Since stay-at-home orders were put in place at the start of the coronavirus pandemic, self-care has been top of mind for consumers, who are looking for ways to remain calm and relaxed while complying with social distancing measures.
Many are turning to CBD-based beauty and wellness products to cure their anxieties and get through the ongoing crisis. According to Google Trends, since mid-March keyword searches for phrases such as “best CBD for anxiety 2020” have gone up by 250 percent.
And the spike continues to accelerate.
But the interest in hemp-based products isn’t anything new. Demand for CBD-based products had been ramping up in the past couple of years with the pandemic only furthering the trend.
Modern Retail reports that by the year 2024, the CBD market is expected to be valued at $20 billion.
It is perhaps not surprising that national grocery retailers, such as Kroger, have begun selling cannabinoid products. Kroger began selling CBD products across all 1,000 of its stores in July, quickly becoming one of the biggest brick and mortar CBD sellers by footprint. The grocery store chain signed on Charlotte’s Web, The Yield Growth Corp., CV Sciences Inc. as well as Aurora Cannabis, among other several other big players in the space to grow its list of CBD brand offerings.
The CBD market has also encouraged a new wave, much like the wave DTC category wave back in 2010, where venture capitalists are looking to jump in on the opportunity to further invest in all-things-CBD.
Vice Ventures’ Founder Catharine Dockery, whose portfolio includes CBD-focused brands like Plant People and Recess, told Modern Retail that the category “continues to show really strong repeat numbers among existing customers.” In fact, Dockery dubbed the category to be “recession-proof.” And it just might be.
Eric Balshin, CEO of Yesterday Wellness, has seen continued growth in sales since its launch back in March, just when lockdown mandates were implemented. While there has been a decline in sales from its physical stores, Balshin notes that the DTC side of the business has been strong.
According to a June survey conducted by Brightfield, nearly 40 percent of the 5,000 consumers who used CBD said that their consumption has gone up.
When the pandemic eventually recedes, the overall consumption per consumer will likely go down, but it is safe to say that more consumers will be using CBD-based products. As such, brands and retailers that are currently struggling should take note. The ability to respond quickly, pivot strategies and offer products that are resonating with their customers at the current moment will be the ones to survive and succeed long after the pandemic.