In this article, we explore three popular trends in the cannabis industry that are more than just fads and what we can learn from their success.
The cannabis industry is constantly growing and expanding more rapidly than any other industry before it. From April 2014 to 2018 alone, the market grew by approximately 890%. Regulations for the industry are constantly changing, and methods of consumption, the geography of the cannabis market, and consumer trends are in constant flux. Though the landscape of the cannabis world is ever-changing, here are three industry trends that those in the business should pay close attention to.
1. Delivery boxes and subscription services will dominate the market. Until recently, the term “cannabis subscription box” was a misnomer. The boxes would usually just contain smoking paraphernalia or CBD products, but since cannabis is rapidly being legalized across the country, some merchants are sending out boxes with actual cannabis products inside. Subscription cannabis boxes have evolved into curated, craft collections that are expertly designed and tailored to fit individual needs of the consumer. Companies such as Flowsent, Nugg Club, MyJane,and countless others have based the foundations of their business on the subscription box model. This is an industry trend that is definitely here for the long haul.
2. Cannabis beauty products will have a rise in popularity. At the start of 2019, roughly 20 percent of beauty consumers stated that they were using cannabis-based beauty products, according to AmericanSpa.com. However, as of May 2019, that number has increased to approximately 40 percent. Additionally, 64 percent of consumers believe that cannabis beauty is more than just a fad. According to consumers, the biggest benefits of cannabis beauty products include pain relief, soothing effects, reduction of inflammation, therapeutic benefits, and treatment of anxiety disorders. The top five beauty brands currently delving into the cannabis beauty industry that consumers are resonating with are Herbivore, Hempz, Milk Makeup, Cannuka, and Kiehl’s. Clearly, cannabis beauty is no longer a fringe trend, as brands are beginning to normalize cannabis ingredients and build brand awareness around these products.
3. The CBD market, which has seen massive growth over the past couple of years, will only continue to expand. From gummies to tinctures to various other health and wellness related products, CBD has taken the industry by storm and will only continue to do so in the coming years. According to the CBD sales statistics for 2019, the US product sales for CBD totaled to about $5 billion. The latest Brightfield report states that sales of CBD products will amount to around $23.7 billion by 2023. With a massive growth rate of over 140%, the CBD market will not be going away anytime soon. This is largely due to the 2018 passage of the Farm Bill, which legalized hemp farming on a national scale. A survey on CBD user demographics shows that 40% of Americans are interested in trying CBD, and that the demand for employees in the CBD industry rose by 76% from 2019 to 2020. This industry is only gaining traction and is projected to surpass traditional cannabis sales by 2022.
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