Cannabidiol (CBD) products have seen a sharp increase in their popularity over the last decade, with the industry expected to be worth a staggering $20 billion within the next two years.
Because of the rise in popularity, many brands and manufacturers have picked up on this, and this has caused the industry landscape today to evolve rapidly. In this article, we’ll go over these changes and identify four notable trends that you may want to know this 2020.
1. Increased need for certification
When it comes to CBD products, one measure of quality is the Certificate of Analysis. This document is provided by a third-party agent, and through testing, indicates the amount and type of CBD that is present in a product.
Now, with more and more players entering the market, customers tend to be more discerning and demand to see more certification from who they buy CBD products from. This means that businesses have to adapt to the changing customer behavior, and you can expect to see more forms of quality assurance prevalent in the market as time passes by.
2. More brand-owned supply chains
A new trend that will begin to dominate the CBD market will involve well-established brands getting involved in other parts of their supply chain. This means that product manufacturers will start to invest in their own hemp farming methods to streamline their supply chain. Conversely, you can also expect bigger hemp farms to start launching their own CBD product lines.
3. Greater demand for CBD Flower
CBD tinctures and powders have seen a rise in popularity in recent years, but 2020 will be the year that CBD Flower, commonly known as hemp buds, begins to dominate the market. This is mainly due to its convenience factor and a more accessible price point. Additionally, consumers can also expect popular brands to expand their product lines and offer other ways to enjoy the benefits of CBD consumption.
4. Stricter regulations
Due to the ever-increasing popularity of CBD use, it’s only a matter of time until the Food and Drug Administration (FDA) takes notice and gets involved. This year will mark the beginning of tighter limits on what companies can say about their CBD and hemp products, so expect to see more factual and evidence-based marketing methods in the industry.
What these mean for the industry
These trends could mean that bigger CBD brands that have access to plenty of resources will enjoy greater success in the near future. With customers now requiring more from their suppliers, and the government soon to implement more checks and balances in marketing material, businesses in every part of the CBD and hemp supply chain will have to invest more and find creative solutions to meet these demands. This will also mean that smaller players might struggle to cope with these changes.
For the consumer, these changes will prove to be mostly positive and should make higher-quality CBD and hemp products more readily available on shelves. It could also signify a shift towards a more science-based analysis of these products, which means getting exposed to fewer companies that may have just joined in on the CBD bandwagon.