The production of CBD products has changed positively during the COVID-19 pandemic. These changes include:
- Increased in CBD product production
- Increased demand for CBD products
- Greater variety of CBD products
- Lower sales, despite the increased demand
The CBD industry was expected to grow exponentially in 2020, thanks to the growing popularity of its wellness products. That was before the COVID-19 pandemic hit. However, this figure was revised down after the first six months of the pandemic. The industry was also expected to undergo many other changes. Here is an overview of how it fared, from production to sales.
CBD Production During the Pandemic
The COVID-19 pandemic has not slowed down the production of CBD. Production has increased, considering the surge in CBD sales and consumption.
More CBD users than ever before, and their consumption rate has increased considerably since the pandemic hit, as discussed below. The CBD production sector has grown with the growing market, producing enough products to meet the extra demand.
The production growth has been attributed to a range of factors. For starters, the cultivation of hemp has increased considerably since the 2018 Farm Bill was signed into law. The pandemic didn’t impact hemp’s cultivation. Consequently, the processing sector has plenty of raw materials for CBD oil extraction and other CBD products.
Hemp growers are also using new, more efficient technology. This technology has increased the quality and quantity of hemp, leading to the extraction of more CBD oil.
CBD Product Diversity
The production of CBD has not only increased but also diversified through innovation. CBD users have been craving something new and better, and CBD manufacturers have been developing new products to suit their preferences.
Consequently, CBD products are taking new shapes, besides liquid oil. For example, CBD gummies are fast growing in popularity, thanks to the convenience they offer compared to oil. For instance, gummies do not spill and come in a wide range of tasty flavors.
CBD producers are also exploring products that blend CBD oil with other health and wellness products. For example, there are more CBD products that incorporate Vitamin C through healthy products such as elderberry.
The diversity of CBD end-user products has also contributed to the increased production and sale of CBD. It has especially played out well with the younger generation, as new products are fun and easy to use on the go.
CBD Prices & Sales
CBD sales were expected to fall short of the projections made before the COVID-19 pandemic hit. Earlier projections suggested that the global market would grow from $967 million in 2020 to more than $5 billion in 2025. However, this figure was revised down to $2.9 billion after factoring in the pandemic.
Interestingly, CBD sales have increased considerably during the pandemic. CBD has been praised for its health and wellness properties, many of which are effective against chronic diseases. Consequently, the market has registered many new users of CBD. What’s more, most CBD users have increased their intake of CBD products during the lockdown.
A recent report by Brightfield shows that many CBD users have increased their consumption by almost 50 percent during the pandemic. Approximately 44 percent of thousands of users targeted in the survey say that they take more CBD for its wellness benefits, considering the risks posed by the COVID-19 virus. Six percent of the respondents also reported using CBD daily, as compared to periodically before the pandemic.
It is also worth noting that CBD sales have shifted quickly from brick-and-mortar stores to e-commerce. The pandemic necessitated prolonged lockdowns in many places across the world. Many businesses were also shut, including brick-and-mortar CBD stores. However, e-commerce stores were still open, and users could simply order CBD products and have them delivered to their doorstep.
The shift to e-commerce has had mixed impacts on CBD companies. For starters, hundreds of small CBD stores have been shuttered by the prolonged lockdowns. However, many of the e-commerce CBD stores have registered an uptick in sales. The lion’s share of the e-commerce revenue has been going to the significant CBD retailers.
Final Thoughts: A Bright Future Ahead
The CBD industry has exhibited remarkable resilience during the COVID-19 pandemic. It has laid the groundwork for its growth and expansion. Consequently, the CBD industry is expected to keep growing in aspects such as production and sales. The pandemic is already easing, and the market’s growth may be further revised up to the figures projected before the pandemic.