2020
9
US Consumer Interest in CBD in Food and Drink Market Report 2020
2021-05-08T04:46:44+01:00
OX987018
3695
137903
[{"name":"Cannabis and CBD","url":"https:\/\/store.mintel.com\/industries\/health-wellbeing\/cannabis-cbd"}]
Report
en_GB
“CBD in food and beverage is a tricky business, perhaps more so than any other cannabis-related endeavor. While hemp-derived CBD is legal at the federal level, the FDA has not…

US Consumer Interest in CBD in Food and Drink Market Report 2020

£ 3,695 (Excl.Tax)

Report Summary

Providing the most comprehensive and up-to-date information and analysis of the US Consumer Interest in CBD in Food and Drink market including the behaviors, preferences, and habits of the consumer.

In the complicated cannabis world of what is and isn’t legal, approved or regulated, CBD enhanced food and beverage is among the most complicated. While hemp-derived CBD is legal at the federal level, the FDA has not approved it for use in foods and beverages. Yet, a crop of brands are dipping their toes into the water, marketing products without this approval, certainly taking a certain level of risk as the FDA’s research is ongoing. Furthermore, many consumers are confused about CBD, even more stressed than ever and seeking ways to support health, suggesting that there is room for education and growth in the CBD market despite the limitations. This Report explores consumer interest in food and drink products with CBD, intended to guide innovation pipelines should the FDA adjust policies, not current consumption of CBD food and drink products. Yet, there are opportunities now for CBD brands and food and drink brands to tap into the new occasions with CBD users without entering any legal grey areas.

Read on to discover more about Consumer Interest in CBD in Food and Drink, read our CBD in Health and Wellness: Incl Impact of COVID-19 – US – July 2020 report, or take a look at our other Cannabis Market Research reports.

Quickly understand

  • COVID-19 sharpens focus on BFY (better for you)
    foods and drinks but complicates how and where consumers can access CBD varieties.
  • Recession makes consumers skeptical – a difficult environment for a complicated emerging market.
  • The FDA makes it difficult to effectively produce, market and sell CBD in food and beverage.
  • Consumers show some skepticism, but CBD will thrive as a functional ingredient.

Covered in this report

Brands include: Charlotte’s Web, Bluebird Botanicals, Plant People, Good Bites, CBDfx, Just CBD, Diamond CBD, Relax, Grön, CBD American Shaman, Black Angus Links, Juju Royale, VYBES Alkaline Water Company, Vita Coco CBD, Sweet Reason, Ocean Spray, Sprig, Green Roads, Sunday Scaries, The Brother’s Apothecary, PB&J’s, Yum Yum Edibles, CBD Honey Sticks.

Expert analysis from a specialist in the field

This report, written by Michele Scott, a leading analyst in the Cannabis sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

CBD in food and beverage is a tricky business, perhaps more so than any other cannabis-related endeavor. While hemp-derived CBD is legal at the federal level, the FDA has not approved it for use in foods and beverages. Yet, a crop of brands are dipping their toes into the water, marketing products without this approval. Some have had more success than others – yet all are open to a range of liabilities. Maverick brands have or will have to weigh whether the opportunity is worth pursuing now or more appropriately suited for the product innovation pipeline down the road. In either scenario, the market is ripe with potential. The number of consumers interested in trying CBD is slightly larger than the share of consumers currently using it and even those who have abandoned use, pointing to the potential to double the market through building awareness, education and, of course, product development. And although the circumstances for new product trial have been unconventional in 2020, the need for products delivering many of CBD’s benefits, particularly stress relief and aiding sleep, among others, have simultaneously been amplified.
Michele Scott, Senior Analyst
Michele Scott
Senior Analyst

Table of Contents

  1. Overview

    • What you need to know
    • Key issues covered in this Report
    • Definition
    • COVID-19: Market context
  2. Executive Summary

    • Top takeaways
    • Market overview
    • Impact of unemployment
      • Figure 1: Unemployment forecast 2019-25
    • Impact of COVID-19 on CBD in food and beverage
      • Figure 2: Short-, medium- and long-term impact of COVID-19 on CBD in food and drink, August 2020
    • Opportunities and Challenges
    • Reemergence
      • Figure 3: Knowledge of CBD, THC and hemp, February 2020
      • Figure 4: Coronavirus lifestyle changes, April-July 2020
    • Recovery
      • Figure 5: Interest in CBD in food, February 2020
      • Figure 6: Interest in CBD in beverage, february 2020
      • Figure 7: Interest in purchase locations for CBD in food and drink, February 2020
      • Figure 8: Attitudes about food and drink with CBD, February 2020
  3. The Market – Key Takeaways

    • The future depends on the FDA
    • Pricing must consider employment
    • Product placement strategies vary
    • Pandemic fears a good news/bad news game
  4. Market Size and Forecast

    • CBD will survive COVID but will face challenges…
      • Figure 9: Total US sales and forecast of CBD market, at current prices, 2015-23
    • Consumer spending is stalled, and expected recovery is slow
      • Figure 10: Consumer spending predictions pre- and post-COVID-19
    • More than half report financial health concerns
      • Figure 11: Financial health, July 2020
    • Priority shifts towards wellness
      • Figure 12: Coronavirus lifestyle changes, July 2020
    • Impact of COVID-19 on CBD in food and beverage
      • Figure 13: Short-, medium- and long-term impact of COVID-19 on CBD in food and drink, August 2020
    • Reemergence
    • Recovery
    • COVID-19: US context
  5. Market Factors

