US Hemp CBD Market To Hit $5.3B In Sales In 2021, Driven By Drinks, Gummies And Charlotte's Web
Cannabis research and data firm Brightfield Group released its latest report this week on the U.S. CBD market.
According to the researchers, the U.S. hemp-derived CBD market will reach $5.3 billion in retail sales in 2021. This would imply 15% growth over 2020 sales of $4.6 billion.
What’s more, Brightfield Group expects sales to reach $16 billion by 2026, driven by accelerated growth of ingestibles (tinctures, capsules, drinks). New consumers will enter the market as prices continue to drop and access expands.
Key findings include:
Drinks and gummies are expected to be the fastest-growing product types in 2021 with 71% and 44% value growth, respectively.
Tinctures will retain the highest share of the market in 2021, with 18% of retail sales.
In 2021, online sales will surpass $2 billion, accounting for 38% of the total market, as Americans continue to turn to online shopping during the pandemic.
Charlotte's Web Holdings Inc (OTC: CWBHF) continued to lead the market in 2020, accounting for 3.6% of retail sales in Q4 2020.
“The connection between cannabis, wellness, and CBD becomes increasingly important as mergers and acquisitions heat up. Non-CBD companies partnering with and acquiring CBD brands will influence how the competition looks in the space, as well as how final products are positioned and expanding the realm of consumers they reach,” Connor Skelly, marketing director at Brightfield Group, told Benzinga.
“An influx of wellness-focused CPG dollars will expand horizons for CBD. Once legislative issues are worked out, distribution channel relationships already forged by wellness and cannabis brands will increasingly shape how, when, and why people buy CBD,” Skelly concluded.
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