Exploring the CBD Edibles Market
Overview of the CBD Edibles Market in 2021
Both the data and understanding of the CBD market are a bit sketchy. Some estimate that the CBD market in 2021 will be around 2.8 billion, while others estimate it at 3.5 billion USD. Again, it is because perfect data is unavailable, and thus many reports are based on expert estimates.
Things with CBD edibles are even more complex. It is simply because the definition of CBD edibles varies significantly from place to place. Most experts would consider CBD foods or chewable as CBD edibles. However, others may also consider CBD oil and capsules as edibles too.
However, it would be a good idea to keep CBD edibles separate from traditional oral CBD formulations like CBD oil or capsules. Thus, it would be right to say that CBD edibles include gummies, chocolates, brownies, honey, and other CBD food products.
CBD Edibles Market Size & Growth
It would be difficult to say about the market size of an industry that is still poorly regulated and where many manufacturers do not share their sales data. Nonetheless, it would be correct to say that the market size of CBD edibles is at least 30% or more of the total CBD market.
Thus, it may be correct to say that the CBD edibles market is at about 1 billion USD or even a bit more. Moreover, as per conservative estimates, it will continue to grow at the CAGR of 24.30% and is expected to reach or even cross the 5 billion mark by 2027.
It appears that these estimates do not include CBD gummies. It is because CBD gummies alone have greater sales than perhaps all other CBD edibles combined. Thus, if CBD gummies are taken into consideration, it would be a much bigger segment. That is why some experts predict that CBD gummies are a big thing, and they alone may account for as much as 13 billion USD plus sales by 2028 and is growing at the CAGR of 30.7%.
It does not matter what figures we consider. It is evident that the market is bound to grow at a CAGR of 24 to 30%, which is quite a fantastic growth rate in comparison to other industries.
CBD Edibles Industry Trends
When it comes to CBD, gummies rule, they remain the most popular form of CBD products. In fact, gummies are generally becoming quite popular in the health supplements market. In some cases, they are even overtaking traditional preparations like oils, tinctures, and capsules. It could be because consuming gummies is comfortable, and it does not feel like taking medications, and they also come in many flavours.
Next comes the CBD infused food items like chocolates, brownies, and even other edibles. However, they have been slow to pick up due to multiple challenges. Because, generally, such edibles have a shorter product life, are bulkier, and involve logistics challenges. Further, they also have specific regulatory challenges. As the CBD market becomes more regulated, getting regulatory approval for CBD-infused food products may become challenging.
Another exciting segment to watch out for is CBD infused beverages. These are not indeed edibles, but some would include them in the segment. It is a niche segment, but its popularity is growing. It may grow considerably, as visible from the market growth of various other health drinks.
Another exciting trend to watch for is the acceptability of CBD by young and active adults. Lots of sales in CBD indeed come from adults aged 30 to 65 years, as they buy CBD for specific health benefits. However, a greater number of adults below the age of 30 are using CBD regularly. These are not individuals who are essentially living with some disease conditions. Instead, they buy CBD edibles to stay active, focused and energized. Many of these young adults may buy CBD edibles to overcome sports-related fatigue or to improve mood.
Essentia Pura’s Analysis of the CBD Edibles Market
Essentia Pura’s take on the CBD edibles market is that although this particular segment is bound to grow, it has some specific challenges. There is a good probability that sales of edibles may grow greater than other CBD types. This particular segment also has lower competition in comparison to CBD oils and caps. However, its diversification would depend on regulatory changes in the market. It may be challenging to get regulatory approval for products like CBD infused cookies or honey. In addition, CBD edibles’ legality remains an area of concern.
The safest bet at present is to expand in the gummies market. This is because CBD gummy bears are relatively easy to manufacture. They also have a dedicated and huge consumer base. Therefore, gummies do not pose much regulatory challenge. Moreover, studies show that 90% of the gummies market is of low CBD content gummies. Thus, 1 mg to 20 mg of CBD per gummy is what most consumers are looking for.
Although, it may be a good idea to experiment with some new offerings, too. Thus, one may increase brand value by introducing CBD chocolates, honey, candies, and similar other products.
Another point worth noticing is the changes in points of sales of CBD products. Although the shift from brick-and-mortar stores to online platforms is an old trend, covid-19 epidemics accelerated things. Even though in 2020, offline stores accounted for about half of all CBD sales. However, from 2021 and onwards, most of the sales would come from online sales and promotion.
CBD edibles in different regions
Finally, regarding the regions to focus on. Although data may show considerable and equal sales of CBD globally, most sales come from North America, UK, and the EU. Other regions Latin America, the Middle East, and South Asia are less likely to pick up any time soon. However, Asia Pacific is a region to keep an eye on, as it has a considerable middle-income population and tradition of using natural remedies.
One may produce CBD edibles using water soluble CBD for better bioavailability. Further, water soluble CBD just mixes quite well with various edibles. Else, one may consider buying CBD edibles wholesale and repacking them.
Opportunities for Businesses Expanding into CBD Edible Products
In CBD edibles market is dominated by CBD gummies. It is a segment that is also projected to grow considerably in the next five to ten years. Gummies are relatively easy to produce. Thus, those selling CBD oil may consider making gummies. Even new manufacturers may start their business with gummies.
It is quite possible that gummies may overtake CBD oil, tinctures, and capsules sales in certain age groups and specific locations. Gummies are especially an attractive product offer for young adults, busy professionals.
Additionally, one may consider certain niche segments like edibles for vegans or those on the keto diet.
The good thing about CBD edibles is that consumers are not expecting a high concentration of CBD in these products. It is because they are not consuming these products to treat some medication conditions. Instead, they use CBD to stay healthy, focused, energized, and yet calm.
Which CBD edibles do you think the market is missing? Share your thoughts with us!