December 2022 - GVB Biopharma

What CBD Beverage Sales Tell Us About Industry Growth

Posted on December 20, 2022March 27, 2024 by kateryna

The CBD industry has expanded in many ways over the last decade. Thousands of times more people use CBD now than they did in the early 2010s, for instance, but the CBD market has also seen a massive expansion in the types of products offered.

During the early days of the industry, even CBD lip balms were viewed with skepticism. Now, the average person doesn’t have a problem with CBD being in drinks you can buy at a grocery store. Over the last few years, beverages have been touted as the next major pivot of the CBD industry, citing interest from major beverage producers and the recent uptick in CBD beer sales.

Recent data from Hemp Industry Daily

For insights into this microcosm of the CBD industry, we turn to data provided by Hemp Industry Daily¹ for the year ending in March 2021. As the country neared the end of the pandemic, Hemp Industry Daily took a close look at the performance of CBD beverages in grocery stores and convenience stores.

Despite being the anchor for CBD’s entry into many grocery stores, CBD beverages had failed to deliver expected sales volumes in brick-and-mortar environments, a result that initially proved difficult to understand. By providing ample data and analysis, Hemp Industry Daily was able to shed light on the reasons behind the slow growth of CBD beverages in convenience and grocery environments and provide actionable insights going forward. Let’s take a closer look:

Consumers moved online during the pandemic

Hemp Industry Daily interviewed Rick Maturo, a cannabis specialist at legendary polling firm Nielsen, for further insights into this considerable shift in CBD beverage buying behavior. According to Maturo, “the pandemic has reinforced online CBD buyers’ behaviors” and has pushed CBD consumers online due to increased convenience and safety.

Just as CBD beverages were catching on in grocery stores and convenience stores, the pandemic arrived, shifting sales online. With retail shopping behaviors essentially normalizing post-pandemic, it would be reasonable to expect a similar uptick in CBD beverage sales as long as brands offer products that fit the needs of consumers.

CBD sparkling water is the most popular

There’s still a lot we can learn about CBD beverage sales in 2021 to properly prepare for the future’s needs. It’s important to note, for instance, that CBD sparkling water products made up 57% of total retail CBD beverage sales in 2021, suggesting that brands should lean heavily into this particular product type.

Followed by conventional water and tea

Conventional or non-sparkling CBD water products contributed 18% to overall CBD beverage sales, indicating enduring consumer interest in this product category. Packaged and ready-to-drink CBD teas were also reasonably popular (13%), suggesting that these three product types (sparkling water, bottled water, and bottled teas) should take up the majority of the focus of CBD manufacturers investing in beverages.

25mg products are the most popular

Consumers have voted with their dollars to tell brands exactly which dose of CBD they prefer in beverages. These days, it’s not ideal to include less than 10mg of CBD in a conventional 12oz beverage can, and most consumers want even more CBD in their drinks.

While 50mg CBD drinks might be more potent than most users would like, a 25mg dosage appears to hit the sweet spot. If you want to provide exactly what CBD retail consumers want, focus on sparkling CBD water products that contain 25mg CBD each.

Sales contribution of CBD beverage products by milligram:

– <10mg: 16%

– 10mg: 12%

– 20mg: 7%

– 25mg: 64%

– Other: 1%

Consumers want a wider array of products to choose from

One refrain that consistently came up in Hemp Industry Daily’s reporting is that retail consumers want to be able to access a wider array of CBD products at their local grocery and convenience stores. In most cases, retailers only stock 1-2 different CBD beverage products, and if those products aren’t to a consumer’s liking, they’ll simply take their business online.

Ideally, convenience stores should offer at least 3-5 different CBD beverages, and grocery stores should have 6-10 options to choose from at the minimum. Any less, and consumers won’t have the patience to settle for the selection in front of them and will contribute to the trend of shopping for CBD online.

CBD beverages aren’t going away

It’s important to stay focused on the bigger picture. According to Nielsen’s Maturo, CBD beverages are still expected to make up 19% of total CBD sales by 2025, contributing nearly $1.3 billion to the domestic hemp market.

The important takeaway is that it’s time for manufacturers to reconfigure their approach to retailing CBD drinks in anticipation of a massive coming upsurge in popularity. It’s not that CBD beverages have no potential in grocery stores but that brands have so-far failed to nail down the CBD drinks consumers want and stores have failed to stock adequate variety.

Further analysis from 360 Market Updates

To better contextualize how the slow growth of CBD beverages in brick-and-mortar environments actually foretells great promise within this sector, we turn to recent analysis provided by market research firm 360 Market Updates. According to the firm’s 2022 report on the CBD beverages market², this subsector of the hemp industry is expected to grow by around 61% per year between now and 2026, swelling in size from $37 million in 2022 to $643 million in 2026.

The rising popularity of CBD beverages may mainly be growing under the surface for now, but this recent analysis predicts the dam will burst in the near future, leading to a renaissance of CBD beverage sales in brick-and-mortar environments. CBD itself had touch-and-go moments before it became a household name, and it’s common for any new product type to experience these growing pains during its first few years on the market.

