBD and cannabidiol will show you exactly what is working, and identify any gaps in the market. If you’re ready to start boosting your business with the power of social listening, contact us.
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