We have compiled the latest CBD statistics all in one place. CBD: this three-letter acronym has revolutionized the health and skincare space…and it isn’t slowing down. Cannabidiol became federally legal in 2018, and since then a great deal has changed. More and more people are experimenting with CBD and learning about the potential it has for health benefits. Research teams continue to study the link of CBD’s effectiveness on health conditions. Simultaneously, CBD brands are creating innovative products that satisfy every customer’s needs. Now that cannabidiol has been in the game for two years, in 2020 we can start to see industry trends and consumer behavior patterns. We can also see the strides taken in research and product development, and think about what the future brings for the evolution of this market.
cbd statistics – Revenue Trends in 2020 and Beyond
We’ve said that the market has exploded, but let’s talk industry facts. According to research from Brightfield Group, the United States CBD market value was just over $4 billion in 2019. Of this spend, 44% of regular CBD users spend $20-$80 per month on CBD products. 13% spend more than $160 per month. Additionally, according to New Frontier Data, CBD purchasers aged 35-54 are most likely (21%) of any group to spend over $100 per month on CBD.
In the United States, Colorado has stood out as a revolutionary in this market. According to CNBC, Colorado has been breaking records in hemp and marijuana sales since its legalization in 2014. Colorado also has the highest number of acres licensed for hemp production along with Kentucky. According to Hemp Industry Daily, at the end of 2019 Colorado state had roughly 50,000 acres of hemp — wow! Another fun fact about this booming industry is that it is one of the few industries led by female leaders. According to Green Entrepreneur, women are founders or general managers of over 75% of CBD brands.
Taking these numbers into consideration, Cowen & Co, an investment bank in New York, recently released a study on the CBD market and polled 2,500 people. Cowen projected that the revenue of this market will reach an estimated $16 billion by 2025. This number is a drastic jump from 2018 when the range reached a maximum of $2 billion. This also bears in mind that although CBD is federally legal, there are varying laws from state to state in the United States. If in the next few years stricter state laws subside, then there’s potential for even further significant revenue growth in the market. And this growth extends well beyond the United States. In February 2020, Health Europa predicted that Europe’s CBD market will grow by 400% over the next four years.
The average CBD Consumer in 2020
We’ve done some digging to discover the average age of the CBD consumer in 2020. The data that we’ve found from two different sources is interesting. According to Cowen & Co., the use of CBD was found to be highest in the age group of 18-34 years. Additionally, in a poll by Gallup, they broke the user demographics into four age brackets, 18-29, 30-49, 50-64, and 65+. According to this poll, they discovered that of all age groups the 18-29 age bracket is most likely to consistently use CBD products which align with Cowen’s poll as well. It seems that this age bracket can easily incorporate CBD into their routine and stick to it, while the older demographics may not fully commit.
This poll also asked participants if they’ve tried CBD. Of these age brackets, 40% of people ages 18-29 had tried CBD while 15% of people 60 and older had tried CBD. In Cowen & Co.’s study, they had found that 7% of the 2,500 polled said they’ve used CBD, which was a higher figure than they had expected.
The 18-29 age bracket is huge in the CBD space. According to Linkage, when millennials are buying skincare products, 18% of them are already making sure to buy products that contain CBD. This group is more likely to immerse themselves in this routine and support CBD brands.
Another interesting finding is that women are more adventurous when it comes to trying CBD compared to men. It seems that women are more likely to enter the space as a newcomer over male consumers. A potential reason could be that women are often more experimental with beauty and wellness products.
THE latest cbd statistics – Why are consumers using CBD?
There are countless reasons that people seek CBD. From the women suffering from arthritis to a veteran coping with PTSD, and even furry friends that need relief in a thunderstorm — each person has their own unique needs. Many consumers also turn to cannabidiol to promote overall health and wellness. However, some of the most popular reasons consumers use CBD are for pain relief, inflammation, anxiety, and more. In fact, according to a Single Care study, “of the Americans who use CBD, the most common uses are for pain relief (64%), anxiety (49%), and insomnia (42%).” Additionally, according to Consumer Reports, “of those who use CBD, 22% said it helped them supplement or replace prescription or over-the-counter drugs.” Additionally, according to Consumer Reports, 32% of millennials use CBD to reduce stress and anxiety, while 42% of baby boomer use it for joint pain.
A similar study by Brightfield, shows a breakdown of the top conditions users relieve with CBD:
|Joint Pain and Inflammation||52%|
|Muscle Tension or Strain||35%|
|Migraines or Tension Headaches||34%|
|Severe or Chronic Pain||31%|
Over the past few years, research has been conducted on CBD linked with each of these conditions. Here are the most recent findings:
- Pain Relief – Oftentimes chronic pain can be due to inflammation. In the most recent study on CBD and inflammation (which was conducted in 2010), it was discovered that it is an anti-inflammatory and therefore can significantly help with this discomfort. It also works with the body’s Endocannabinoid System to keep it in balance, which in turn can promote better functioning systems within the body.
