The CBD (cannabidiol) industry has been on a rapid upward trajectory since the legalization of hemp-derived CBD in 2018. With the global market reaching $9.4 billion in 2023 and projections estimating it will hit $31.85 billion by 2027, it’s clear that CBD is more than just a passing trend. As we look ahead to 2024, several key trends are set to shape the industry, offering insights for both businesses and consumers.
1. Emphasis on Quality and Transparency
Consumers are becoming increasingly discerning about the CBD products they purchase. They demand transparency in labeling, third-party testing, and adherence to high-quality standards. This shift is partly driven by evolving regulatory frameworks, with the FDA signaling the need for updated rules around CBD products. For retailers, this trend offers an opportunity to differentiate themselves by prioritizing quality and clear communication about product contents and testing.
2. Growing Focus on Consumer Education
Despite the growing popularity of CBD, there is still a significant knowledge gap among consumers. Many are unfamiliar with the effects of CBD and other cannabinoids, making education a critical component of the sales process. Retailers who prioritize educating their customers—whether through in-store workshops, informative packaging, or online resources—are likely to build stronger relationships and trust with their audience.
3. CBD for Wellness
CBD’s reputation as a wellness product continues to drive consumer interest. Whether for stress relief, relaxation, or potential therapeutic benefits, CBD is becoming a staple in wellness routines. As more people turn to natural remedies, the demand for CBD products is expected to remain strong.
4. CBD for Pets: The New Frontier of the Pet Market
The pet subsegment of the CBD market is expanding steadily, more pet owners are looking to CBD for pets’ health purposes. CBD product sales to the pet market for animals are projected to be a large segment of the total by 2025, all of which will be hemp-based. This trend constitutes a good business prospect for retailers new to the market to increase their product portfolios to products that are friendly to pets, which focus on organic and natural ingredients.
5. Rise of CBD Beverages
CBD drinks are gaining the attention of clients who want to add CBD into their everyday lifestyle in the simplest and less invasive manner is in drinks. In 2023, this segment’s sales were up by more than 36%, and as such, it should grow in 2024 as well. It is thus important for retailers who sell CBD beverages, to consider offering the general public the diverse products that can be made from CBD since there is always a ready market for new products by those who wish to try new ways of consuming CBD.
6. Other Cannabinoids Gaining Attention
Although CBD is rather famous of all cannabinoids, there are more of them, for instance, CBG (cannabigerol) and CBN (cannabinol) that have more favorable characteristics. It became apparent that with consumers’ interest extending beyond CBD, those retailers have the chance to properly present these other ‘lesser’ cannabinoids to their potential consumers and explain to them the possible uses or effects.
7. Omnichannel Retailing: The Guarantee of Success
Today, CBD comes with many competitors, hence the need to have both an online and offline appearance. While the establishment of the physical stores lets the buyers be educated face to face and avail the touch and feel facility, an e-commerce facility provides the comfort that most of the consumers look for once they have made the first purchase. The combination of the two might assist retailers appeal to more clients and bond with the current ones.
Source: Forbes
Thus, the market for CBD shows potential in the further growth in the year 2024 taking into account the changing trends and consumers’ demands. The retailers who would keep abreast with these trends—through focusing on quality, customer sensibility and product diversification, are most likely going to prevail in this competitive fast-changing market. For the new players in the CBD industry, it is important to know these trends, and for the traditional retails, it is also crucial to increase their business in the industry.