The Covid outbreak and its fallout on the cannabis and CBD markets are under intense scrutiny by industry observers. Commercial closures, rampant anxiety and focus on self-care are only some of the factors driving shifts in consumer behaviors. Particularly for the overcrowded CBD market, these changes have far-reaching implications.
With millions of jobless and the greatest recession in US history looming on the horizon, consumers are tightening their belts and looking for value in their self-care products. CBD companies are taking note and, with brick and mortar outlets shuttered, they are moving online with deals to attract the budget-conscious consumer. This spells good news for older adult CBD enthusiasts.
I emailed and spoke on the phone with Virginia Lee, CBD Research Manager at the Chicago-based Brightfield Group, about the CBD consumption patterns of Baby Boomers and elder adults, and how they are positioned to benefit from this new price-slashing trend.
Because boomers’ awareness of CBD’s health benefits is growing, Lee explained, many are shifting from trial use to becoming daily users. In fact, the number of boomers who reported using CBD 5 or more times per week rose from 36% in 2019 to over half (56%) in 2020, according to Brightfield Group’s consumer insights. They also found that 19% of boomer CBD consumers reported using CBD multiple times per day.
When questioned during the period from March 16-19, 27% of CBD-using boomers answered that they expected to use more CBD during the Covid-19 crisis.
CBD During Covid
The CBD space was already glutted before the pandemic hit, but the coronavirus may do its own form of Darwinian winnowing. Writing about COVID’s effects on the CBD market in the Brightfield Group blog, Managing Director, Bethany Gomez, explains:
Smaller brands often rely on small or local retailers to distribute the bulk of their products. In the current environment, mass shuttering of retailers around the country is likely to deal a death blow to many of the smaller brands in the market. This could actually work in the favor of many of the larger brands, who are better positioned to weather the storm and be able to support a robust e-comm strategy. If they can keep the lights on over the next few months, they may be competing in a much less crowded field once we emerge from the crisis.”
Part of that e-comm strategy is to offer budget-conscious consumers the CBD offers they are looking for. Boomers take note!
Price Reductions and Free Shipping
Most of us aren’t used to seeing CBD products other than lip balms sold for under $10. But for a few days in May, Bluebird Botanicals offered 40% off its Classic CBD Oil (1/3 oz originally priced at $12.95) for $7.77.
To celebrate International Day of Families, CBDMEDIC is offering a buy-1-get-1-free product offer during May, along with a free hand sanitizer and free shipping in the US.
KoiCBD is also offering a limited-time-only buy-1-get-1-free with certain products.
Lee provides some insight from CBD industry leader Charlotte’s Web:
“Charlotte’s Web in its May 14, 2020 Q1 2020 earnings call stated that they had reduced their list prices across their portfolio by 15 to 20% in DTC (Direct-to-Consumer) and B2B in late March/April… Among the 7 topicals they launched in April, 3 are priced at $14.99.”
On the Charlotte’s Web website, signing up with your email will get you a 10% discount on your first order.
For those running low on CBD, now’s a good time to let your fingers do the walking – and if you are a boomer, you’ll know what mean.