While it’s true that the analysis conducted by 360 Market Updates differs slightly in its conclusions from the Hemp Industry Daily report, both predict massive growth in the future of the CBD beverage industry.

BevNet’s 2022 take

For further wide-angle data regarding the overall growth trajectory of the CBD beverage industry, let’s look at a recent report from BevNet, another notable market research firm. In its 2022 analysis of the CBD beverage industry³, BevNet reminds us that CBD beverages have been the fastest-growing CBD products since 2018 before moving on to note that 33% of CBD drink purchasers are self-described “stressed-out Millennials.”

Perhaps most notably, BevNet found that nearly half of CBD drink users were daily consumers, indicating a degree of regularity of use not commonly found in other CBD products. Unlike CBD tinctures, gummies, and other conventional oral products which last weeks or months, CBD drinks must be repurchased regularly, leading to greater brand loyalty.

With CBD drinks now staples in many grocery stores nationwide, the likelihood of CBD drink users becoming daily consumers will only grow. The convenience of being able to buy your weekly dose of CBD along with the rest of your shopping will only become more apparent as we return to a pre⁠-pandemic, in-person economy.

Analysis

The most relevant continuing impediment to the success of the CBD beverage industry remains ongoing lack of federal regulatory clarification. In the waning days of 2020, it seemed a near certainty that overall federal cannabis reform was imminent, which would bring with it that further level of legitimization of the CBD industry necessary for major consumer packaged goods (CPG) manufacturers to get onboard.

With the pandemic, however, many functions of the federal government became incapacitated, and the hemp industry has become progressively more restive as month after month goes by with little meaningful change. It’s still likely that comprehensive clarification of CBD’s regulatory state remains upcoming, but there’s no longer reasonable confidence in any particular time frame.

Regardless, brands should continue offering the best products they can and proactively observing all possible compliance measures. That’s where working with an established bulk CBD producer can be advantageous — what grocery store and convenience store chains want is assurance that any CBD products they take on won’t increase their exposure to potential litigation.

The superior processes used by major CBD manufacturers can provide that assurance. Knowledge of how to properly produce water-soluble CBD extracts is also still something of a closely guarded industry secret, making it difficult to compete in the closely guarded retail CBD environment if your extract isn’t produced by a respected manufacturer.

What’s most important to keep in mind is that Nielsen still projects that CBD beverages will make up a considerable segment of the overall CBD economy within a few short years. Now, it’s only a matter of how we get there and which brands will end up on top once CBD beverages achieve widespread retail popularity.

To close on an uplifting note, we turn once more to Rick Maturo: “Unlike other hemp-CBD formats, beverages offer brands and retailers a multitude of innovative styles, flavors and functional benefits,” says Maturo, reminding manufacturers that these uniquely desirable features “are all built into a familiar, easy-to-use format.”

CBD beverage sales FAQs

Dive deeper into the world of CBD beverages in the FAQ section below:

1. Are CBD-infused drinks safe?

There’s no inherent reason that CBD-infused drinks should be any safer or more dangerous than any other type of CBD product. As far as ingestion methods go, there’s nothing about orally ingesting CBD in the form of a liquid that should cause concern. The process that makes CBD water-soluble does not change its chemical form, it just encapsulates it into a more easily dissolvable form.

2. What are the best CBD drinks?

The best CBD drinks feature CBD, water, and not much else. Overall, you’re better off without the sweeteners and artificial ingredients that are present in conventional ingredients — which are also present in CBD-infused drinks. Teas and sports drinks are usually okay, but watch out for sodas and other sugary beverages. They often contain artificial sweeteners and flavorings — whether they include CBD or not.

3. What are the pros and cons of CBD drinks?

Let’s break it down, starting with the pros:

– Convenient

– Recognizable product format

– Picked up by big box stores

– Low dose

– Low manufacturing cost

And now, the cons:

– Extra-low doses can lead shoppers to think their drinks are ineffective

– Sometimes contain low-quality or unnecessary ingredients

– CBD only stays suspended in water for around 90 days

4. How much CBD water should I drink?

Most CBD water beverages contain around 5-25mg CBD. Since the average dose of CBD is around 25-50mg, it would make sense to drink around 1-3 CBD drinks at a time. Make sure to look at the dosage before taking a sip, however, since dosage in CBD drinks varies considerably.

Sources

1. MJBizDaily. (n.d.). CBD beverage sales a struggle for major US retailers. Retrieved January 1, 2022, from https://hempindustrydaily.com/cbd-beverage-sales-a-struggle-for-major-us-retailers
3. Global Cbd Beverages Sales Market. 360 Market Updates. (n.d.). https://www.360marketupdates.com/global-cbd-beverages-sales-market-16615889
3. Caballero, M. (2022, April 2). Cool, Calm and Climbing: CBD Drinks Keep Growing, Despite Wait for Regulatory Clarity. BevNET.com. https://www.bevnet.com/magazine/issue/2022/cool-calm-and-climbing-cbd-drinks-keep-growing-despite-wait-for-regulatory-clarity/

How Are Consumers Choosing Their CBD Dose?

