US CBD Market Forecast Reduced Due to Healthy Consolidation
Brightfield Group forecasts the US CBD market will grow 14% in 2020.
CHICAGO (July 31, 2020) – In 2020, the US CBD market is projected to reach $4.7 billion in sales, with 14% growth from 2019 sales of $4.1 billion. With Americans facing high unemployment levels, 2020 retail sales are not expected to reach levels anticipated prior due to the emergence of the COVID-19 pandemic.
Economic pressures faced by consumers, temporary store closures, and inaction by the US FDA (Food and Drug Administration) is constraining growth of the US CBD market. By 2025, Brightfield Group estimates the total US CBD market could reach $16.8 billion. Despite these market challenges, the base of US CBD consumers is still growing strong. Consumers adapted in Q2 2020 with 47% of CBD consumers purchasing online last quarter.
The pandemic has been a significant extinction event for hundreds of small brands in the US CBD market. Because the market is seeing both expansion and consolidation in 2020, the top 20 brands have technically lost market share but still maintain the majority piece of a now larger pie.
“It’s a healthy consolidation of the market,” says Bethany Gomez, Managing Director of Brightfield Group. “It’s much more accelerated than people expected, but you can’t have this many players and have a healthy market. There was going to be an extinction event and it turned out to be COVID.”
Key growth drivers for CBD will be natural health and wellness trends, product variety, expanded distribution channels, and strategic marketing – all of which are discussed in our recent CBD Market Report.
About Brightfield: Brightfield Group is the leading consumer insights and market intelligence firm for the CBD and Cannabis industries. They work with well-known brands, manufacturers, and agencies across the world, providing strategic data, insights, and guidance for these dynamic markets. Leveraging a unique multi-source approach, Brightfield Group delivers a holistic, forward-looking view into the everchanging brand, market, and consumer landscape.
