CBD Products are Massive in Health and Wellness
What is the value of the CBD Market for Health and Wellness?
The global CBD market was valued at $3.5bn in 2021, a considerable increase from just one year earlier at $2.8bn in 2020. This fast-growing, pioneering sector is an exciting opportunity for brands in the health and wellness sector to capitalise on, with the ever-growing ways in which CBD can be integrated into products in personal care, food and drink, and supplements.
CBD, or to give it its full name, cannabidiol, is derived from hemp, and is the second most active ingredient in cannabis, and yet it does not give any type of ‘high’ and is not associated with dependence or addiction as it does not contain tetrahydrocannabinol (THC). Rather, CBD has been praised – by medical and scientific studies as well as myriad individuals worldwide – for its ability to help with anxiety, chronic pain, difficulty sleeping, the menopause, and other health and wellbeing conditions.
The value just keeps rising year on year!
Far away from the ‘old marijuana branding’ of green hash leaves and studenty images, today’s CBD products tie into the increased awareness and appreciation of holistic self-care, itself a $1.5 tn sector with a 5 – 10% predicted CAGR. This changing landscape brings colourful opportunities for the packaging and branding of CBD products for the health and wellness sector, which is varied in terms of target audience, demographic, and shelf appeal, not to mention the clear advantage of e-commerce ease for these customers.
Take the CBD-infused beauty products segment. Its incredible predicted growth of 32.9% CAGR is largely due to the strategically palatable branding that harnesses the slightly dangerous edge of the ‘old’ style marijuana yet is firmly in the legal – and efficacious – team alongside other premium lotions and creams. The design and packaging choices made by this sector is an interesting one to watch, with the changing landscape perhaps influenced by a more relaxed approach to the work/life balance.
Easily able to be added to lotions, tablets and drinks, CBD is most commonly extracted as a highly concentrated oil which can then be used in patches, topical applications, capsules, or added to liquids. The growth in the CBD market for health and wellbeing is seeing this on-trend yet well-established legalized ingredient pop up in all manner of consumer goods.
Fancy a bit of CBD in your coffee? Join the Club!
Another health and wellbeing sector that is embracing the CBD trend is ‘added value beverages’, also known as functional beverages. With collagen, caffeine, and protein all getting in on the act, on-the-go drinks with extra features are all enjoying a boost. For drinks with CBD, that boost comes as a welcome chance for a moment of calm in a busy day, or a shot of self-care with your morning coffee. Here, also, the branding and packaging opportunities are fun, fresh and functional, with brands embracing the thoroughly self-aware customer that wants to work hard, play hard, and rest hard.
Perhaps it’s fair to say that one of the early adopters of the CBD infused trend is the supplements segment, with CBD gummies enjoying a $1.6bn annual market and predicted growth of 12% CAGR. Often available in supermarkets alongside other long-established health supplements, CBD gummies have been quickly accepted and adopted in both the mainstream healthcare segment and those with a more holistic or even ‘alternative’ approach.
CBD users want to save the environment and world we live in!
The opportunities for using responsible packaging for all these growing CBD segments is clear; on-shelf differentiation is crucial, as is the visual appeal of a product being bought predominately online. There must certainly not be a disconnect of sustainability messaging when it comes to CBD infused products, as these consumers are far more likely to be in tune with the reduce, reuse, recycle mantra.
By working with a packaging partner like PONT that has long been invested both financially and emotionally in creating, developing, and producing responsible packaging from glass, rPET (recycled PET) and HDPE, brands that are already active in this segment, or those looking to expand into this exciting market, are more than welcome to discuss how their branding goals can be achieved with a packaging partner that understands the highs and lows of the CBD market.