Consumer interest in products containing CBD is on the rise, according to New Frontier Data, a global cannabis research firm.
A pair of recent white papers published by New Frontier help to illustrate the opportunity in the growing CBD market, which could be worth $20 billion by 2024, according to Colorado-based cannabis research agency BDSA.
Earlier this year, New Frontier teamed up with popular payments firm Square, Inc., to produce what it calls “the largest U.S. CBD consumers survey to date.” That effort — which helped New Frontier create a robust report outlining various consumer archetypes — found that 86% of U.S. consumers have heard of CBD.
Meanwhile, 73% of Americans have had a conversation about CBD and 61% believe that CBD could have medical benefits. According to New Frontier, 41% of CBD users are taking the cannabinoid for pain, while 33% are using it to unwind. Another 18% are consuming CBD for “general wellness.”
Despite the global acceptance — or at least acknowledgment of CBD, only 18% of Americans have consumed the increasingly popular cannabinoid. That’s good news for smoke shop retailers looking to bring in new customers — about 73 million people anticipate purchasing a product containing CBD before the end of the year.
There are five main groups of CBD users, according to New Frontier.
Integrative and Consistent: Comprising roughly 34% of CBD consumers, this group represents moderate spenders who are experienced CBD users and believe in its benefits.
Receptive and Reserved: Typically not connected with other CBD users, it is a cohort of believers in its benefits, but who typically spend little on CBD. They make up around 24% of CBD consumers.
Ambivalent and Experimental: Consumers who fall into this archetype lack enthusiasm about CBD, and may likely have quit using it altogether. As a group, they account for approximately 23% of CBD users.
Skeptical and Limited: Accounting for 13% of the consumer maker, these moderate spends are skeptical about some of the purported benefits of CBD, but they nonetheless use CBD to help treat conditions like pain.
Exuberant and Intensive: Highly enthusiastic consumers who frequently use CBD and spend more on average than do their counterparts, the market’s most welcome archetype makes up about 6% of the market.