Hemp Market Trends – Those in the hemp space must remain abreast of the rapidly changing market. As regulations change, new products come to market, and consumer trends adjust, brands and retailers must evolve alongside them to stay ahead of the competition. Today, we’ll discuss everything you should know about the evolving hemp landscape and then discuss some tips you can use to maintain brand relevance in 2023.
CBD Consumer Demographics
CBD continues to dominate the hemp landscape, accounting for $4.17 billion in US sales in 2022. The largest CBD consumer demographic is men ages 25-34 , though there’s been a significant increase in female consumers. Notably, this trend is likely due to evolving public perception coupled with an increased interest in alternative health solutions. What’s more, women tend to prefer the non-intoxicating benefits of CBD whereas men tend to prefer more THC-heavy products like “marijuana”-type cannabis or alternative hemp cannabinoids.
Common Reasons Consumers Use CBD
Pain is the most common reason consumers cite using CBD products, followed by mood problems and sleep. Additionally, more consumers are using topical CBD to help relieve acne and other skin imperfections, as well.
Finally, a large number of consumers give their pets CBD, likely generating over $600 million in US sales in 2021. However, Idaho lawmakers recently banned CBD pet products beginning November 1, 2022, and other jurisdictions may soon follow suit. Always refer to local legislation before selling any hemp cannabinoid products.
Popular and Trending Hemp Products
Tinctures are still the most popular hemp CBD product type, accounting for almost $1 billion US dollars in 2021. The second most popular CBD product type of the year was topicals which accounted for about $800 million in sales in 2021.
Having said that, edibles are the fastest growing hemp cannabinoid market segment with a strong favor towards gummies and other sweet treats. Interestingly, new types of cannabinoid confections have recently emerged on the market, which could give gummy retailers a run for their money. Of particular interest are candies and alternative hemp cannabinoid products, which tend to sell best among millennial men.
Capsules and softgels are another popular CBD product type, particularly among upper-middle-class people between 45-55 years old. What’s more, caps and soft gels sell best in upscale retail environments.
Issues Slowing Hemp Market Expansion
Of course, the hemp industry is not all smooth sailing and proper investing. In fact, many issues continue to slow hemp industry expansion, beginning with varying – and constantly evolving – global hemp laws. This makes it difficult to maintain consistency and build expansive brand awareness and poses challenges regarding distribution, marketing, and banking.
Having said that, the SAFE Banking Act passed in the House last year and is currently awaiting Senate approval before being signed into law. Essentially, the act would make it easier for hemp businesses to secure reliable banking.
Another issue plaguing the current hemp market is co
nfusion regarding alternative or semi-synthetic cannabinoids. To be clear, alternative hemp cannabinoids are federally legal “hemp derivatives” per the 2018 Farm Bill. And, because they mimic THC’s intoxicating qualities, they’re particularly appealing to the recreational market in marijuana-restricted areas.
Having said that, some jurisdictions question the safety of alt cannabinoids due to uncertainty regarding their intoxicating qualities and lack of production oversight. As such, some areas restrict or ban alternative cannabinoid sales, and laws will likely fluctuate throughout the next few years.
Check out this summary of alt cannabinoid laws in America and refer to local legislation for details.
Tips for Hemp Brand Success in 2023
The hemp cannabinoid space will likely be worth $16.2B by 2033, with a CAGR of about 24.5% in that time. Obviously, there are still many opportunities in the ever-expanding hemp retail landscape, but there is also a ton of competition. To help ensure hemp business success in 2023, consider the following.
Follow Hemp News Sources
As mentioned, hemp laws will continue to evolve, especially as new and innovative hemp cannabinoid products come to market. Ensure you stay on top of changing hemp laws in your distribution areas by following reliable hemp news sources. RSS feed readers like Feedly, NewsBlur, or Feeder help organize the publications, hashtags, and topics most relevant to you.
Always avoid compliance-related pitfalls by ensuring that your products, labels, and marketing material are fully compliant with any necessary paperwork to back it up. Failure to do so could cost you time, money, and – most importantly – brand reputation.
Differentiate Your Brand
One of the best ways to differentiate your brand is to sell unique, high-quality items to a specific audience. To do so, determine your audience and the pain points you want to help them address. Next, choose products that can meet those needs in unique and effective ways. Finally, show your audience how your products can help them then follow it up with quality, predictable products every time.
Secure Reliable Suppliers
Consumers expect consistency, which requires suppliers who ensure every product is exactly what it should be. Don’t risk breaks in the supply chain or delayed product delivery by securing a reliable hemp product supplier now. A reputable supplier will help you develop and deliver the best white-label and private-label hemp cannabinoid products to your unique audience. They can also help you stay ahead of hemp market trends with innovative products and solutions to help you maintain your position as an authority in the hemp cannabinoid space.
Final Thoughts About These Hemp Market Trends
2023 is shaping up to be another great year for hemp product sales. Be sure to position your brand ahead of the curve by selling unique and trending hemp products with your brand’s label and identity.
Contact us to learn more about our white-label hemp products and private-label cannabinoid solutions or view our product catalog now. You can also join our community for hemp news and product updates delivered to you via email and social media.
Abby is a freelance cannabis writer and Founder of Cannabis Content, a marketplace and training platform designed to connect cannabis creatives with businesses that need their services. Learn more at CannabisContent.net