The Covid break out and its fallout on the cannabis and CBD markets are under intense examination by industry observers. Business closures, rampant stress and anxiety and focus on self-care are only a few of the aspects driving shifts in customer behaviors. Especially for the overcrowded CBD market, these modifications have far-reaching implications.
With millions of unemployed and the greatest economic crisis in United States history looming on the horizon, consumers are tightening their belts and searching for value in their self-care items. CBD business are keeping in mind and, with physical outlets shuttered, they are moving online with offers to attract the budget-conscious customer. This spells great news for older adult CBD enthusiasts.
I emailed and spoke on the phone with Virginia Lee, CBD Research Supervisor at the Chicago-based Brightfield Group, about the CBD usage patterns of Baby Boomers and older adults, and how they are placed to take advantage of this new price-slashing trend.
Due to the fact that boomers’ awareness of CBD’s health benefits is growing, Lee discussed, numerous are shifting from trial usage to becoming everyday users. In reality, the variety of boomers who reported using CBD 5 or more times per week increased from 36%in 2019 to over half (56%) in 2020, according to Brightfield Group’s customer insights. They likewise found that 19%of boomer CBD consumers reported utilizing CBD multiple times daily.
When questioned during the period from March 16-19, 27%of CBD-using boomers addressed that they anticipated to utilize more CBD throughout the Covid-19 crisis.
CBD Throughout Covid
The CBD area was currently glutted prior to the pandemic hit, however the coronavirus may do its own form of Darwinian winnowing. Discussing COVID’s effects on the CBD market in the Brightfield Group blog, Handling Director, Bethany Gomez, discusses:
Smaller sized brands frequently depend on little or regional retailers to distribute the bulk of their products. In the present environment, mass shuttering of retailers around the country is likely to deal a death blow to a lot of the smaller brand names in the market. This might really work in the favor of a number of the bigger brand names, who are better placed to weather the storm and have the ability to support a robust e-comm technique. If they can keep the lights on over the next couple of months, they may be completing in a much less crowded field once we emerge from the crisis.”
Part of that e-comm strategy is to offer budget-conscious customers the CBD provides they are trying to find. Boomers bear in mind!
Price Reductions and Free Shipping
Most of us aren’t used to seeing CBD products other than lip balms offered for under $10 For a few days in May, Bluebird Botanicals used 40%off its Classic CBD Oil (1/3 oz originally priced at $12
To celebrate International Day of Families, CBDMEDIC is using a buy-1-get-1-free product offer during May, in addition to a free hand sanitizer and complimentary shipping in the US.
KoiCBD is also using a limited-time-only buy-1-get-1-free with specific items.
Lee provides some insight from CBD market leader Charlotte’s Web:
” Charlotte’s Web in its May 14, 2020 Q1 2020 incomes call mentioned that they had lowered their list prices throughout their portfolio by 15 to 20%in DTC (Direct-to-Consumer) and B2B in late March/April … Amongst the 7 topicals they released in April, 3 are priced at $1499″
On the Charlotte’s Web site, registering with your email will get you a 10%discount rate on your very first order.
For those running low on CBD, now’s a great time to let your fingers do the walking – and if you are a boomer, you’ll understand what indicate.