Between 2020 and 2022, explosive consumer demand and rapid e-commerce growth quickly shaped the emerging, alternative cannabidiol (CBD) industry. The introduction of new form factors, value price points, and novel ingredients also played a role in developing the CBD channel as we see it today. To stay competitive into and beyond 2022, C-Stores should keep in mind the ongoing shifts in adult consumer personas, demands, and behavior. Get informed so you can focus on your store’s revenues and profits.
What’s In Demand?
Phrases like “Full Spectrum” and “Isolate” appear all over CBD packaging, marketing materials, and advertisements these days- but what do they really mean? Simply put, Full Spectrum refers to CBD with all the same compounds found in the original plant it is extracted from, hemp. It’s comprised of a variety of different cannabinoids along with CBD, the combination of which may work better together to further maximize the wellness potential of a product. Another popular type of CBD is Isolate, a compound that’s extracted and refined extensively to contain only CBD. In 2020, almost 60% of CBD consumers stated they preferred Full Spectrum CBD products. By the end of 2021, this number began to decline thanks to more interest in Isolate and even Broad Spectrum CBD options (Full Spectrum CBD with THC, the psychoactive ingredient in marijuana, removed). As consumer preferences change, so should the assortment of C-Store CBD options to fulfill new market demands and trends.
What’s Age Got To Do With It?
For the last few years, the age distribution of adult consumers who used CBD products remained predominantly stable. Yet in 2021, the category experienced nearly a ~45% increase in its younger adult consumer population (shoppers between the ages of 21 to 23). This may suggest a growing trend that more young adults are starting to enter the category at large- enabling retailers to capitalize on the opportunity to instill valuable brand loyalty and build a dedicated relationship for longer-term revenue streams and per-store sales.
What About Income?
Even though the average income of adult CBD consumers has remained stagnant from 2020 to 2021, the category has not suffered. As CBD awareness and knowledge becomes more widespread, there is a burgeoning willingness among CBD shoppers to spend even more on higher-quality products that they feel will better accommodate their wellness needs. Within the last year alone, nearly half (40%) of C-Store CBD purchasers reported spending between $11 and $30 per CBD product- a ~7% increase compared to the previous year. As the CBD industry and consumer perception evolves, it is becoming clear that the C-Store channel is well suited to support it. In the end, larger average basket values mean more money in the C-Store owner’s pocket.
A Look Ahead
The CBD channel is poised to drive nearly $40 Billion in U.S. sales over the next few years, welcoming the opportunity for an entirely new flow of consumers and exciting, in-demand products to C-Stores. Yet with any budding industry, education is key to category success. The C-Stores that will succeed in 2022 will acknowledge that it’s crucial to invest in in-store marketing collateral such as point-of-sale packages to create a space and shopping environment that brings value, inquiry, and attention. Ultimately though, they’ll partner with the right CBD brands to not only stock a product mix which adult consumers want, but also leverage their industry insight to stay informed on the rapidly evolving landscape.
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Source: All data sourced from Brightfield Group
This post is sponsored by E-Alternative Solutions