Last updated October 28, 2020
For those of our readers who remember our post from last month outlining the market growth of Cannabis products in the U.S, BDS Analytics should be a familiar name. For those who do not, we recommend taking a look at BDS Analytics’ GreenEdge retail tracking service which provides information on current market trends in the legal Cannabis markets of the United States. While our last post did a great job of showing the monthly revenue figures of Cannabis sales by category, we would like to encapsulate one crucial facet of Cannabis sales that has the power to flip the entire industry upside down: CBD.
For those of you who may not know the difference between THC and CBD, CBD provides many of the same medical benefits of THC without its psychoactive effects. CBD has been a vital part of the fight for cannabis legalization and is on the verge of serious growth. Within the last two months, three of the U.S.’s largest pharmaceutical retail chains have started selling CBD-infused products in their stores, despite the current federal legislation. BDS Analytics reports that CBD’s projected sales increase in 2020 is estimated to be about $20 billion. This breaks down to roughly $4 billion from dispensaries, $2.2 billion from pharmacies, and $12 billion in retail.
Education is Necessary
Another recent study by BDS states that almost 70% of the general public does not know the difference between CBD and THC, or has incorrect knowledge surrounding CBD and THC. This means 70% of people in the United States don’t have enough information even to consider using a CBD product. As the industry moves further from the “lazy” connotations surrounding cannabis products, new advertising, and branding opportunities are emerging to cater to a more diverse customer base.
What we know now
The most popular products are ingestible, which make up about 53% of the market, followed by topicals (24%). If you’re considering getting a serious piece of the CBD pie in the next few years, it’s essential that you get a substantial head-start in the industry. Generate brand recognition by familiarizing consumers with your products now to create a consistent customer base. Since CBD brands are only going to continue expanding, having an early start will set you up as a trusted company.
Professionally branding your packaging can be done in any number of ways. Using “mood enhancing” language such as relief, clarity, or energy highlights desired effects. Once these desired effects catch the customer’s eye, the first thing they’re most likely going to look for is more product information. Great packaging can answer the questions a consumer didn’t even know they had. It is only a matter of time before all Cannabis packaging is branded. Last year, 96% of all Cannabis packaging in the state of Colorado was branded. That is why explaining your product’s abilities and providing educational facts on your packaging is essential to creating a trusting relationship between you and your customers.
DIZPOT’s sole purpose is to provide our customers with the best type of packaging that helps accomplish their brand’s objectives. We know how to highlight the unique qualities that cannabis companies should be advertising in their packaging materials. We welcome the opportunity to show new and current customers all that we can do, and the pride we take in our Old School Service!