    • Regulations complicate CBD’s future
    • CBD can be confusing
      • Figure 14: Knowledge of CBD, THC and hemp, February 2020
    • Social media offers optimism
    • Unemployment exacerbates CBD concerns
      • Figure 15: Unemployment, June 2020
    • Wellness will not wane
      • Figure 16: Experience and interest in functional ingredients
    • Functional foods offer opportunity to do more than just CBD
      • Figure 17: Experience and interest in functional ingredients
  6. Market Opportunities

    • Innovation will be stunted without FDA approval
    • Promotion must balance education and interest
    • In-store and online create unique challenges
    • Consider who target markets are before placing product
  7. Companies and Brands – Key Takeaways

    • Follow known trends
    • There’s room for health and indulgence
    • CBD is a versatile ingredient
  8. Competitive Strategies

    • Overview of the brand landscape
    • Established CBD brands look to the power of suggestion
      • Figure 18: CBD brand suggested recipes
    • Health halos evangelize some sweet snacks
      • Figure 19: Better for you sweet snacks with CBD
    • Other treats just satisfy sweet teeth
      • Figure 20: Indulgent sweet snacks with CBD
    • Savory snacks
      • Figure 21: Savory snacks with CBD
    • Extra-functional drinks
      • Figure 22: Functional beverages with CBD
    • Sparklers ride the sparkling water wave
      • Figure 23: Sparkling waters with CBD
    • CBD and caffeine: opposites attract?
      • Figure 24: Caffeinated drinks with CBD
    • Condiments
      • Figure 25: Condiments with CBD
  9. The Consumer – What You Need to Know

    • CBD snacks win with food
    • Consumers are chasing the health halo with beverages
    • CBD in food and drink: a health and wellness ingredient for grocery items
    • Foods and beverages first
    • Consumers are hip to trends, show their savvy side
    • Transparency, education and quality will build brand trust
  10. CBD Use and Interest in Trial

    • Interest shows latent potential
      • Figure 26: CBD use and interest, by gender, February 2020
    • Health struggles inspire use
      • Figure 27: CBD use and interest, by health concern, February 2020
  11. Interest in CBD in beverage

    • Alcohol trails behind other beverages
      • Figure 28: Interest in CBD in beverage, February 2020
    • Women show more interest in BFY beverages
      • Figure 29: Interest in CBD in beverage, by gender, February 2020
    • Mid-aged consumers show more interest
      • Figure 30: Interest in CBD in beverage, by age, February 2020
  12. Interest in CBD in Food

    • CBD edibles win at snack time
      • Figure 31: Interest in CBD in food, February 2020
    • Salty snacks present opportunity with men
      • Figure 32: Interest in CBD in food, by gender, February 2020
    • Young consumers are the future of CBD
      • Figure 33: Interest in CBD in food, by age, February 2020
  13. Potential Purchase Location

    • Health, food focus adds comfort to CBD
      • Figure 34: Interest in purchase locations for CBD in food and drink, February 2020
    • Grocery stores are a safe bet across age groups
      • Figure 35: Interest in purchase locations for CBD in food and drink, February 2020
    • Current users are more evenly split
      • Figure 36: Interest in purchase locations for CBD in food and drink, February 2020
  14. Important Attributes

    • Dosing rises to the top for CBD-specific attributes
      • Figure 37: Important attributes for CBD in food and drink, February 2020
    • Women want more from CBD
      • Figure 38: Important attributes for CBD in food and drink, by gender, February 2020
    • Older consumers have high expectations
      • Figure 39: Important attributes for CBD in food and drink, by age, February 2020
  15. Associated Attributes

    • CBD edibles are trendy, but some find merit
      • Figure 40: Attributes associated with food and drink with CBD, February 2020
    • Men think more positively about CBD
      • Figure 41: Attributes associated with food and drink with CBD, by gender, February 2020
    • CBD drinks have more work to do with women
      • Figure 42: Attributes associated with food and drink with CBD, February 2020
    • Don’t neglect opportunities with older consumers
      • Figure 43: Attributes associated with food with CBD, February 2020
    • Young consumers open, but not naïve
      • Figure 44: Attributes associated with drink with CBD, February 2020,
  16. Attitudes and Behaviors about Food and Drinks with CBD

    • Trust in CBD is muddied by misunderstanding
      • Figure 45: Attitudes about food and drink with CBD, February 2020
    • Women will approach with caution
      • Figure 46: Attitudes about food and drink with CBD, by gender, February 2020
    • Trust and comfort go hand in hand for older consumers
      • Figure 47: Attitudes about food and drink with CBD, by age, February 2020
    • Comfort consumers with clear and concise information
      • Figure 48: Attitudes about food and drink with CBD, by experience level , February 2020
  17. Appendix – Data Sources and Abbreviations

    • Data sources
    • Consumer survey data
    • Abbreviations and terms
    • Abbreviations

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

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Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

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*databooks not available with UK B2B Industry reports.

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