The number of Americans reporting cannabidiol (CBD) use is up 3% since March 2020, likely due to COVID-19, according to the newly released 2020 National Study of CBD Use by ad agency Bigeye. And a poll of users across the U.S. and Puerto Rico reveals that many are new to the substance — almost three-quarters have been using CBD products for two years or less.
“The CBD market is exploding, and it’s not just one particular demographic or age group adopting it or regularly spending money on CBD products. The variety of issues that CBD can be used for, along with the wide range of products available, make it a popular choice across the board,” says Adrian Tennant, VP of insights at Bigeye and leader of the research team. “While we’re finding that most users are learning about CBD from a common source — friends and family — their reasons for purchasing it differ depending on age, educational level, and income. The findings from this report will be vital for businesses to understand consumer behavior in this new marketplace.”
The most dominant indications for CBD use are for anxiety (38%), stress (36%), sleep (36%), and relaxation (34%), according to the study. CBD is being widely used to treat medical conditions, including arthritis pain, and is being highlighted as an ingredient in a growing range of general consumer categories. CBD is used in beauty products such as facials and lotions, food and beverages, sports supplements, pillow mists, and even apparel. Around 15% of adults in the U.S. already use CBD products, and consumers’ receptivity to its use has been growing rapidly since the 2018 Farm Bill legalized industrial hemp production.
“There’s huge potential to work with brands in this space, yet a majority of CBD sales are occurring in unmeasured channels, leading to a shortage of data,” says Justin Ramb, Bigeye president and CEO. “This research allows us to tap into new trends and understand the consumer makeup of who is interested in CBD products and their purchase habits, especially in light of the uptick in use we’re seeing due to COVID-19.”
Over two-thirds of CBD users spend up to $99 monthly on products containing CBD, and over a quarter spend between $100 and $199 monthly, the study finds.
Previous reports note that CBD sales in the U.S. skyrocketed to $5 billion in 2019 — a 706% increase over 2018 — and are projected to reach $24 billion by 2023, according to a report by Brightfield Group.