- Anxiety and Insomnia – In the latest study that links CBD and insomnia, it was discovered that CBD can help those that struggle with anxiety to help fall and stay asleep.
It’s interesting to see that pain relief, anxiety, and insomnia are the three most common uses of CBD. Within the category of “pain relief,” there is a multitude of different conditions — anywhere from arthritis to sciatica to IBS and more.
How does the average consumer take CBD?
We know a little bit more about the “why” of the average CBD consumer in 2020. How about the “how?” Let’s take a look at the CBD statistics. As we know, there are countless different methods to ingest cannabidiol. To name a few, these can include oils and tinctures, edibles, vape devices, flower, topicals, and more. According to this infographic from LoudCloud Health, the top used CBD-based products are as follows:
- Oil and Tinctures – 44% of consumers
- Topicals – 26% of consumers
- Capsules – 22% of consumers
- Infused Beverages – 19% of consumers
CBD oils and tinctures aren’t a surprise to be the top pick method of ingesting CBD. Many prefer taking CBD sublingually (under the tongue) because it immediately can take effect. The same can be said for topicals. Creams and lotions can be directly applied to the affected external area and provide relief for inflammation. Capsules can be worked into a daily routine and are easily transportable, it would feel no different than making sure you’re taking any other type of pill. CBD infused beverages are becoming increasingly popular as brands continue to create new delicious drinks that can also be positioned as wellness brands such as coffee, tea, juice, water, and more.
A study from Consumer Reports also dove into where CBD users are getting their products. According to the data, 40% of customers purchase CBD from a dispensary, 34% from a retail store, 27% from an online retailer, and 12% from another source.
Fast CBD Facts
We think it would be amiss in our 2020 update on the latest CBD statistics, trends and figures to not address some of the most popular fast facts of CBD.
First and foremost, CBD will not get you high. Cannabidiol (CBD) is one of the hundred cannabinoids found in the cannabis plant. The other most common cannabinoid is delta-9-THC, which is in marijuana and gives a euphoric “high.” However, this is not in cannabidiol and there will not be psychoactive effects. Many are often scared to try CBD because they do not want to experience paranoia or an out of body experience that marijuana can sometimes cause. However, consumers can feel comfortable knowing that this will not happen. It also stresses the importance of buying CBD products that are high-quality from a trusted source. Additionally, according to the World Health Organization, you cannot get addicted to CBD as it does not have any addictive features, which is always a reassurance for consumers when they are seeking new forms of treatment.
Secondly, CBD works naturally with the human body. We’ve alluded earlier that cannabidiol works alongside the body’s Endocannabinoid System (ECS). The ECS keeps all of the human body’s main systems functioning healthily. When it gets thrown out of synch due to natural causes such as diet change or lack of sleep, it will lead to symptoms and signs that are because this isn’t in its target rhythm. CBD can help with that. By adding more cannabinoids into the body’s ECS, it can help to stabilize and get things back on track. CBD is just another way to add more cannabinoids into your system and therefore potentially alleviate symptoms. You can learn more about this in our Education Center. You can also read about the Top Myths about CBD!
Industry Trends and Predictions
With so much room to grow, many have begun to speculate on the future of the market. What trends will take over? What predictions can we make? Well, there are some things that we can predict based on the revenue trends that are projected over the next five years. If sales continue to push, the demand will soon follow. Cannabidiol has the potential to expand globally. Additionally, while we will continue to see more and more brands try to enter the arena, we very well could also see the smaller retailers getting acquired by industry leaders.
Another prediction is that there will be more knowledge regarding it’s potential benefits. As cannabidiol continues to stay in the health and skincare markets, research teams will continue to find more and more on how it may be able to help consumers. This is an exciting possibility that we look forward to seeing in the future.
CBD STATISTICS – Conclusion
While there is still an abundant amount of information to uncover, the CBD statistics we have covered make us excited to be able to help consumers and be a part of this space. While a great deal of cannabidiol production happens in Colorado, it is only expanding further and further across the country. And with sales estimated to reach $16 billion in 2025, it is only a matter of time before we see other states join in this large hemp productions. With the knowledge presented in this article, it appears that the most common CBD consumer in 2020 is someone who is 18-25 that is looking for relief from pain, anxiety, or insomnia, and prefers to take cannabidiol with an oil or tincture.
What do you think? Does this data resonate with you? We’d love to hear more about your experience or predictions for the industry. Drop us a note in the comments and let us know!
ABOUT THE AUTHOR, AMANDA RUSSELL
Amanda Russell, a Marketing Postgraduate, is one of our in-house bloggers residing on the East Coast. She is devoted to staying immersed in the latest CBD trends and providing educational insight for our fellow Green Dragon CBD community. Connect with her on LinkedIn or read other posts by Amanda.