The Nielsen Company is an American organization, specializing in data collection and measurement. With half a billion dollars in annual revenue, they lead the industry of market research firms in the United States. Nielsen works to amass data in a broad range of industries, and subsequently predict consumer trends we can expect to see in each. Recently, researchers at Nielsen released their predictions of what can be expected in the cannabis industry this decade. We’ve studied their predictions and put together their top predictions of changes in the decade to come.
More CBD For Your Dollar
While our vape shop offers the best prices in the area, the CBD industry at large is presently a manufacturer’s market. The gap between the cost of CBD product creation and the price offered to smaller-scale retailers and consumers is a steep one – with markups of four to ten times the rate of sale.
The number of American hemp farmers risen dramatically since the passage of the 2018 Farm Bill, which legalized the growth of hemp to sell within the United States. Several factors are expected to contribute to the projected reduction in the consumer cost of hemp products. A study conducted by Hemp Benchmarks last year shows that approximately half of United States hemp growers plan to increase their total acreage in the next few years. In addition to increased crops per cultivator, the number of hemp farmers should continue to rise over the course of the next decade. And as if these two factors weren’t enough, the rate of imports from Canadian and Latin American hemp farmers is expected to increase.
These upcoming changes should cumulatively reduce the cost of hemp for head-shop-owners and head-shop-lovers alike.
An Appetite for Edibles
Pending the Food and Drug Administration’s clearcut approval of consumable forms of CBD like foods, drinks, and capsules – this market is expected to skyrocket. More specifically, growth of this product type will reportedly increase by an estimated 250% to 375% in the year following legislative approval. These forms should be especially popular amongst consumers as they’re the versions with the highest rates of familiarity (aside from already-approved and beloved modes of consumption like vaporizers).
We can also say with certainty that these modes of consuming CBD will benefit from technological advances in the cannabis industry. Developments in nano-technologies and water-soluble product creation will increase the efficiency of absorption for these forms of consumable CBD products and more. CBD-infused beverages – such as coffees, sodas, and sports drinks – are expected to see the most significant rise given the nature of these technological advancements.
Setting the Record Straight
Educational efforts will remain essential for the industry of hemp-based CBD. Nielsen data predicts an increase in educational efforts put forth by manufacturers and retailers themselves. According to fourth-quarter findings put forth by Nielsen’s Health Care Practitioner Tracking Study, 70% of surveyed medical practitioners said that they have discussed the use of CBD with their patients. However, only a third of these same practitioners qualified as knowledgeable about the latest laws surrounding hemp and hemp-based CBD. This disparity illustrates a huge concern for the general public, as Doctors recommendations cannot be considered informed without a working knowledge of surrounding legal standards. There have undoubtedly been missed opportunities for the recommendation of CBD as a viable course of treatment, should misinformation reduce medical provider’s likelihood of suggesting CBD to patients as a qualifying treatment option.
If the medical community at large becomes educated about CBD, the projected increase in its recommended use is expected to be significant. Nielsen shows that primary health care providers could outpace traditional marketers to generate brand and format loyalty within the industry of CBD and hemp-based products. In Nielsen’s recent study, Thinking Beyond the Buzz, it was found that medical advice is a primary influence behind the decision to partake in clinical trials of hemp-based CBD products.
In fact, fifty percent of adults who indicated an interest in hemp-CBD products said that their Doctor’s recommendation would increase their likelihood of trying a given hemp-CBD product. By comparison, only 17% would try a product solely based on the recommendation of a friend, 16% based on the word of a family member, and 15% if the product was produced by a familiar brand.
Man’s Best Bud
The popularity of CBD products’ use among pet-owners has risen considerably in the past several years. Nielsen data shows that 37% of dog owners who currently give vitamins and supplements to their pets claim they’re likely to provide their pup a hemp-CBD infused vitamin in the next calendar year. Similarly, of users who claim to have given their pet a hemp-CBD product in the past, a surprising 20% used a product which wasn’t specifically designed for pets.
Hemp Forges A-Head Shop
With the surging popularity of hemp-CBD products across the United States, the industry holds significant growth potential. Opportunities within the industry are certain to unfold in these ways and countless more in the decade to come – and we couldn’t be more excited to watch as their limitless potential unfolds. In fact, we’re proud to join this booming industry with our selection of hemp-based wearables and multipurpose vaporizer products.
At 710 Pipes, we carry all of the smoke shop products you want and trust, like JUULs and other vaporizers, water pipes, hat pins and so much more! Stop by our Northglenn head shop between 8AM-10PM, seven days a week. We have two Denver pipe shops open daily from 12-8PM (11AM-9PM Thursdays through Saturdays) – on Colfax and on Evans near DU. Denver University students get 10% off with a valid student ID!
We’ll see you soon!