Changes in Hemp-CBD and CPG Industries according to Nielsen in 2020
The CBD market has changed significantly over the past year. The development of this industry is due to the increased interest in products containing cannabinoids. According to forecasts for 2020, cash flow may grow to $ 2.75 billion, despite changes in the CBD legislation, according to Nielsen.
The company’s specialists presented several forecasts.
1. Increased awareness of cannabidiol-containing products and preparations is expected. According to a Nielsen Q4 Health Tracking study, 70% of doctors discuss the possibility of using drugs that include CBD with their patients. Still, not everyone is aware of a hemp legal basis.
According to Rich Maturo, vice president of Hemp Practice at Nielsen, healthcare providers can significantly advance the CBD industry because people trust them.
2. Nielsen predicts CBD products frequently range between four and ten times the retail price of CPG products used for comparable needs. The desire of manufacturers of CBD products to be competitive in the market will lead to an increase in hemp production and the emergence of new hemp farmers.
3. Over the next ten years after FDA approval, the number of cannabinoids containing everyday products may increase by 250-375% per year. According to Nielsen experts, drinks containing CBD will be most popular.
4. Products for animals, which content CBD, are also waiting for change. The study showed, that 37% of owners are going to give their pet vitamins containing CBD. However, this market needs additional regulation to clearly distinguish products for humans and animals.
5. The struggle between retail stores CPG and the online industry will be tightened. According to the survey, new consumers of CBD products that are going to buy them at a retail store will increase by two times, and the number of drug buyers in pharmacies will increase by 3.5 times.
According to Maruto, manufacturers should not ignore the CBD market, as it will develop. Recall that Congress has failed to pass CBD legislation.