INSIGHTS INTO THE $22 BILLION CBD EDIBLES INDUSTRY

People uninitiated to cannabis culture have many misconceptions about Cannabidiol (CBD), such as believing CBD and marijuana are synonymous. In fact, they are completely different substances, although both are derived from cannabis. CBD has no psychoactive properties, unlike tetrahydrocannabinol (THC), which will give you a “high”.

THC and CBD are both found in Cannabis sativa, but only one contains significant amounts of THC. This variety - and the flower heads it produces - is commonly called marijuana. Hemp, another cultivar of cannabis, also contains CBD, but has very low amounts of THC.

CBD won’t sedate you, but it will create a sense of relaxation and calm for the user. It’s a popular ingredient in oils, various edibles and snacks, cocktails and restaurant food. CBD popularity has surged in recent years, and cannabis industry insiders believe this trend will intensify.

CBD EDIBLES: A $22 BILLION INDUSTRY

The cannabis industry projects the CBD edibles marketwill reach $22 billion in 2022. New players are entering the industry in droves, intent on carving out their share of this budding market with edibles, tinctures, vape pens and more. Intense competition makes speed to market and brand establishment of the utmost importance. In the race to establish positions in this new market, CBD players need to understand the changing preferences of CBD users. Users are still discovering what works for them and what does not. Social listening provides the data needed to understand changing customer preferences before the competition.

UNDERSTANDING DEMAND FOR CBD SNACKS

According to a National Restaurant Association study, three out of four chefs considered CBD-infused food a hot trend in 2019. With this level of interest, it’s not surprising that a Cogent Infotech client in California, a provider of office snack foods, saw the potential in CBD snacks. But before investing in development, the company needed to understand the demand level. The company needed to diversify its portfolio, but not before doing its due diligence.

SOCIAL LISTENING TO DETERMINE CUSTOMER WANTS

Cogent Infotech provided that due diligence by using social listening technology to gain a detailed understanding of their customers. We saw a continued rise in the number of conversations about CBD snacks, which demonstrated strong potential for the CBD snack market.

There were thousands of social media conversations about CBD snacks and widespread anticipation of new items within important target markets. By narrowing down into the conversations using social listening Cogent infotech captured key product development data to help decide on the product roadmap, shedding light on the most desired product types such as bars, drinks and gummies and on the most popular flavors such as Berry & Cherry, Chocolate and Citrus 

WHAT SOCIAL MEDIA USERS ARE SAYING ABOUT CBD SNACKS

The study also revealed high interest in the health benefits of CBD snacks and peoples’ likes and dislikes. For example, we found 20,000 conversations regarding CBD pain relief, and almost as many about anti-anxiety. Sleep and insomnia disorders and antiinflammation were also popular topics, with about 10,000 and 6,000 conversations respectively. Anti-epilepsy and post-workout applications were also frequently discussed  We connected some strong positive emotions to conversations regarding CBD products. Words such as “great,” “best,” “happy,” and “delicious” were among the most commonly used in the analyzed conversations showing people are really benefitting from the CBD infused products

WHO IS TALKING MOST ABOUT CBD

We also discerned the demographics of people involved in CBD conversations, as seen below. The 55-64 age group spoke about how CBD infused products have helped with regards to pain relief and good sleep. They also mentioned that CBD products helped more than any prescribed medicine in the market. 54% of the conversations were male driven but Women, 46%, were equally engaged with CBD conversations and its benefits. 

Cogent Infotech also identified top social listening sources and forums for future research. We discovered that Twitter and Instagram mentions were mostly product promotions, whereas forum conversations were more relevant with respect to reasons for consuming CBD products. They included conversations about use cases, likes/dislikes and product applications. Reddit was the top forum for CBD snacks.

THE POTENTIAL OF THE CBD SNACKS MARKET

The FDA’s recent conference on CBD products featured hundreds of witnesses. Cannabis companies stand to make vast fortunes once the regulatory framework is made clear. In this intensely competitive industry, information is king. To rise to the top, companies need to understand the marketplace better than the competition.

Cogent Infotech provides the precise insights needed to develop popular products at the right price points. There is a wealth of data on the internet and social listening can help you develop customer centric products and provide valuable insights to your future product roadmap.If you are in the CBD business, contact Cogent Infotech to benefit from the insights that propel business growth. 

Stay tuned for our next insight and connect with us on social@cogentinfo.com