Posted on December 12, 2022March 27, 2024 by daryna muravenko

CBD is growing in popularity throughout the world due to its many potential health benefits and non-intoxicating properties. For example, a recent Forbes Health survey reported that 60% of adults in the United States have tried CBD at some point in their life and believe the compound is medicinally valuable¹ Consumers have a wide variety of CBD products to choose from but each person has their own unique dose that fits their needs.

Recent polling by Leafreport and The CBD Insider gives us unprecedented insight into the minds of CBD users, including:2,3

How consumers decide how much CBD to use
Which sources consumers consider authoritative on CBD dosage
How satisfied consumers are with the CBD doses they chose

To effectively reach CBD users, you must first learn who they listen to and what they want to hear. Use this guide to craft your value proposition to match the realities of the modern CBD industry.

How do I pick a dosage for CBD?

According to the latest data, CBD dosage remains an area of active research.4 So far, no consensus currently exists on the dosages required for specific ailments, with quantities varying from study to study.

So, what is the right CBD dosage for you? As with any new substance, it is important to start small and work your way up. It often takes some experimentation and adjustments to find the right dosage.

To get the best results, begin with a small dose and slowly increase the dosage until you achieve the desired effects. Nevertheless, satisfaction with selected CBD doses remains high.

The new data from Leafreport

In a report released on October 16th, 2022, market analyst Leafreport² provided detailed new data on awareness of CBD among consumers and how they make choices regarding how to use CBD. Overall, this voluminous report covers nearly a dozen different sets of data regarding CBD use and decision-making, of which only a few are relevant to the current discussion.

Below, we will cover key insights from the Leafreport analysis pertaining to how consumers establish their CBD use habits.

How do consumers decide on CBD dosage?

According to the Leafreport:

– 71% of CBD consumers determine dosage without consulting with a professional
– 18% ask a doctor
– 11% ask a CBD industry professional

Leafreport’s key finding was that 71% of CBD consumers determine their dose without consulting with a professional of any kind. Whether it is a medical doctor or a budtender, CBD consumers tend to disregard the opinions of those “in the know” in preference of discovering their own way through the complex modern CBD landscape.

How often do consumers use CBD?

The report also covered the frequency of CBD use with the following statistics:

– 14% take multiple CBD doses per day
– 31% daily users
– 27% weekly users
– 7% monthly users
– 21% infrequent user

– 31% of respondents in the Leafreport survey who use CBD indicated that they use CBD daily, and a further 27% said they use CBD weekly. Overall, that makes more than 50% of the respondents regular CBD users, meaning that their opinions are based on actual experience.

How much CBD do consumers take at a time?

The amount of CBD that consumers in the report took at one time varied as follows:

– 13% take less than 5mg
– 26% take 5-10 mg of CBD per dose
– 17% take 10-20 mg per dose
– 11% take 20-40 mg per dose
– 4% take 40-70 mg per dose
– 3% take 70-100 mg per dose
– 4% take more than 100 mg per dose
– 22% had no idea about dose size

The largest percentage of CBD consumers (26%) only reported using 5-10 mg of CBD per dose. Seventeen percent took 10-20 mg per dose, and 11% reported taking 20-40 mg.

Most interestingly is the number of Leafreport survey respondents who had no idea how much CBD they used on a daily basis (22%). This is the second-largest category over the 5-10 mg group, introducing an element of unpredictability to all the data Leafreport received

Are consumers happy with the CBD doses they chose?

Even though many CBD consumers are unaware of how much CBD they are using, CBD consumers are certainly happy about it. With 57% of CBD users reporting that they are satisfied with the dose they chose, the accuracy of dosing seemingly makes little difference in how impressed CBD users are with the results they achieve.

– 57% were happy about the dose they chose and still use it
– 17% increased their dosage
– 10% decreased their dosage
– 16% have not found the right dose

Does CBD dosage change based on the time of day?

Consumers reported the following when asked if they changed their dosage based on time of day:

– 48% always use the same amount of CBD
– 32% take variable doses
– 20% purposefully alter their dose based on the time of day

Despite the fact that many CBD products are targeted to be used during a certain time of day, only 20% of Leafreport respondents indicated that the hour had any impact on their CBD usage. Nearly 50% indicated that they used the same dose of CBD regardless of timing, and 32% said they simply took as much CBD as they needed at a given time.

How much CBD do consumers want products to contain?

Leafreport’s results regarding desired potency in CBD products agree with common-sense expectations. The vast majority of CBD users want products containing somewhere between 1mg and 1000mg of CBD, and only a small subset of consumers want higher doses. Interestingly, more than a quarter (26%) of respondents indicated that they do not check cannabinoid concentrations when buying CBD products.

– 28% want products with less than 500 mg CBD
– 32% want products with 500-1000 mg CBD
– 9% want between 1000 and 2500 mg
– 5% want more than 2500 mg CBD per product
– 26% do not check CBD concentrations

How useful was CBD in the course of treatment?

Even without a professional assessment, CBD users are remarkably satisfied with the impact CBD had on the condition they were attempting to treat. The largest group of Leafreport respondents (32%) were completely satisfied with the effect CBD had on their condition compared to only 4% who were completely dissatisfied.

