CBD - Purchase Drivers & Factors

Goals

To obtain an in-depth understanding of the factors that influence the purchase decisions of consumers seeking CBD based products covering how they discover new products, what drives them to make a switch to new CBD brands, and their preferred channel of purchase.

Early Findings

  • The primary consumers of CBD based products are millennials between the ages of 21 and 35 and baby boomers who are 56 years of age and older.
  • The majority of CBD based products are used in easing anxiety (44%), managing depression (29%), treating chronic muscle pain (23%), and easing chronic insomnia (21%).
  • Overall, the consumption of CBD based products is equally shared between male and female users, however, women consume CBD products slightly more than men.
  • According to a recent report by CNEWS, consumers of CBD currently buy products based on their needs and availability, and 43 percent of consumers are searching for easier access to CBD products. The report went on to state that 52 percent of consumers consider the product form factor before purchase.
  • Prior to 2018 and the passage of the Farm Bill, online ordering was the primary distribution channel for the CBD market. In 2017, about 66 percent of all CBD sales were processed through the internet, but all that changed with the passage of the Farm Bill in 2018. Large pharmacy, retail, and grocery chains are expected to garner 57 percent of market revenues in 2019 due to their scalability and mainstream familiarity.

Proposed next steps:

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