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Brightfield Releases New CBD Report

2021-05-26


Cannabis and CBD consumer data analytics company, The Brightfield Group, is announcing the release of their newest report analyzing the CBD market in 2020 and laying out their predictions for 2021. Some key information from the report includes:


  • U.S. hemp-derived CBD sales are expected to reach $5.3 in 2021, up 15% from 2020’s $4.6 billion
  • By 2026, American CBD sales will reach $16 billion, driven by accelerated growth of ingestible products
  • Drinks and gummies are expected to be the fastest growing product types in 2021, with 71% and 44% value growth, respectively.
  • Tinctures (tincture bottle)will retain the highest share of the market in 2021, holding 18% of retail sales
  • Online sales will surpass $2 billion in 2021, accounting for 38% of the total American CBD market
The report also highlights the coronavirus pandemic’s impact on the American CBD market, the FDA’s stance on regulating CBD in 2021, and various other pieces of information about the rapidly expanding market. The Brightfield Group predicts the hemp-derived CBD market will grow at a compound annual growth rate (CAGR) of 25% from 2021 to 2026, with growth driven by:

  • New consumers
  • Expanding retail into new channels
  • A regulatory framework from the FDA, accelerating the growth rate of ingestibles
  • New players to bring innovation to the market
Price and Potency Changes
According to aggregate data from Hemp Benchmarks, the Brightfield Group’s report says the aggregate assessed price for hemp CBD biomass declined by a whopping 82% from April 2019 to May 2020, taking the price from $38 a pound to just $7 per pound.

While the coronavirus pandemic surely played a part in this, you have to wonder if the newly-established American CBD industry in 2019 played a role in the price per pound during that time. It was a hot market, performing beautifully and faster than anticipated, thanks to the federal government removing hemp from the Schedule I Substances list in 2018. The hemp space in 2019 is a tough year to compete with, and throw a global pandemic on top just one year later: you might see some lower hemp prices than average.

  • 30 ML tinctures saw, on average, a 33% potency increase, going from 450 to 600 milligrams of CBD. The price dropped from $25 to $20. Packaging covers plastic bottles, glass bottles, mylar bags and so on
  • 120 ML tinctures saw, on average, a 33% potency increase, going from 1800 to 2400 milligrams of CBD. The price dropped from $70 to $60.
Innovation
In typical cannabis industry fashion, the CBD market is ahead of innovation and constantly thinking of new ways to keep customers satisfied. However, CBD brands are going beyond wacky flavors and new designs: the companies are focusing on functional ingredients that will make a difference for the consumer.

Immunity is a huge focus for the CBD space in 2021, and 2020 saw the same thing. Ingredients like elderberry, echinacea, Vitamin C, and zinc are popular choices for consumers. Minor cannabinoids like CBG and CBN are still hot for 2021, tapping into the entourage effect full-spectrum cannabis products provide us.

Distribution Channels

Online CBD sales are expected to reach $2.02 billion in 2021, accounting for 38% of the total market. This is down slightly from 42% in 2020, but it’s a good sign that things might be returning to the beginning of normalcy as people return to in-person retail shopping. Curbside and contactless options are still available in many places, which might contribute to this number. E-commerce will dominate the distribution market in 2021, with pharmacy following behind it, then CBD speciality retailers, natural food stores, pet stores, and more.


 
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