– 34% gave CBD a 5-star rating
– 32% 4-star
– 23% 3-star
– 8% 2-star
– 4% 1-star

Key takeaways: Are consumers self-determining CBD dosage effectively?

CBD consumers are among the most independent factions within the overall natural health consumer landscape. At this point in time, many CBD consumers are taking their own advice when it comes to something as important as dosing. To their credit, there are a few reasons behind this trend.

CBD is widely represented as a safe and harmless substance. As a result, consumers are less cautious in general with CBD. However, each person has a different receptivity and tolerance to cannabinoids. Each individual does in fact have a dosage that is specific to their needs and overall receptivity of the cannabinoid.

As time moves forward and the industry continues to learn more about the use and benefits of CBD through research, we expect breakthroughs to emerge, allowing individuals to have access to recommended dosages based on their own body’s receptivity.

CBD dosage FAQs

Learn the basics of dosing CBD below:

1. How often should I take CBD?

There are no official guidelines regarding how often you should take CBD. Most users find the effects of orally ingested CBD to last around 2-3 hours, though, so it is common to take CBD 5-6 times per day. At an average dose of 10-20 mg, this equates to approximately 50-120 mg CBD per day – close to what most daily users end up consuming.

2. How do you calculate CBD dosage?

Since most CBD products list the total CBD per bottle more clearly than the CBD per dose, calculating the dosage of CBD in your product can be a challenge. Most CBD products feature fine print, however, that indicates how much CBD is contained in a serving and the size of a serving. Some CBD tinctures even have droppers with measurement lines to provide 100% accurate dosing.

3. How do you use a CBD dosage calculator?

To use a CBD dosage calculator, you usually need to provide your weight, the total amount of CBD in your product, and your desired dose (mild, moderate, or heavy). Based on these criteria, the majority of CBD dosage calculators available online will be able to provide you with useful recommendations.

4. Is CBD safe at any dose?

So far, research into CBD reports a dose-dependent relationship with purported side effects of CBD and amount taken.5 These side effects increase the more you take and include drowsiness and sleep disturbances. While individual instances of bad reactions to CBD do occur, they appear to be more related to the properties of the product or the health status of the individual than they are with CBD’s inherent traits. Practice caution when dosing with CBD, but recognize that the general consensus is that an overabundance of caution is unnecessary.

If you are taking any medications or are managing a health issue it is important you consult with your healthcare provider to make sure it is safe for you to take CBD.

5. How much CBD should a tincture contain?

To contain enough CBD for a considerable number of doses, a CBD tincture should contain at least 250 mg CBD. The vast majority of tinctures on the market, however, contain considerably more than this CBD concentration: 500-1000 mg is the norm, but some tinctures contain more than 2500 mg CBD. It’s generally viewed as unnecessary to pack more than 3000 mg of CBD in a tincture.

6. What is the best CBD dose for sleep and anxiety?

Most users find that 25-50mg of CBD is best for sleep or anxiety concerns. In clinical studies, much higher doses have been used, but it’s unclear whether increasing the dose above 50mg considerably increases the usefulness of CBD for either facilitating sleep or reducing anxiety. Ask your doctor if you have any unanswered CBD dosage questions.

7. What are the effects of a 25mg CBD drink?

If you drink a CBD beverage that contains 25mg CBD, expect to feel the same way you would after a moderate CBD tincture dose or 1-2 capsules or gummies. Just because it’s included in a drink doesn’t mean that CBD somehow becomes monumentally more effective. An orally ingested 25mg dose of CBD feels about the same whether it’s taken in the form of a pill, gummy, tincture, or drink.

8. What are the effects of 10mg CBD gummies?

A CBD gummy with only 10mg CBD will not be particularly effective on its own. However, some users prefer the freedom of dosing CBD in 10mg increments, in which case 2-3 gummies might be taken at once. Nonetheless, an average CBD gummy contains at least 25mg CBD.

9. Is 10 drops a good dose for CBD oil?

Whether or not 10 drops constitutes an effective or safe dose of CBD oil depends on both the quality and the potency of the CBD oil in question. If a CBD oil contains 1500mg CBD in a 1oz bottle, for instance, 10 drops might contain around 10-20mg CBD — a reasonable dose. A tincture with only 500mg spread across 1oz, though, will only deliver 3-10mg CBD in 10 drops, which most likely won’t be sufficient.

Sources

1. Hall, A. (2022, April 21). Survey: 64% Of U.S. Adults Think CBD Is Safer Than Alcohol, Despite Legality Concerns. Forbes Health. Retrieved from https://www.forbes.com/health/body/2022-cbd-survey/
2. Stone, E. F. (2022, October 16). Spotlight on CBD Dosage: 71% of CBD Users Self-determine Dosage Without Consulting a Professional. Retrieved October 17, 2022, from https://www.leafreport.com/education/spotlight-on-cbd-dosage-71-of-cbd-users-self-determine-dosage-without-consulting-a-professional-13920
3. Insider, T. C. (2022, September 22). 2021 US CBD Consumer Report. The CBD Insider. Retrieved October 17, 2022, from https://thecbdinsider.com/featured-article/the-cbd-insider-2021-us-cbd-consumer-report/
4. White, C. M. (2019). A review of human studies assessing cannabidiol’s (CBD) therapeutic actions and potential. The Journal of Clinical Pharmacology, 59(7), 923-934. Retrieved from https://pubmed.ncbi.nlm.nih.gov/30730563/
5. Brown, J. D., & Winterstein, A. G. (2019). Potential adverse drug events and drug–drug interactions with medical and consumer cannabidiol (CBD) use. Journal of clinical medicine, 8(7), 989. Retrieved from https://www.mdpi.com/2077-0383/8/7/989?utm_sq=g4xlu2tj61

