CHICAGO — More than half of consumers who use products containing cannabidiol (CBD)—a nonpsychoactive component of cannabis—are increasingly consuming fewer prescription and over-the-counter (OTC) medications, according to a new study by High Yield Insights, a cannabis consumer insights firm.
The study explores why and how consumers are incorporating CBD into their lives and its effect on other consumer packaged goods categories. High Yield Insights surveyed 2,000 consumers ages 21 and older, 1,500 of whom had used CBD products within the past three months, and 500 who have never used it.
Top reasons for CBD product use include mental and emotional health, specifically for anxiety (63%) and depression (44%); and physical health, such as for chronic joint pain (39%), muscle aches (33%) and sleeplessness (30%), according to the study.
“Current users overwhelmingly believe in the power of CBD,” said Mike Luce, co-founder of High Yield Insights. “Over 80% of our study participants have faith in CBD’s ability to improve overall wellness, including a myriad of physical and mental health conditions. This perception causes ripple effects in other categories like alcohol, as CBD is seen as a healthier alternative for occasions such as winding down in the evening. We heard consumers voice greater interest in CBD than other products like vitamins and supplements as well. These substitution effects will spread across many mainstream categories as awareness, interest and usage of CBD products continue to grow.”
CBD is hurting the alcoholic beverage industry, according to the study. More than 20% of CBD users are increasingly drinking fewer alcohol beverages, according to the report. Specifically, a quarter of CBD users are drinking less wine, 56% are drinking less macro and craft beer and nearly two-thirds are drinking less spirits. Wine consumers are more open to using CBD than those who drink beer or spirits, the study said.
“It's not surprising to see alcohol brands investing in the Canadian cannabis industry and the domestic CBD marketplace, given the potential for growth or at least capturing substitution dollars in markets that are going to be most affected,” Luce said.
Chicago-based High Yield Insights produces reports and consumer insights on the cannabis market and cannabis consumers. Its focuses include consumer behavior, product design and market viability.