New Report Reveals Only 7% of CBD Companies Properly Test Products

Posted on December 8, 2022March 27, 2024 by kateryna

Proper product testing is of paramount importance in the CBD industry Companies that choose to pursue proper testing protocols inevitably reap the greatest rewards, but new data from Leafreport¹ reveals that a surprisingly small number of CBD producers comprehensively test their products².

Why is CBD product testing so important, and how should the CBD industry respond to its systemic lack of testing rigor? Learn the latest information and discover pragmatic solutions in this guide.

What is CBD product testing?

Since the inception of the modern CBD industry, third-party product testing has been a key tool for expressing product quality to both consumers and regulators³. Though the FDA has not established testing protocols for the CBD industry, following proper testing procedures proactively is understood to be a reasonable policy in anticipation of eventual industry-wide standardization.

In the absence of such testing standardization, third-party lab testing is the only tool at a consumer’s disposal to determine the safety and purity of a CBD product they are considering using. Over the years, consumer awareness of the importance of CBD product testing has risen to the extent that lab reports now serve a marketing purpose that’s just as important as their furtherance of transparency. CBD product lab tests should provide information on the constituent components of the hemp extract and also provide parts-per-million (PPM) information for various common contaminants. Especially due to the hemp plants’ ability to bioaccumulate possible contaminants from soil, total transparency regarding contamination in CBD products is absolutely vital⁴.

Why is CBD product testing important?

CBD product testing provides consumers with assurance that the CBD products they use are safe and provides brands with a key tool for relaying the benefits of their CBD products to consumers. Especially in the absence of meaningful federal regulation of the CBD industry, lab testing is essentially the only mechanism in place to ensure that contaminated products are detected and prevented from entering the CBD supply.

Product testing also provides the overall CBD industry with a level of legitimacy that it would otherwise have difficulty projecting. By conducting proper lab testing, CBD companies prove that they are “on the level” and that their products do not contain detectable levels of THC. Without comprehensive lab testing, CBD users are left in the dark, and the industry itself loses legitimacy.

Areas CBD tests must cover

Due to the nature of the hemp plant, CBD product testing is complex and must cover a variety of different factors. To start, it is important that CBD products fall within 10% of their stated potency. Lab tests must also accurately represent the concentrations of common contaminants they contain, including microbes, heavy metals, and pesticides.

Here is a look at each area in more detail:

Potency

The amount of CBD a product contains is known as its potency. If the total size of a CBD tincture, for instance, is 1000mg and it contains 800mg CBD, its potency is 80%.

The potency information in a CBD lab report should not only pertain to CBD, however. Just as vital is information regarding the concentration of THC in the product, which must remain below 0.3% to be in compliance with the 2018 Farm Bill⁵.

Depending on the product, it may also be relevant to relay the concentrations of minor cannabinoids and terpenes present. The role terpenes play in the benefits of hemp products is not being actively explored, and consumers increasingly demand information about the terpenes in their CBD products.

Microbial content

During maturation, hemp is relatively prone to fungal and bacterial infections and may be contaminated with microbes during harvesting and extraction. The onus is on CBD producers to prove they properly prevented microbial contamination while making their products.

Heavy metals

Heavy metal contamination in soil leads to product contamination in a variety of industries, but it is especially prevalent in the CBD industry due to hemp’s bioaccumulative properties. During maturation, hemp draws everything in the surrounding soil into itself — even harmful contaminants like heavy metals. To prove they pursued cultivation processes that prevented contamination, CBD companies must show that their products do not contain any traces of these heavy metals.

Pesticides

Even organic hemp products can become contaminated with pesticides used in neighboring agricultural operations. Carried by air or water runoff, pesticides can enter hemp roots and contaminate flowers, making it essential for hemp brands to provide sufficient evidence that their products are pesticide-free.

The latest data from Leafreport

What Leafreport has to say about the current status of testing in the CBD industry is not particularly positive. In great crisis, there is also great opportunity, though, and by learning about the ways CBD testing currently falls short, we can make sure the industry takes a better approach in the future. At GVB, we strive for excellence in our product quality, testing multiple times throughout the production process to ensure we are producing the highest quality ingredients and finished products on the market.

Leafreport’s opening paragraph states that “transparency within the CBD industry appears to be stagnating and deteriorating in several critical respects.” Slightly further in, the report goes on to say that “CBD purity testing for three main contaminants… is still conducted at very low rates across the board” and that “the number of brands with products that measure beyond acceptable potency variance levels is rising.”

We’ll get into what all this means below.

Methods

To produce its report, Leafreport analyzed 4,384 products made by 188 different CBD brands. Leafreport conducted its own tests of each product and compared them to the tests provided by the producer. A full list of the criteria Leafreport tested includes:

– The percentage of products tested for potency

– The percentage of products that tested within 10% of their stated potency range

– The percentage of products tested for pesticides

– The percentage of products tested for heavy metals

– The percentage of products tested for microbes

Key findings

Here’s a summary of the results of Leafreport’s massive, industry-wide analysis:

– 20% of brands do not test their products for pesticides, heavy metals, or microbes

– 28% of brands did not test for pesticides

– 26% did not test for heavy metals

– 24% did not test for microbes

– Only 7% of brands tested for all three contaminants

– 42% of brands test the potency of almost all their products

– Only 12% of brands had all their products test within 10% of the stated potency

– 88% of brands had at least one product that tested outside the acceptable potency variance

– Two brands did not provide any test results whatsoever

Analysis

In some ways, Leafreport’s new 2022 data has improved over 2021’s analysis. Twenty-five percent of brands failed to provide purity testing in 2021, representing a 5% year-over-year decrease. The percentage of brands that test for all three common contaminant types also improved by one percentile point.

In other areas, however, testing within the CBD industry worsened. 84% of brands had at least one product that tested outside the acceptable potency variance in 2021, for instance, marking a trend of four percentile points in the wrong direction in 2022.

Leafreport summarizes its data thusly: “Compared with our 2021 analysis, brand commitment to potency, purity testing, and ensuring acceptable levels of potency variance appears to be floundering.” Even if brands are weary of a continuing lack of comprehensive federal guidance on CBD, the only option is to stay the course and place further emphasis on industry standardization and preemptive compliance.

To conclude, Leafreport turns to two major executives in the CBD space, Papa & Barkley’s Guy Rocourt and Green Roads’ Laura Fuentes. Both concur that the CBD industry is engaged in a “race to the bottom” in which “many brands who only do the bare minimum that is required by law.”

The answer, Fuentes says, is not necessarily further regulation. “[T]he best way consumers can protect themselves is by choosing reputable CBD brands.”

Choose your CBD products wisely

The message that CBD consumers should take out of Leafreport’s 2022 data is that it is more important than ever before to choose your CBD products with an abundance of caution. While the trajectory of the CBD industry appeared firmly pointed at ever-greater professionalism and rigor a few years ago, something within the industry’s culture has seemingly soured.

It is not too late to put things straight. The best members of the CBD manufacturing community can now take it upon themselves to set a standard for compliance and testing that makes it impossible for brands that do not take testing seriously to compete.

Continue calling for rigorous testing

The best way to ensure a better future for CBD product testing is to continue raising awareness about the importance of testing and the vital role it must play in the consumer decision-making process. The more CBD consumers know they should only purchase safe, tested products, the more that disreputable brands will either be forced to adopt proper testing standards or go out of business.

Rising testing standards are not the only facet of the CBD industry that has recently stagnated — everywhere throughout the world of cannabis and hemp, stakeholders are feeling the squeeze as global economic conditions tighten and geopolitical projections destabilize. True leaders in the CBD industry are now presented with an opportunity to lead a consolidated industry into a future of greater standardization, improved product quality, and even more widespread acceptance.

State of testing in the CBD industry: FAQs

1. How are CBD products tested?

CBD products are usually tested using chromatography, a method that involves separating and measuring components in a mixture. A variety of chromatography methods can be used with CBD products, and each lab has its own proprietary approach to the process. Contact a specific lab if you have questions about their testing methodology.

2. Does CBD have to be tested?

While there is no legal requirement for CBD products to be tested at the federal level, it has become the sign of a high-quality and trustworthy CBD product if it is accompanied by a verifiable lab report. In the absence of meaningful federal regulations that would otherwise ensure quality within the CBD industry, shoppers must rely on tools like lab tests to determine if the CBD products they use are safe and effective.

3. How do you tell if CBD is high-quality?

Since federal regulations regarding CBD are still lacking, it remains a case that lab reports are the most effective tools you can use when determining the quality of a CBD product. Always ask if you have any questions about the lab reports a company provides for its products.

Sources

1. Evans, D. G. (2020). Medical fraud, mislabeling, contamination: all common in CBD products. Missouri Medicine, 117(5), 394. Retrieved from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7723146/
2. Stone, E. F. (2022, October 16). CBD Market Transparency Report: Only 7% of Brands Test for Pesticides, Heavy Metals and Microbes. https://www.leafreport.com/education/cbd-market-transparency-report-only-7-of-brands-test-for-pesticides-heavy-metals-and-microbes-16349
3. Blebea, N. M., Costache, T., & Negres, S. (2019). The qualitative and quantitative analysis of CBD in hemp oils by UHPLC with PDA and applications. Animal Science, 72(1). Retrieved from http://animalsciencejournal.usamv.ro/pdf/2019/issue_1/Art20.pdf
4. Rheay, H. T., Omondi, E. C., & Brewer, C. E. (2021). Potential of hemp (Cannabis sativa L.) for paired phytoremediation and bioenergy production. GCB Bioenergy, 13(4), 525-536. Retrieved from https://onlinelibrary.wiley.com/doi/full/10.1111/gcbb.12782
5. Abernethy, A. (2019). Hemp Production and the 2018 Farm Bill. US Food and Drug Administration. Retrieved from https://www.agriculture.senate.gov/imo/media/doc/Testimony_Abernethy%2007.25.19.pdf

2021 Convenience Store Sales Reveal CBD Industry Insights

Posted on December 8, 2022March 27, 2024 by daryna muravenko

Convenience stores are among the smaller contributors to the overall CBD economy. The US cannabidiol industry was estimated to be worth approximately $5 billion in 2021, of which convenience stores (c-stores) only made up $42.7 million, reports legacy market analysis publication Convenience Store News & Petroleum (CSP).

Despite its limited impact on the wider CBD economy, however, the behavior of CBD products in gas stations and convenience stores can tell us a lot about American sentiment toward CBD and how the cannabinoid is fitting into existing habits. In this guide, we’ll take a close look at CSP’s 2021 CBD data¹ to reveal new insights into the evolving status of the brick-and-mortar CBD market.

A “slow-burning” CBD industry

Tirey applauds product innovations in 2021 that made CBD more appealing to gas station customers. “Look at the inclusion of vape CBD products… [f]lavor profiles for beverages have [also] drastically improved over the last year.”

The key insight of this preface is that the growth of the CBD industry within convenience stores appears to have stabilized but is still robust. Executives at gas stations seem keen to provide customers with what they want, which are primarily CBD vapes and other products aimed at stress relief.

The latest CSP data

We now turn to the data CSP provided on the status of the convenience store CBD industry. Overall, the numbers are positive with some obvious areas to target for maximal growth.

Note: Any category names used in the following sections are descriptions CSP used. They are not intended to refer to the regulatory status or therapeutic properties of the products categorized.

2021 CBD convenience store gross sales

First, CSP covers the total sales CBD products grossed in convenience stores across all of its conventional product categories. Traditional market analysts have been forced to find ways to categorize CBD products, which they mostly refer to as “vitamins” or “electronic smoking devices.”

All values are provided in millions.

Vitamins

– Convenience store total sales: $13.4

– Percent changed over last year: 41%

– Unit sales in convenience stores: 1.3

– Percent changed over last year: 36.9%

Electronic smoking devices

– Convenience store total sales: $12.3

– Unit sales in convenience stores: 0.5

– Percent changed over last year: 326.3%

Bottled water

– Convenience store total sales: $3.4

– Percent changed over last year: 17.6%

– Unit sales in convenience stores: 0.8

– Percent changed over last year: 10.8%

Analgesic rubs

– Convenience store total sales: $2.4

– Percent changed over last year: 51.2%

– Unit sales in convenience stores: 0.8

– Percent changed over last year: 10.8%

Sleeping remedies

– Convenience store total sales: $2.2

– Percent changed over last year: 70.5%

– Unit sales in convenience stores: 0.2

– Percent changed over last year: 47.4%

Smoking accessories

– Convenience store total sales: $1.1

– Percent changed over last year: 0.6%

– Unit sales in convenience stores: 0.7

– Percent changed over last year: 0.9%

Carbonated beverages

– Convenience store total sales: $0.7

– Percent changed over last year: 7.4%

– Unit sales in convenience stores: 0.2

– Percent changed over last year: 10.2%

Seasonings

– Convenience store total sales: $2.2

– Percent changed over last year: 6.4%

– Unit sales in convenience stores: 0.2

– Percent changed over last year: 5.6%

2021 CBD convenience store sales by category

CSP further separated 2021 CBD sales into its six main product categories. CBD sales were only substantial in four out of the six categories, though, data for which are provided below:

Other tobacco products

– Convenience store total sales: $3.4

– Percent changed over last year: 161%

Health & beauty

– Convenience store total sales: $5.3

– Percent changed over last year: 44%

Packaged beverages

– Convenience store total sales: $0.2

– Percent changed over last year: 28.1%

Alternative snacks

– Convenience store total sales: $0.1

– Percent changed over last year: 15%

Percentage of sales per category

Out of the stated $42.7 grossed by CBD products in convenience stores in 2021, the vast majority (74%) came from the health and beauty category ($17.6). The next highest-percentage category (21%) was CBD-infused “tobacco products,” including vapes ($5.1). Packaged beverages and alternative snacks made up 2% and 1% respectively.

Top convenience store CBD subcategories in 2021

The categories CSP has used so far make more sense to gas station executives than they do to CBD entrepreneurs. CSP makes it a bit simpler, though, by breaking its numbers down into more-familiar subcategories. Again, these category names aren’t being used to describe the regulatory status or therapeutic purposes of CBD:

OTC medications

– Convenience store total sales: $4.8

– Percent changed over last year: 41%

Vapes

– Convenience store total sales: $2.4

– Percent changed over last year: 105%

Skincare

– Convenience store total sales: $0.5

– Percent changed over last year: 36%

Smokeless tobacco products

– Convenience store total sales: $0.4

– Percent changed over last year: 4%

Tobacco products

– Convenience store total sales: $0.3

– Percent changed over last year: 46%

E-cigarettes

– Convenience store total sales: $0.2

– Percent changed over last year: 13%

2021’s top CBD brands in convenience stores

Even if you’re well versed on the top brands of the online CBD industry, you might be caught by surprise by some of the top names in gas station CBD. An almost entirely different set of brands have started fighting for space within the convenience store CBD industry, including:

– Sky Wellness

– Whisl

– Reliva

– Floyd’s

– Hemp Bombs

– Cannadips

– Hempzilla

– Pana

– CBDaFI

– Forth

Further data

Beyond this basic information on the flow of CBD-related money within convenience stores, CSP goes on to dive deeper into some more detailed areas of data. Here are summaries of the remaining insights from CSP’s report on CBD:

Purchasing frequency

A full 28% of convenience store customers now buy CBD at least once per month — with that percentage jumping to 44% among individuals between ages 18 and 34.

Once shown details about CBD products, CSP found that 33% of convenience store customers who previously weren’t interested in CBD started showing interest.

Convenience store customers 35 and older were the least likely to be interested in CBD with 79% saying “no.” This massive gap of interest between generations suggests that younger people are starting to view gas stations and convenience stores as reliable sources of CBD products.

Display habits

Convenience store owners may be tired of CBD brands insisting that they display products separately, but creating a special section just for CBD products appears to simply be good business sense. Young (53%) and old (74%) convenience store customers agree: CBD products should be separated from other products to avoid confusion. Overall, 64% of convenience store patrons believe this would be a good idea.

Interest in CBD food

Currently, the FDA prohibits CBD from being present in food. However, 77% of individuals who currently purchase CBD products at convenience stores would like to be able to purchase CBD food as well.

Favorite CBD food items

Which CBD-infused foods would customers buy at convenience stores if they had the opportunity? Here are CSP’s most popular answers:

– Cold beverages (48%)

– Baked goods (44%)

– Hot beverages (38%)

– Frozen beverages (38%)

– Snacks (38%)

– Beverage enhancers (34%)

– Condiments, sauces, flavorings (33%)

– Full meals (27%)

Reasons for not wanting to buy CBD

For the most part, convenience store customers who don’t want to buy CBD simply don’t want to buy it (64%). Out of those who go on to provide an actual objection, 23% say they simply don’t know enough about CBD. Fifteen percent cite safety concerns, which are interestingly more prevalent among younger customers.

Only 6% of averse convenience store customers now choose not to use CBD because they think it would get them high, proving that the industry has been successful in dispelling this myth.

Analysis

The data in this report make clear that young people are relying upon gas stations for their CBD needs and primarily are interested in unconventional products, most notably vapes. Older CBD users may be unaware that CBD products are available at convenience stores or they may simply be accustomed to purchasing CBD online.

Older individuals who shop at convenience stores seem comparatively uninterested in CBD products. Due to these prevailing dynamics, attempts to market CBD products that are not related to vaping, food, or beverages in convenience stores are unlikely to be as successful as efforts to market such products online.

Though it may seem like a flash in the pan at this point, the younger generation’s interest in buying vape and beverage CBD products at convenience stores should not be overlooked. CBD has undeniably caught on within the convenience store environment, and now it’s simply a matter of adapting CBD product portfolios to the environment’s unique dynamics.

Convenience store CBD sales FAQ

Dive deeper into the significance of convenience store CBD sales in the FAQ section below:

1. Can you buy CBD at gas stations?

Yes, CBD products are now widely sold at gas stations throughout the United States. In fact, it is most likely that more gas stations than not carry at least a few CBD products with many devoting entire sections or shelves to products containing CBD.

To gas stations, CBD products are easy sells that bring in high margins. To CBD users, gas stations are convenient places to buy CBD products. The combination of these two genuine economic benefits has caused CBD and gas stations to take to each other like kindling to a flame.

2. Can you buy CBD at convenience stores?

Yes, CBD is now available at many convenience stores throughout the nation — whether they are connected to gas stations or not. Even urban convenience stores with not a gas pump to be found commonly carry CBD products due to their popularity and profitability. If you are unsure whether a convenience store near you carries CBD products, check their online reviews. Searching for keywords like “CBD gummies” will help you find reviews that mention these products.

3. Who has the biggest CBD retail stores?

Since there is no centralized reporting system for this new segment of the economy, it is unclear which company currently operates the greatest number and largest-sized CBD retail stores in the country. As you make your estimations, keep in mind that specialty stores selling only CBD generally sell fewer overall products due to their decreased foot traffic. If stores that also sell non-CBD products are taken into account, it’s likely that either Kroger or Whole Foods would be considered the largest CBD retail chain.

4. Are CBD stores successful?

Some CBD specialty stores have been quite successful. The best results have been achieved when stores honestly and transparently sell well-known products at comparable prices to what you would find online without misleading shoppers or behaving in a predatory manner. It remains an undeniable fact, though, that large retailers continue adopting CBD products, threatening to gradually push specialty stores out of the market.

Sources

Lindenberg, G. (2022, November 9). ‘Americans Are in Love With C-Stores’: Survey. CSP Daily News. https://www.cspdailynews.com